Wallets, Security & Custody

What is the difference between a hot wallet and a cold wallet?

A hot wallet is a crypto wallet connected to the internet, while a cold wallet stores keys offline and disconnected from any network. Hot wallets, such as mobile or exchange apps, make frequent transactions convenient but are more exposed to hacking. Cold wallets, such as hardware devices or paper backups, are harder to compromise because the keys never touch an online system. For example, many users keep small spending amounts in a hot wallet and hold larger long-term balances in cold storage. The choice reflects a balance between accessibility and security.

Crypto investments are subject to market risk and volatility. Past performance is not indicative of future returns. This is general information, not investment advice — consider your own circumstances or consult a qualified adviser before investing.