Digital wallets are essential to using cryptocurrencies. When it comes to cryptocurrency, there are two main types of digital wallets: Hot Wallet vs. Cold Storage.

What's the difference? [1/3]

Cold Storage: When cryptocurrency is held in a reserve offline, this is known as “cold storage.” Cold storage wallets are commonly used to store large amounts of a crypto, like bitcoin, for security. These reserves are safer from hackers as they don’t exist on a web server.[2/3]

Hot Wallet: A “hot wallet” is a cryptocurrency wallet that is online. Any cryptos in a hot wallet are not in cold storage. Hot Wallets make trading easier and more efficient. Using a digital money platform like Uphold can be a huge benefit.[3/3]