Chapter 2

Hot vs Cold Storage

Hot wallets keep keys on internet-connected devices. They are fast for trading, minting, and everyday dApp use — but every online device is a potential attack surface.

Cold wallets store keys offline, on hardware or paper, and only connect when you need to sign. The tradeoff is friction: moving funds takes more steps, but exposure to malware and phishing drops sharply.

A common pattern is a hot wallet for daily use and a cold wallet for anything you would regret losing in a single compromised click. The boundary between them is a security decision, not a product category.