As these names imply, hot wallets are well-suited to frequent, intensive use. Cold wallets are the opposite. They’re less convenient to use and tend to be left for long periods of time.
One of the oldest kinds of crypto wallets is called paper wallet. They’re a form of cold storage that uses a paper wallet generator app to create QR codes, which act as keys, on physical pieces of paper.
Hardware wallets are another type of cold wallet, and they’re the most widely used today. These wallets take the form of physical electronic devices, often resembling a USB stick, that you can store your keys on.
Out of all the hot wallets available, software wallets dominate the market. This kind of wallet requires installing an app on your smartphone (in the case of mobile wallets) or a software application on your computer (in the case of desktop wallets).