• Cold wallets are offline hardware wallets such as a Trezor or Ledger, which essentially act as a key to your assets stored on the blockchain, free from exploitation or hacking of your tokens.

  • Warm wallets are almost like hot wallets and the term is used interchangeably; they tend to be web-based applications or apps, such as Metamask.

  • Hot wallets is the more common term; it refers to exchange wallets that are utilised when buying/selling on an online exchange, such as Coinbase or Exodus.

  • Cold and hot wallets each have their pros and cons. Cold wallets sacrifice liquidity for security, whilst hot wallets do the reverse.

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