Hot Wallet vs Cold Wallet
Plain English
Hot wallets are connected to the internet (apps on your phone/computer) - convenient but less secure. Cold wallets are offline (hardware devices like Ledger) - more secure but less convenient. It’s like keeping some cash in your pocket (hot) and some in a safe at home (cold).
Technical
Hot wallets: software wallets connected to the internet (browser extensions, mobile apps), enabling convenient access but vulnerable to remote exploits. Cold wallets: hardware devices (Ledger, Trezor) or paper wallets storing private keys offline, immune to online attacks. Best practice: hot wallets for daily use, cold storage for long-term holdings.