What is a hot wallet & a cold wallet?

Hot wallets are essentially online software used to store and trade your crypto assets, while cold wallets are dedicated offline storage devices that do the same without ever connecting your private key or recovery seed to the internet.

What is a hot wallet & how does it work?

For a user, the hot wallet is the interface for using and storing your cryptocurrency keys. They are different from cold wallets, which are devices or applications that store your private keys offline—these can be an application on a device that doesn't connect to the internet or a device that looks like a USB thumb drive that stores your keys.

How do I choose a cold or hot wallet?

You can choose a cold or hot wallet depending on your preference. A cold wallet is a specially built hardware device that you can use to store cryptocurrencies. A hot wallet, on the other hand, is connected directly to the cloud infrastructure and provides a plethora of features that are not available in hardware (cold) wallets.