Hot Wallet
A hot wallet is a pure software digital asset wallet. It is designed to facilitate immediate transactions and is ideal for regular trading and payments.
Pros:
Quick access and ease of use.
Suitable for frequent transactions.
Comes with a user-friendly interface.
Cons:
Might be vulnerable to online threats like hacking, malware, and phishing attacks.
Depends on the security protocols of external platforms, especially if hosted by exchanges (custodial wallets/storage).
Examples: Software wallets on a smartphone or computer (e.g., MetaMask, WalletConnect wallets).
Cold Wallet
A cold wallet, sometimes known as offline storage, is a digital currency holder that isn't consistently linked to the internet. It is primarily used to securely store large amounts of assets for extended periods.
Pros:
Provides enhanced security against online threats.
Independent of third-party failures, like exchange collapses.
Ideal for long-term storage of digital assets.
Cons:
Not as immediately accessible or user-friendly as hot wallets.
There's a risk of loss if the physical medium (like a paper or hardware device) is misplaced or damaged.
Examples: Hardware wallets (e.g., Ledger, Trezor); Paper wallet; Engraved metal backup (Cryptosteel, Billfodl).
For the best combination of security and smooth user experience, we can recommend storing your seed phrase e.g. on the engraved metal backup, and using a hardware wallet paired with MetaMask to interact with Primex. For more details, please refer to How to secure my seed phrase and How to connect your Ledger hardware wallet to Primex.