What Are the Advantages & Disadvantages of Using a Hot Wallet on a Tablet or Smartphone Device?

What Are the Advantages to Using a Software or Hot Wallet App on a Tablet or Smartphone Device?
1) You control the Private Keys, provided that you have chosen a non-custodial or self-custodial wallet.
2) They are convenient, easy to use and set up.
3) Many wallet apps will support multiple cryptocurrencies.
4) They are ideal for people who only wish to educate themselves, at minimal cost, on the subject of cryptocurrencies.
Note: Due to the nature of software wallet security, only keep a minimal amount of cryptocurrency in this type wallet app.

In other words never hold more than you are willing to lose!
5) With proper storage of your mnemonic backup phrase, you will be able to recover your wallet at any time.
6) Many software wallets will have an option to connect a hardware device which creates a secure method of using the wallet.
*Note: This combination will be discussed in a later video.

What Are the Disadvantages to Using a Software or Hot Wallet App on a Tablet or Smartphone Device?
1) The security of the software wallet will be dependant on the security provided by the tablet or smartphone device.
Tablets and smartphones are notoriously insecure devices.
For example location services may make your location available to other applications on your device.
2) Since the wallet app's Private Keys are stored in the wallet app itself, the use of cloud backup services will place the Private Key information to the cloud service, exposing your information to any hacking attempts on the cloud service.
Always be certain to turn off the cloud backup service for the wallet application.
3) Even though you have control of the Private Keys, they are stored within the wallet application on your device and therefore susceptible to any malicious software that may infect your tablet or smartphone device.
4) It is very easy to send coins with a few taps and a swipe. Best practice is to always send a minimal test amount to an address to confirm the transaction details are correct prior to sending the full amount.
5) Anyone who has access to the tablet or smartphone may also have access to the wallet application.

Biometrics are a poor substitute for strong passwords when accessing your wallet applications. Touch ID may be convenient for most applications but use strong passwords and two factor authentication when accessing financial applications.

Note: When a hardware device is connected to the software wallet app, the security is transferred to the hardware device, which is much more secure and can eliminate most of the disadvantages listed here.