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Explain the Difference between ‘Hot Wallet’ and ‘Cold Wallet’ Custody Solutions

Hot wallets are online, convenient, and higher risk; cold wallets are offline, secure, and less accessible for immediate transactions.
Greeks.Live13.11.25

Explain the Difference between ‘Hot Wallet’ and ‘Cold Wallet’ Custody Solutions.

A 'hot wallet' is a cryptocurrency wallet connected to the internet, allowing for quick, easy access to funds for trading or transfers. While convenient, it carries a higher risk of hacking.

A 'cold wallet' is an offline storage solution (e.g. a hardware device or paper wallet), making it highly secure against online threats but less accessible for immediate transactions. Institutions typically use a combination, with the majority of assets in cold storage.

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