The main type of cold wallet is a hardware wallet. As such, cold wallets are a good way to store large amounts of crypto. They are kept offline in what's known as cold storage, making them harder to hack.

Cold walletĬold wallets are the most secure way to keep your cryptocurrency. You may also come across a mobile wallet that works on your cell phone and a desktop wallet which gets installed on your computer. The most common is probably a software wallet, which is often a browser extension like Metamask. They are great for small payments and are often the first type of non-custodial crypto wallet investors encounter.

But that convenience comes at the cost of security - anything that's online is more vulnerable to security breaches. Hot wallets are online, making them extremely convenient and easy to use. There are several different types, but broadly speaking, we can divide them into hot wallets that are connected to the internet and cold wallets that are kept offline. If you're reading this article, you may be considering getting a non-custodial wallet.

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