Hot Wallet vs. Cold Wallet: What's the Difference and Which is Better?

“Hot wallet vs. cold wallet” remains a popular topic of discussion in the crypto space, and for good reason. Both have their unique purposes and advantages. In this article, we’ll break down the key differences between these two crypto wallets and help you understand how each can be useful.

We’ll cover what hot and cold wallets are, give examples, and explain how they work. This wallet comparison has much to unpack, so let’s dive right in!

Types of Crypto Wallets

“Hot” and “cold” refer to two different methods of storing crypto assets. These labels mainly indicate the wallet’s connection status to the internet.

A hot wallet is a digital crypto wallet requiring an internet connection. In contrast, a cold wallet is a physical device used to store crypto offline. Unlike hot wallets, cold wallets are not connected to the internet, significantly reducing the risk of hacking and technical failures.

Read the full article on the Differences Between Hot vs. Cold Wallets on BeInCrypto Indonesia.