Hot Wallet vs Cold Wallet 🔥❄️ – Accessibility vs Security
Hot wallets are dominant in price volatility – traders keep funds accessible for quick reaction. Recent price increases are driven by news and inflows to exchanges, which is a sign of sell pressure. Be aware of large wallet deposits, which precede sell pressure.
Cold wallets perform well in uncertain markets – whales moving funds off exchanges is a sign of accumulation.
Trading insight: only scale in on price dips when exchange reserves drop and funding is reset. Otherwise, be careful.#freedomofmoney $ETH