Hot vs Cold Wallets: What's the Difference?
Hot wallets stay connected to the internet for everyday convenience; cold wallets stay offline for maximum security. Here's how they differ — and when to use each.
Evie Nahi · Marketing Coordinator
· 1 min read
A hot wallet is connected to the internet — fast and convenient for everyday payments and trading. A cold wallet stays offline — less convenient, but far harder for attackers to reach, which makes it best for long-term storage. Most people use both: a hot wallet for spending, a cold wallet for savings.
What is a hot wallet?
A wallet whose keys live on an internet-connected device — a mobile app, desktop app, or browser extension. Hot wallets are quick to set up and ideal for active use: trading, swapping, and spending crypto at real-world businesses. Because they're online, they carry more exposure than cold storage, so they're best for the amounts you actually use day-to-day.
What is a cold wallet?
A wallet that keeps your private keys completely offline — typically a hardware device, or rarely paper. Transactions are signed offline, so the keys never touch the internet. Cold wallets are the standard for securing larger, long-term holdings.
Which should you use?
Both, for different jobs: a hot wallet for spending and everyday access, and a cold wallet for long-term savings. To spend crypto in the real world you need a hot wallet — ideally a non-custodial one, so you stay in control of your funds.
THAT is a non-custodial hot wallet built for spending crypto in the real world — download the app.
Run a business? See how to accept crypto payments.
Frequently Asked Questions
Is a hot wallet safe?+
Hot wallets are secure for everyday amounts when you use a reputable non-custodial app and protect your seed phrase. Because they're online they carry more risk than cold storage, so keep large, long-term holdings in a cold wallet.
What's the main difference between hot and cold wallets?+
Connectivity. Hot wallets are online — convenient but higher-risk. Cold wallets are offline — more secure but less convenient.
Do I need both a hot and a cold wallet?+
Many people do: a hot wallet for spending and day-to-day use, and a cold wallet for long-term savings.
Can someone steal crypto from a hot wallet?+
Your funds are at risk only if your device is compromised or you share your seed phrase. A non-custodial hot wallet keeps you in control — back up your seed phrase and never share it.