While private keys are essential to cryptocurrency, as a user it is not necessary to fill out your private key each time you want to send crypto. A crypto wallet does this for you. There are dozens of wallets to choose from. And each wallet can be used for a different purpose. There are two clear distinctions between wallet types you should know, before you begin. You can either use a “hot wallet” or a “cold wallet”. Let's understand the difference and find out which one suits you the most.
A hot wallet refers to a crypto wallet that is somehow connected to the internet. These wallets are easy to set up and should mainly be used for transacting small amounts of money. Because the private keys are stored on a device that is connected to the internet, it’s sensitive to cyberattacks. Popular hot wallets:
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A cold wallet refers to a crypto wallet that is not connected to the internet. These wallets use a physical device that stores your private keys offline, making them resistant to cyberattacks. Cold wallets, also known as cold storage, are much safer for “storing” crypto assets than hot wallets.