Choosing which crypto wallet is best for you will depend on how safe you want your assets to be and how much trading you want to do.

People who invest large sums of money tend to opt for a cold wallet because it is safer, while people who are involved in investing are probably better off not spending too much money and using a warm one. wallet.

Security

When it comes to cryptocurrency, security is probably the most important thing to consider. You want your digital assets to be as safe as possible from hackers and fraudsters. The best defense from a hacker is offline, so a cold wallet is the safest route to take. As a physical object, cold wallets can still be lost or stolen, so it is important to keep your cold wallet safe.

If you lose your wallet, you can access your crypto by using your seed word. Seed words are randomly generated combinations of words that can be used to recover or access your account in the event that you don’t have your cold wallet or your hot wallet is disconnected. You are assigned a seed phrase, or recovery phrase, to set up your wallet.

Fees

While blockchain transactions may incur fees, hot wallets like Exodus are generally free to use, while cold wallets on this list cost up to $149.

Ease of use

Hot wallets are usually easier to use than cold wallets, simply because you don’t have to take an extra step to access them.

Hot wallets are connected to your browser through an extension on your phone if you are using a mobile wallet or through software downloaded to your computer. They can be accessed at any time, while cold wallets require a physical dongle connected to your computer.

Trading volume

If you plan to do a lot of trading, you need a wallet with advanced features. Some wallets support a lower number of digital assets, so you’ll want to opt for one that serves a wider range of coins. You should also be aware of any wallet restrictions around trading. A cold wallet is the better choice if you want to trade and store higher volumes of digital currency.