A hot wallet and a cold wallet are two different types of cryptocurrency wallets.
A hot wallet is a software-based digital wallet that is connected to the internet. This type of wallet is designed for frequent use, as it allows easy access to funds for transactions. Hot wallets are often used by traders or individuals who frequently buy, sell, and transfer cryptocurrencies. However, since hot wallets are connected to the internet, they are more vulnerable to online threats such as hacking or malware attacks.
On the other hand, a cold wallet is a hardware-based digital wallet that stores cryptocurrencies offline. Cold wallets are designed for long-term storage and are not meant for daily use. They offer added security because they are not connected to the internet, making them immune to online threats. However, accessing funds from a cold wallet can be a more involved process, as it requires physically connecting the device to a computer or mobile device.
In summary, hot wallets are more suitable for everyday use and convenience, while cold wallets are best for long-term storage and increased security.
