Cold wallet vs. hot wallet (offline and online wallets)

A hot wallet is a wallet connected to the internet — a mobile app, browser extension, or exchange account. It's convenient for everyday use and allows fast transactions, but its connection to the network makes it more vulnerable to hacking attacks and malware.

A cold wallet is a wallet that stores private keys completely offline — most often in the form of a dedicated device (a hardware wallet, e.g., Ledger or Trezor) that isn't connected to the internet while holding funds. This is the safest method of storing larger amounts for an extended period, though it's less convenient for frequent trading.