In this article · 4 sections
Where you keep your crypto is as important as what you buy. The core choice is 'hot' vs 'cold' — here's the honest breakdown.
Hot wallets (online)
A hot wallet is connected to the internet — exchange accounts and phone/browser wallets. Convenient for trading and small amounts, but permanently exposed to online threats and, for exchange accounts, to the platform's own risk.
Cold wallets (offline)
A cold (hardware) wallet keeps your private keys offline on a dedicated device. To move funds, you physically confirm on the device. This removes the biggest online attack surface — the standard for holding meaningful amounts.
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Which do you need?
Use a hot wallet for what you're actively trading, and a cold hardware wallet for savings you don't touch often. 'Not your keys, not your coins' — for long-term holdings, self-custody beats leaving funds on an exchange.
Secure element vs open-source
Hardware wallets differ: some use a certified secure-element chip (closed-source), others prioritise open-source firmware. Both have trade-offs — see our Ledger vs Trezor comparison.
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