🧠 What are hot wallets and cold wallets? Explained in a way a 5-year-old can understand
📱 A hot wallet is like the wallet you keep on your phone.
→ Fast, convenient, always connected to the internet.
→ But because it’s always online, hackers can easily “reach in” to take your assets if you’re not careful.
🧊 A cold wallet is like storing money in a safe, hidden well in a cabinet.
→ Not connected to the internet.
→ To use it, you need to plug it into a device or unlock it separately.
→ Very safe, but a bit of a hassle for each transaction.
📌 Use a hot wallet for quick daily transactions,
Use a cold wallet to hold large, long-term assets.
🧠 In summary:
Hot wallets are convenient → but easy to hack
Cold wallets are slow → but very safe
