Hot Wallet
Connected to Internet
Software wallets that are always online. Convenient for daily trading but more vulnerable to hacks.
Cold Wallet
Offline Storage
Hardware devices that store your keys offline. Maximum security for long-term holdings.
How Each Wallet Type Works
Your Phone
Internet
Hardware Device
Air-gapped
Hot wallets are always connected - convenient but exposed to online threats
Types of Wallets
Hot Wallet Types
Mobile Wallet
Apps like Trust Wallet, MetaMask Mobile
Web Wallet
Browser extensions like MetaMask, Rabby
Exchange Wallet
Custody wallets on Binance, Bybit, OKX
Cold Wallet Types
Hardware Wallet
Physical devices like Ledger, Trezor
Paper Wallet
Printed private keys (not recommended)
Steel Backup
Metal seed phrase backup for fire/water protection
Detailed Comparison
| Feature | Hot Wallet | Cold Wallet |
|---|---|---|
| Security | Medium | Maximum |
| Convenience | High | Low |
| Transaction Speed | Instant | Slower |
| Cost | Free | $50-$200 |
| Hacking Risk | Higher | Near Zero |
| Best For | Daily trading | Long-term storage |
Essential Security Tips
- • Never share your seed phrase with anyone - not even "support" staff
- • Store your seed phrase offline, never in photos or cloud storage
- • Use a hardware wallet for holdings over $1,000
- • Keep trading funds on exchanges, long-term holdings in cold storage
Which Wallet Should You Choose?
Use Hot Wallet When:
- You trade frequently (daily/weekly)
- You need quick access to funds
- You're holding smaller amounts
- You interact with DeFi regularly
Use Cold Wallet When:
- You're holding long-term (HODLing)
- You have significant value (>$1,000)
- Security is your top priority
- You don't need daily access
Key Takeaways
Hot wallets = convenient but less secure. Cold wallets = secure but less convenient
The best strategy is using BOTH: hot for trading, cold for savings
Never store your seed phrase digitally - write it on paper or metal
Hardware wallets like Ledger and Trezor are worth the investment for serious holders
Recommended Wallets
Trusted options for both hot and cold storage
