Hot wallet: An online wallet, easy to use, and convenient for quick access to your crypto. However, it’s connected to the internet, making it more vulnerable to hacks and other risks.
Cold wallet: An offline wallet, keeping your crypto safer since it’s disconnected from the internet. It’s great for long-term storage but less convenient for daily use.
Custodial vs. Non-Custodial Wallets
Custodial Wallet: A third party (like an exchange) controls your private keys. You trust them to keep your crypto safe, but you don’t have full control over your funds.
Non-Custodial Wallet: You control your private keys. This means you’re in charge of your security. If you lose your keys, you lose your crypto, so it’s essential to be careful.
Best wallets for different strategies
Long-term Investment: Use a cold wallet like Ledger Nano or Trezor Model T. These are ideal for holding crypto securely over time.
The Ledger Hardware wallet keeps your crypto safe and under your control. Get this if you actually have a computer/laptop or you can get a USB connector to your device.
Trezor, a cold wallet like Ledger, offers the Trezor Model T. It allows direct access to third-party exchanges on its website interface, beneficial for those with large crypto holdings.
Short-Term Investments: A hot wallet like Exodus or Trust Wallet is more practical for frequent transactions. Just ensure it’s non-custodial to retain control over your funds.
Although there are many hot wallets that will only accept / support certain cryptocurrencies. So make sure you find a wallet that supports the crypto you are wanting to invest in. You can find what is supported by searching “Name of wallet + Supported coins”.
Exodus (Best for Beginners)
Trust Wallet (Best for holding Alt coins)
Here are some trusted hot wallets
Wrap up: Choose What Works for You
Your choice depends on your strategy:
HODL (Hold long-term): Cold wallet for maximum security.
Active Trading: Hot wallet for easy access and transactions.
Always make sure to keep your recovery seed phrase safe and secure, no matter which wallet you choose.