Hot Wallet
A cryptocurrency wallet that is connected to the internet, enabling quick and convenient access for frequent transactions. Hot wallets include browser extensions, mobile apps, and exchange wallets. While more convenient than cold storage, they are more vulnerable to hacking and phishing attacks.
“MetaMask is a hot wallet that stays connected to the internet so you can quickly interact with DeFi protocols and sign transactions from your browser.”
Cold Storage
A method of storing cryptocurrency private keys completely offline and disconnected from the internet. Cold storage provides the highest level of security against remote hacking, phishing, and malware attacks. Methods include hardware wallets, paper wallets, and metal seed phrase backups.
Wallet
A software application or hardware device that stores the cryptographic private keys needed to access and manage cryptocurrency holdings. Despite the name, wallets don't actually store crypto — the assets exist on the blockchain. The wallet stores the keys that prove ownership and authorize transactions. Wallets can be hot (internet-connected) or cold (offline).
Hardware Wallet
A physical device specifically designed to securely store cryptocurrency private keys offline in a tamper-resistant secure element chip. Hardware wallets sign transactions internally without ever exposing private keys to an internet-connected computer, protecting against malware, phishing, and remote attacks.