When it comes to crypto assets wallets, many people's first reaction is "a place to store coins." However, that's not the case — what the wallet truly stores is your Private Key, the string of characters that controls access to Blockchain assets.

First, let's clarify a fact: your tokens do not reside in the Wallet; they are always lying on the Blockchain ledger. The Wallet is just helping you keep the key that opens the door.

There are basically two types of wallets on the market: **hot wallets and cold wallets**. How to choose? It depends on how you use them.

Hot wallets are those that are always online – mobile apps, browser extensions, exchange accounts. The biggest advantage is that they can be used at any time: transfers are instant, trades are quick, and operations are simple. The drawbacks are also obvious: being online means being exposed to hackers, which increases security risks. They are suitable for holding small amounts of funds that you need for daily use.

Cold wallets take a different approach - isolating the network through hardware devices or offline methods, locking the private keys in the physical world. This design makes it nearly impossible for attackers to target, with security far surpassing that of hot wallets. However, the cost is a compromised user experience: every transaction requires connecting the device and confirming the signature, and frequent operations can be frustrating. They are more suitable for storing large assets held for the long term.

In fact, many veterans mix and match: **cold wallets as safes, hot wallets as wallets**. Large assets sleep in cold wallets gathering dust, while daily consumption and high-frequency trading go through hot wallets.

There is no standard answer for choosing a wallet. High transaction frequency and small amounts? A hot wallet is sufficient. Large amounts of coins and infrequent transactions? A cold wallet is more secure. Understanding your own needs is the key to finding the most suitable solution.