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If the drive is visible to the Operating System then it can be used like any other drive. But I suspect the question is actually "How well with this work compared to a proper installation" and that question can't be answered without much more detail of the hardware involved and what you expect to be doing. For instance, Surveyor or driver, content testing or running large routes, multiplayer or single, etc.Is this possible. ?
It will work just fine, be sure to take that the drive letter assigned remains the same, that is the only thing to consider worrying about, which should really be fine as long as you plug it back in the same port every time, or never unplug it.
I am thinking you were not using an external SSD but you were using a regular spinning platter drive. SSDs tend to not heat up in the external units.Yes it does work and I've done this when traveling because my laptop doesn't have a big enough internal drive to handle my Trainz data. The external drive contained a duplicate of my database at the time, and off on the road I went. It worked well, but the USB3 interface was still a lot slower than the internal SATA interface that is used normally. It wasn't bad and it suited my purpose perfectly while on the road. The drive also got quite warm in the process, but for the short time I used it for it did no harm.
I am thinking you were not using an external SSD but you were using a regular spinning platter drive. SSDs tend to not heat up in the external units.