Hot and cold wallets are special terms used for digital wallets that allow you to send, receive and store your digital currency. All sub-categories are based on these two parent wallets. The primary difference between the two is internet connectivity and types of transactions. Another differentiating factor is either you want to carry out day-to-day transactions or want a wallet for long-term holding of your digital currency. For instance, you want to get a dash coin wallet. Now you have to decide you need it as a hot or cold wallet. Hot wallets need the internet connectivity while the cold wallets don’t have any such need. This is why hot wallets face the risk of security and privacy breach bur have a user-friendly interface. On the contrary, cold wallets are used to store cryptocurrencies offline and therefore ensures much more protection. Cold wallets function like a vault, or you can say a real-world safe; you cannot carry it with you for small transactions on a daily basis but long-term funds storage. Whereas, you can use hot wallets just like your leather wallet for everyday transactions. The majority of the people prefer hot wallets as they are connected to the internet – ensuring easy and instant access. For all these reasons, people are more likely to get hot dsh wallet. And, then there are multi-currency wallets. As the name implies, these crypto wallets allow you to store different types of currencies all at one place. So, the best option is to get a hot wallet supporting all your preferred cryptocurrencies. For example, Exodus. Major Types of Crypto Wallets: