Glossary / Hot and cold wallets

Hot and cold wallets

A hot wallet is connected to the internet (an app or browser extension); a cold wallet keeps keys offline, usually on a hardware device.

Why it matters

Keep large long-term holdings cold and only spending money hot.

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Related terms

Self-custodySelf-custody means you hold your own keys and therefore your own coins, instead of trustin…Seed phraseA seed phrase is the 12 or 24 words that can restore a crypto wallet. Whoever has it contr…

Written by the VaultX AI team. Educational only, not investment advice.

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