Cold Wallet vs Hot Wallet_ Which Is Safer for Your Bitcoin & Crypto in 2025_

1. Cold Wallet vs Hot Wallet: Which Is Safer for Your Bitcoin & Crypto in 2025? Digital assets like Bitcoin, Ethereum, and a flood of other cryptocurrencies have become a mainstream investment and transaction medium—from India’s growing crypto market to the tech-savvy users in Germany and Austria to the innovation hubs of the GCC. As adoption increases, security remains the biggest challenge. One of the core decisions any crypto user must make is: Do I use a hot wallet or a cold wallet? In 2025, as threats evolve, this question is more important than ever. In this article, we compare hot wallets vs cold wallets, examine their pros and cons, highlight best practices, and show how Serenity Technologies’ product sAxess is positioned in this landscape. If you're in GCC, India, Germany or Austria (or anywhere), this guide will help you choose wisely. What Are Hot Wallets and Cold Wallets? Before diving into safety, let’s define the two. ● Hot Wallet: A digital wallet connected to the internet. This includes mobile wallets, desktop wallets, browser/extension wallets, or wallets on exchanges. Because of their online connectivity, hot wallets are very convenient for frequent transactions, trading, or interacting with DeFi applications.

2. ● Cold Wallet: An offline storage solution. Examples include hardware wallets, paper wallets, specialized secure cards/devices. Cold wallets keep private keys offline (or “air-gapped”), which makes them less exposed to online threats. Why Does Safety Matter in 2025? Some key trends emphasizing security now: ● Cyberattacks, phishing, credential leaks continue to rise globally. Even in regulated markets in Germany, Austria, and strong legal frameworks in GCC states, individual user vulnerability remains the weakest link. ● As crypto integrates more with real-world services (payments, identity, digital assets, etc.), regulatory scrutiny increases—but so do expectations of security, especially in India (where regulation is advancing) and Europe. ● Threats are getting more sophisticated: malware, clipboard hijacking, address spoofs, social engineering, and more. Mere password protection is no longer enough. ● Users hold more value in crypto: long-term investments, NFTs, tokens, etc. Losing seed phrases or private keys can mean losing all access forever. Thus, deciding whether to use a cold or hot wallet (or both) is critical for protecting wealth and ensuring peace of mind.

3. Key Comparison: Hot Wallet vs Cold Wallet Where Cold Wallet Might Still Be Vulnerable Even cold wallets have risks that users must manage: ● Physical theft or loss: if the hardware device is stolen or lost, and seed phrase isn’t backed up, funds can be lost permanently. ● Damage: hardware/card/paper can be damaged (fire, water, wear). ● User error: misplacing seed phrase, exposing it inadvertently, or using fake devices. ● Advanced physical attacks: side-channel, hardware tampering. But the very best hardware wallets and secure smart cards try to protect against these. The Hybrid Strategy: Best of Both Worlds

4. Given the trade-offs, many users (in India, GCC, Germany, Austria) adopt a hybrid strategy: ● Use a hot wallet for everyday transactions, small amounts, trading. ● Use a cold wallet for long-term storage, large holdings. ● Move funds between them as needed. ● Keep backups of seed phrases, use multi-factor or biometric authentication, store hardware in safe places. This approach balances convenience and security. What Does 2025 Add to the Picture? Some recent innovations shifting the landscape: 1. Biometric Authentication & Password-Free Access Serenity’s sAxess introduces biometric-only access: the sAxess card plus app use fingerprint biometrics, eliminating traditional passwords. This reduces one of the most common points of compromise: weak or reused passwords. 2. Cold Storage + Smart Recovery / Inheritance The sAxess card is a cold wallet with hardware-based security, but also supports data recovery of seed phrases via Serenity’s sBox, along with programmable recovery (for example, inheritance mechanisms) via DeDaSP protocols. This helps mitigate risk of losing access due to loss of seed phrase. 3. Broad Blockchain Support sAxess supports 100+ blockchains, so the user doesn’t need many devices or wallets. For users in Germany, Austria, India, or GCC who may hold diverse tokens, this is a big plus. 4. Regulatory and Compliance Pressure Stronger compliance & regulation (e.g. in EU, Germany/Austria) are pushing wallet providers to adopt higher security standards. Cold wallets

5. with self-custody, biometric access, data recovery, etc., are gaining attention. Serenity Technologies’ sAxess: A Closer Look Given this background, here’s how Serenity Technologies’ sAxess product stacks up—and how it blends the benefits of both hot and cold wallets. ● What is sAxess? sAxess is a biometric blockchain card + associated app. The card is built on IDEMIA’s B.CHAIN hardware platform. It offers cold storage of crypto assets, biometric access (fingerprint), seed phrase recovery using sBox, and programmable recovery protocols (including inheritance) via DeDaSP. ● Security Features • Private keys stored offline (on the card), only accessible via biometric authentication. • Seed phrase storage and encrypted recovery mechanism (sBox), so that recoverability is built in without compromising self-custody. • DeDaSP protocol: which is Serenity’s patent-pending Decentralised Data Survivability Protocol. Enables programmable recovery, inheritance, etc. ● Use Case Fit For users in GCC or India: many people are using crypto for both investment and payments. sAxess could secure the bulk of assets (long-term holdings) while offering access via app/card for more frequent actions. In Germany/Austria, where regulations and security awareness are high, the biometric + recovery features help satisfy both user demands and regulatory expectations.

6. Hot Wallet vs sAxess: Where sAxess Leans Best Practices for Using Wallets Safely (Hot & Cold) Regardless of which wallet(s) you choose, these practices are essential—especially in 2025: 1. Never expose private keys or seed phrases ● Keep seed phrases offline: write down, use secure physical storage (safe, lockbox). ● Avoid copying seed phrases to cloud storage, email, messaging apps. 2. Use strong authentication where possible ● Biometric methods (fingerprint, facial recognition) when supported. ● Two-Factor Authentication (for hot wallet/exchange accounts). But prefer authentication apps or hardware methods over SMS wherever possible. 3. Ensure you use trusted hardware/software

7. ● Buy hardware wallets or cards from reputable suppliers. ● Update firmware/software as provided. ● Verify device integrity. 4. Beware of phishing, social engineering, address spoofing ● Always double-check the address before sending crypto. ● Do not click suspicious links or share seed phrases. ● Use official apps/websites. 5. Regularly backup and test recovery ● If you store your seed phrase, check occasionally that your backup still works (in a safe way). ● With programmable recovery/inheritance features (like in sAxess), make sure you understand and configure them properly. 6. Use a layered / defence-in-depth strategy ● Keep a small amount in a hot wallet for usage; keep the bulk in cold storage. ● Store part of the seed phrase in one location, another part elsewhere. Which Is Safer: Hot or Cold Wallet – Verdict for 2025 If the question is “which is safer?”, in general: ● Cold walletsare significantly safer against many threats—especially online hacks, malware, phishing, credential leaks. ● But safety doesn’t come for free: cold wallets require diligence in physical security, backups, and sometimes more expense. For most users, the best approach isn’t choosing one exclusively, but using both: hot wallets for convenience, cold wallets (or hardware-secure solutions) for the major part of your holdings. Region-Specific Notes: GCC, India, Germany & Austria When choosing based on your country or region, some additional matters matter: ● Regulatory & Legal Framework: In Germany/Austria (EU), data protection laws, financial regulations are rigorous. Custody, authentication, anti-money laundering (AML) rules often favor solutions which give strong proof of control (self-custody). A solution like sAxess that

8. emphasizes biometric authentication + hardware security + self-custody can help meet those demands. ● Availability of Hardware Wallets: In GCC (UAE, etc.) and India, import costs, customs duty, and device availability can make hardware wallets more expensive or harder to get. A product like sAxess Card, if distributed locally, can reduce lead time and cost. ● Security Awareness: In India especially, many new crypto users need better awareness of phishing and seed phrase risks. Educative content and regionally-tailored support (local languages, trust) matter. ● Local Threat Landscape: In some regions, SIM swap attacks, digital identity theft, malware targeting mobile devices are significant threats. Using biometric hardware cards + cold storage helps mitigate these. Why Serenity Technologies & sAxess Are Poised to Lead Bringing it all together, here’s where Serenity Technologies’ sAxess product makes a difference and why it might be the safer choice in 2025 for many users in GCC, India, Germany, Austria: ● Combination of biometric security & cold storage: The sAxess card stores private keys in a secure offline environment, and access is only by fingerprint. This reduces password-based vulnerabilities. ● Built-in recovery / seed phrase protection: The sBox feature, plus DeDaSP protocols, help with seed phrase recovery, inheritance, and emergency access—all without undermining self-custody. Many cold wallets do not offer inheritance mechanisms or programmable recovery.

9. ● Wide chain support + user-friendly interface: For users who hold different tokens across blockchains (common in GCC, India), it’s valuable that sAxess supports many chains and integrates well with apps. ● Passwordless, biometric-only external access: Eliminating passwords (often weak or reused) is a big security win. In 2025, as breaches from compromised passwords remain common, this feature can reduce risk. Summary & What You Should Do Next Here’s how to act on this knowledge: 1. Assess your crypto holdings: how much is long-term vs how much you move often. 2. Choose a cold wallet (or hybrid) for high-value holdings: consider hardware cards like sAxess that offer biometric access and strong recovery features. 3. Use a hot wallet for daily / smaller transactions, but ensure it follows best practices: 2FA, strong passwords, only trusted apps. 4. Backup seed phrases safely: offline, encrypted if needed, split across locations if you like. 5. Stay updated: firmware, OS, awareness of new threats (malware, phishing, address poisoning). 6. Prefer solutions with built-in recovery and inheritance options, especially if you want future safety (for example in case of loss or death). Conclusion In 2025, as crypto becomes more integrated with financial systems, identity management, and real-world assets, security isn’t a luxury—it’s a necessity. Cold wallets generally offer superior safety, especially for storing large amounts or holding long-term. Hot wallets serve a convenience purpose, but come with greater risk. Products like sAxess from Serenity Tecshnologies show how the gap can be narrowed: combining the offline security of cold wallets, biometric access,

10. recovery infrastructure, and support for many blockchains, all in a user-friendly package. Whether you are a user in India, GCC, Germany, Austria—or anywhere else—the safest strategy is almost always: store most of your crypto in cold, secure custody; use hot wallets only for what you need; back up carefully; and minimize exposure.