Hot wallet vs cold wallet.
In plain English
Hot and cold describe whether a crypto wallet is online. A hot wallet, such as a phone app or an exchange account, is connected to the internet, so it is convenient for buying, selling, and spending, but its keys are more exposed to hacks and malware. A cold wallet keeps the keys offline, often on a dedicated hardware device or even paper, so an online attacker cannot reach them. Many people use both: a small amount in a hot wallet for everyday use and the bulk in cold storage. The tradeoff is convenience against security.
01Why it matters
Where you keep your keys is the single biggest factor in whether your crypto can be stolen remotely, so the hot-versus-cold choice is really a security decision.
02The math, step by step
You keep 200 dollars of crypto in a phone app for quick trades and 5,000 dollars on an offline hardware device. If your phone is compromised, only the 200 dollars is exposed; the offline funds stay out of reach.
03What this is NOT
Hot and cold are NOT types of coins. They describe how a wallet stores keys, online or offline, not what is inside it.
04Receipts
Every figure on this page is sourced to a primary document. Tap to open the original.