Cold Wallet Vs. Hot Wallet: What’s The Difference?

Stellabelle
5 min readApr 9, 2017

You may have heard about cold and hot digital wallets but do you know how they are different from each other?

The simplest way to describe the difference between a cold wallet and a hot one is this: hot wallets are connected to the internet while cold wallets are not. Most people who hold digital assets have both cold and hot wallets because they are designed for different purposes.

Hot wallets are like checking accounts while cold wallets are similar to savings accounts.

People who have digital assets keep a small amount of money in their hot wallets for purchasing stuff. They keep the vast majority of their digital coins in their cold wallet.

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Q: Why do people keep most of their digital coins in a cold wallet?

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