Cold vs Hot Wallets: Where Should Your Coins Live?

Definitions Hot wallet: an online wallet (mobile app, browser extension, exchange account) ready to use anytime. Cold wallet: keys kept offline (hardware wallet, paper), never connected.

Risk comparison Hot wallets face phishing, malicious approvals, device malware, and exchange hacks. Cold wallets are largely immune to online attacks but must be protected against loss, damage, and seed-phrase leaks.

Tiered storage Think "cash + savings": keep daily-trade and small amounts in a hot wallet or exchange; keep long-term, untouched size in cold storage. A common split is 90% cold, 10% hot.

Key discipline Write the seed phrase by hand only — never photograph, screenshot, or upload it. Buy hardware wallets from official channels. Anything asking you to "enter your seed on a website" is a scam.

See also hardware wallet setup, Seed Phrase Security: 12 Words Equal All Your Assets, Self-Custody Guide: When to Move Coins Off the Exchange