Hot or Cold Wallets? What's the Difference?

Hot wallets are cryptocurrency wallets that are connected to the internet, allowing for easy access and quick transactions. These wallets are typically used for active trading and frequent transactions because of their accessibility. Hot wallets are often provided by cryptocurrency exchanges and can be accessed through web interfaces or mobile apps.

Cold wallets, also known as cold storage wallets, are a type of cryptocurrency wallet that is not connected to the internet. These wallets are used for securely storing digital assets, such as Bitcoin and other cryptocurrencies, offline. Cold wallets are considered to be more secure than hot wallets because they are not susceptible to online hacking and cyber attacks.