What is a Wallet (Hot vs. Cold)?. A wallet is software or hardware that manages your keys and signs transactions. Hot wallets stay online for convenience; cold wallets keep keys offline for stronger security.
How it works
The wallet holds your private keys, derives addresses, and signs messages. Only signed transactions can move funds on‑chain.
Why it matters
Key custody defines control. If you alone hold the keys, you control the assets; if a service holds them, you rely on that custodian.
Common pitfalls
- Storing seed phrases in cloud notes or screenshots
- Connecting hot wallets to unknown sites
- Not testing a small withdrawal before moving large amounts
Quick example
You keep day‑to‑day spending in a hot wallet and long‑term savings on a hardware wallet stored safely at home.
See also
- Seed Phrase
- Multi‑Signature Wallet
- Custodial vs. Non‑Custodial
TL;DR: What is a Wallet (Hot vs. Cold)? defined in plain English with practical next steps.
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