Types of cryptocurrency storage

A hot wallet is always connected to the Internet. Such wallets greatly increase the simplicity of interaction with the market, but are not the most secure way of storage, because the private key belongs to the custodian.

Hot wallets include Binance, Huobi, ByBit, KuCoin, and others.

A warm wallet is connected to the Internet for all possible transactions, only when the user needs it. This type is widely used in the decentralized finance sector.

Storing funds in this way is safe as long as the guidelines for interacting with the seed phrase are followed.

Warm wallets include MetaMask, Coin98, Phantom, Trust Wallet, and others.

A cold wallet is a type of storage in which the crypto wallet is not connected to the Internet. To use the assets, you need to extract the private key and use it in a warm or hot wallet. Most often, this is a special device that looks like an ordinary flash drive.

Cold wallets include Ledger, Trezor, SecuX, Tangem, and others.