Classroom
Hot vs cold wallet
A hot wallet is connected to the internet, fast but more exposed. A cold wallet is offline (hardware), safer for long-term holding.
Category: SecurityWhere you see this on charliedesk
Related terms
Private key
The secret code that controls your crypto. Whoever knows the private key owns the coins, so it is never shared.
Seed phrase
12 or 24 words that restore an entire wallet. It is a backup of access; whoever gets it gets your crypto.
Proof of Reserves
Evidence that an exchange actually holds its clients' assets. It raises trust and lowers the risk that the exchange is misusing customer funds.
