Hot or cold? Guide to self-custodial wallets
This article provides an overview of hot and cold self-custodial wallets for crypto assets:
- Hot wallets are connected to the internet, offering convenience for frequent transactions
- Cold wallets are offline hardware devices, prioritizing security for long-term storage
- Key differences:
- Hot: Easy setup, free, vulnerable to online threats
- Cold: Offline security, physical device required, higher cost
The guide emphasizes the importance of proper security practices, regardless of wallet type:
- Store keys/phrases offline
- Never share private information
- Double-check transactions
- Keep software updated
- Use secure networks
Choose based on your trading frequency and security needs.