Explain the Difference between a ‘Hot Wallet’ and a ‘Cold Wallet’

A 'hot wallet' is a cryptocurrency wallet that is connected to the internet, such as a mobile app or desktop wallet. It offers convenience for frequent transactions but is more vulnerable to online attacks.

A 'cold wallet' (or cold storage) is an offline wallet, like a hardware device or a paper wallet, that is never connected to the internet. Cold wallets offer superior security against online theft and are typically used to store large amounts of funds.