Does a wallet app on your phone count as a hot wallet or a cold wallet?
First, the definition: A cold wallet is one whose private keys are generated and stored entirely offline. Hardware wallets are a common example.
The key distinction: “Cold” versus “hot” isn’t about the wallet’s form, but whether its private keys have ever been exposed to an internet-connected environment.
Many people keep $BTC , which they’re holding for the long term, in a cold wallet, and put the funds they use day to day in a hot wallet.
Don’t take photos of your recovery phrase or store it in cloud storage.
First, the definition: A cold wallet is one whose private keys are generated and stored entirely offline. Hardware wallets are a common example.
The key distinction: “Cold” versus “hot” isn’t about the wallet’s form, but whether its private keys have ever been exposed to an internet-connected environment.
Many people keep $BTC , which they’re holding for the long term, in a cold wallet, and put the funds they use day to day in a hot wallet.
Don’t take photos of your recovery phrase or store it in cloud storage.