Crypto Safety Tips › Hot vs Cold Wallets
The short answer: A hot wallet lives on your phone or browser and is handy for everyday use. A cold (hardware) wallet keeps your keys offline, so a hacked computer can't sign for you. Keep serious money in a hardware wallet, use a separate hot wallet with small amounts for mints, games and new sites, and buy hardware wallets only direct from the maker.
What is a hot wallet?
A hot wallet is an app or browser extension. It is convenient and fast, but because it lives on an internet-connected device, malware, phishing and bad signatures can reach it. Use it for small, everyday amounts.
What is a cold wallet?
A cold wallet, usually a hardware wallet, keeps your private keys on a separate device. Transactions have to be confirmed on the device itself, so a hacked computer alone cannot move your funds. You can still be tricked into approving a bad transaction, so read what the screen says.
How should I split my wallets?
- Vault: a hardware wallet for long-term, serious holdings. It never connects to new sites.
- Everyday: a hot wallet for trusted apps you use regularly.
- Degen wallet: a separate hot wallet with small amounts for mints, games and anything new.
Think of it like a savings account, a current account and some cash in your pocket.
How do I buy a hardware wallet safely?
- Buy direct from the maker's official website.
- Never buy second-hand.
- Never use a device that arrives with a seed phrase already written down. Set it up yourself, and let it generate a new phrase.
- Only download its companion app from the official site or app store.
Quick questions
Is a hardware wallet 100% safe?
No. It protects your keys from malware, but you can still approve a malicious transaction or leak your seed phrase. Read everything before you confirm.
Do I need a hardware wallet for small amounts?
Not necessarily. For small amounts a hot wallet is fine; the bigger the amount, the more a hardware wallet makes sense.
The How SAFU are you? check asks whether your serious money is in a hardware wallet. See how you score.
Keep learning
General safety information, not financial or legal advice. HooTang Clan has no token, and nothing on this page is a reason to buy anything. Report fraud to Action Fraud, or Police Scotland on 101.