Hot wallet vs cold storage
Convenience versus security for UK crypto holders.
Hot wallet (app/browser)
- + Easy everyday access
- + Free or low cost
- + Good for small amounts
- − Online = higher hack risk
- − You must trust the app
Cold storage (hardware/offline)
- + Keys kept offline
- + Better for long-term holdings
- + Less exposure to exchange failure
- − Upfront device cost
- − Seed phrase loss = permanent loss
- − Less convenient
Quick answer: Many beginners start with an exchange or hot wallet. For meaningful savings, cold storage with a backed-up seed phrase is standard good practice.