Wallet Types Overview

• •Hot wallet: An app that stays connected to the internet (phone, browser, desktop). Super convenient; good for small, daily spending.
• •Cold wallet: Keys kept fully offline (hardware device or paper). Best for long-term savings.
• •Custodial wallet: A company (exchange) holds the keys for you. You log in with email/password.
• •Self-custody: You hold the keys/seed yourself (12–24 words). True ownership, but you must back it up.
• •Hardware wallet: A small offline device that stores keys and lets you approve sends with physical buttons.
• •Software wallet: A mobile/desktop/browser app that stores keys on your device.
• •Multisig: Spending requires M of N keys (e.g., 2-of-3). Removes single-point failure.

Hot (phone/browser)

• •Pros: Fast, easy, great UX, good for daily use
• •Cons: Online = bigger attack surface; keep small amounts only

Cold (hardware/paper)

• •Pros: Offline keys = strong security
• •Cons: Less convenient; costs money (hardware)

Custodial (exchange)

• •Pros: Simple logins, easy buy/sell, resets if you forget password
• •Cons: Not your keys; withdrawals can be delayed/frozen; privacy trade-offs

Self-custody

• •Pros: Maximum control, portable worldwide, censorship resistant
• •Cons: You must protect the seed; no central recovery if lost

• •Learning/small amounts: Custodial is okay to start—practice withdrawing.
• •Everyday spending: Reputable mobile wallet (self-custody), small balance.
• •Savings: Hardware wallet (cold), optionally multisig for larger stacks.
• •Families/teams/estate: 2-of-3 multisig for shared recovery and safety.

• •Write down your 12–24 word seed clearly; never photograph or cloud-store it.
• •Verify receive addresses on your hardware screen before funding.
• •Use a strong device passcode and app PIN/biometrics.
• •Update wallet apps/firmware from official sources only.
• •For large amounts, send a $5 test first, then the rest after 1–3 confirmations.

• •Preprinted seed included in a hardware box.
• •Websites/apps asking you to type your seed to “verify” or “recover.”
• •Unknown browser extensions with wallet permissions.
• •QR codes from untrusted sources (always check first/last 4 characters).