Hot Wallet vs Cold Wallet

Quick answer

Use a hot wallet for daily sending, swapping, and dapps. Use cold storage for funds you don't plan to move often. Many people use both. My Wallet works as a hot wallet, and you can also create an offline wallet in it or connect a Ledger device.

What a hot wallet is

Keys live on a phone, computer, or browser that goes online.
Fast to use for transfers, swaps, and dapps.
Exposed to online risks like phishing and malware.

What a cold wallet is

Keys are generated and kept offline.
Common forms: hardware wallets and air-gapped devices.
Slower for daily use, but limits online exposure.

Side-by-side

Convenience: hot is quicker; cold takes more steps.
Online exposure: hot is connected; cold stays offline.
Best for: hot for daily activity; cold for long-term holdings.
Backup: both need a seed phrase stored safely.

Creating an offline wallet in My Wallet

Start creating a new wallet as usual.
Turn off internet (airplane mode, Wi-Fi and mobile data off).
Finish creating the wallet. Keys are generated on your device only.
Back up the seed phrase right away.

Funds sent to it arrive on-chain as usual. The balance updates once the app goes online again. See How to create an offline wallet?.

Using a Ledger with My Wallet

Choose Import from Ledger and connect by USB or Bluetooth.
Verify the address shown matches your Ledger.
Your Ledger recovery phrase should only be used on the Ledger itself.

A practical setup

Keep a small balance in a hot wallet for daily use.
Keep larger holdings in an offline wallet or hardware wallet.
Move funds between them when needed, testing with a small amount first.

Risks that apply to both

A seed phrase shared with anyone gives full access.
Fake apps and phishing sites target both types.
Transfers can't be reversed.

Start with a secure wallet

Download My Wallet to explore crypto with self-custody—you hold the keys.

FAQ

Is a hot wallet unsafe?

Not if you follow good habits: back up your seed phrase offline, lock the app, and only sign requests you started.

Do I need a hardware wallet?

Not necessarily. An offline wallet is another way to keep keys away from the internet.

Can I receive funds to a cold wallet?

Yes. Receiving only needs the address. Funds arrive on-chain even while the wallet is offline.

What happens if my hardware wallet breaks?

You can restore it with its recovery phrase. Keep that phrase backed up offline.