#CryptoSecurity101 The difference between hot and cold wallets lies in their level of internet connectivity and, consequently, the balance between convenience and security.

Hot Wallets

What it is:

Wallets that are constantly connected to the internet. They are convenient for active use.

Examples:

Mobile wallets (Trust Wallet, MetaMask, Rabby)

Desktop wallets (Exodus, Electrum)

Web wallets (Binance, Coinbase Wallet)

Browser extensions

Advantages:

Convenience and speed of access

Suitable for daily transactions and DeFi

Ease of installation and use

Disadvantages:

Vulnerable to hacking, phishing, and viruses

Dependent on device security

Best use:

Storing small amounts for quick access

Using in DeFi, Web3, NFT, and trading

Cold Wallets