Software encrypted wallets, also known as hot wallets, can connect directly to the Internet. For example, when you create an account and deposit funds on MEXC Global Exchange, you are actually depositing funds into MEXC Global Exchange's hot wallet. The majority of the user's funds will then be transferred to cold wallets for safekeeping by <a target="_blank" href="https://www.mexc.com/">MEXC Global Exchange</a>.
<img src="https://cdn.hashnode.com/res/hashnode/image/upload/v1653650716390/oV1c9ulI7.jpg" alt="比特币.jpg" />
A cold wallet is one that is not linked to the Internet and can therefore be used offline. Because a cold wallet only stores keys on physical media, there is no way to transfer money if there is no internet connection. This increases the difficulty of hacking and stealing digital assets significantly. Cold wallets are a more secure method of "saving" digital assets such as users' cryptocurrency.
As a result, the cold wallet is better suited for long-term investors, whereas the hot wallet is better suited for beginners who only want to buy a small amount of cryptocurrency. If there is a large amount of cryptocurrency (more than a few million USDT), cold wallets are still recommended.

Software encrypted wallets, also known as hot wallets, can connect directly to the Internet. For example, when you create an account and deposit funds on MEXC Global Exchange, you are actually depositing funds into MEXC Global Exchange's hot wallet. The majority of the user's funds will then be transferred to cold wallets for safekeeping by [MEXC Global Exchange](https://www.mexc.com/).


![比特币.jpg](https://cdn.hashnode.com/res/hashnode/image/upload/v1653650716390/oV1c9ulI7.jpg align="left")


A cold wallet is one that is not linked to the Internet and can therefore be used offline. Because a cold wallet only stores keys on physical media, there is no way to transfer money if there is no internet connection. This increases the difficulty of hacking and stealing digital assets significantly. Cold wallets are a more secure method of "saving" digital assets such as users' cryptocurrency.

As a result, the cold wallet is better suited for long-term investors, whereas the hot wallet is better suited for beginners who only want to buy a small amount of cryptocurrency. If there is a large amount of cryptocurrency (more than a few million USDT), cold wallets are still recommended.

What are Hot Crypto Wallets VS Cold Crypto Wallets？