There are 2 groups of wallets –
Hot wallet: This type is any wallet that is accessible online. So CoinBase platform or CoinBase wallet, Binance (it a platform that joining NFT soon), Phantom, and any other online wallet is a hot wallet.
It is usually the easiest to trade with, access to, and withdraw money on demand.
Nevertheless, hot wallets are more breachable – So if you use one – be very careful (don’t log in to a non-secure or public wi-fi, for example. dont open fishy links, and dont update unless it’s from the AppStore.).
Cold wallet: Cold wallet is an offline physical wallet. It can be a Ledger (a disk-on-key that supports blockchain technology) or even a piece of paper with numbers and letters.
It is very safe and usually can not be breached. However, there is no way of restoring it if it’s lost (have you seen the chapter of Big Bang Theory?).
Usually, it depends on whether you are in it for the long or short term-
So If bought an NFT (Or crypto) and want to sell – use a Hot wallet. If you’re going to keep it for a while, keep it in a cold wallet.
“hot wallets are more breachable – So if you use one – be very careful ”
