Wallets come in two main categories: hot and cold. The difference is whether they’re connected to the internet.
Hot Wallets:
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Always connected (e.g. apps, browser extensions)
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Easy to access and use
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Good for small amounts or frequent transactions
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More vulnerable to hacks
Cold Wallets:
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Offline storage (e.g. hardware wallets, air-gapped devices)
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Very secure
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Ideal for long-term storage or large amounts
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Less convenient for everyday use
A good strategy: use both. Keep a little in a hot wallet, and the rest in cold storage.
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