What is a Wallet? Hot vs. Cold – Which One Should You Use?
So you’ve bought crypto — now where do you keep it? 🤔
Just like cash, your digital assets need a wallet. But not all wallets are the same.
Let’s break down the two main types: Hot Wallets vs. Cold Wallets.
☁️ Hot Wallets (Connected to the Internet)
Examples: Binance account, Trust Wallet, MetaMask
✅ Pros:
Easy to accessGreat for frequent trading or DeFi useFree and simple to set up
⚠️ Cons:
More vulnerable to hacks (if not secured)You may not fully control your keys (on exchange wallets)
🔐 Best for: Small amounts & active trading
🧊 Cold Wallets (Offline Storage)
Examples: Ledger, Trezor
✅ Pros:
Super secure — your private keys never touch the internetFull control over your assetsIdeal for long-term holding
⚠️ Cons:
Cost money ($50–$100)Slower to access funds
🔐 Best for: Storing large amounts or HODLing
💡 Quick Tip:
Use the "90/10 Rule":
10% in a hot wallet (for trading/spending)90% in a cold wallet (for safekeeping)
🔑 Remember:
Not your keys, not your crypto.
If you don’t control your private keys, you don’t fully own your assets.
🛒 Want peace of mind? Invest in a hardware wallet today.