Difference between hot and cold wallets

All types of wallets can be classified as either cold or hot. Hot wallets refer to any kind of wallet that stores assets online or that is connected to the Internet. These kinds of wallets are usually accessible through a web portal from all over the world, or from an app on your phone, and they are suitable for frequently-accessed or regularly-used funds, for example, for making payments. On the other hand, cold wallets refer to any kind of wallet that stores assets offline or that are disconnected from the internet. These kinds of wallets are stored physically on paper or on special hardware, and they're the best strategy for storing large amounts of assets or for long-term holdings.