Everything you need to know about different crypto wallets and their pros and cons.

Need a crypto wallet that gives you full control of your assets? You can download Exodus here.

Crypto wallets allow you to store, send, and receive cryptocurrencies.

They can be described as either hot, cold, or centralized:

Assets are not stored in a wallet when using one. Instead, wallets use your secret recovery phrase and private keys to access and interact with your funds on the blockchain.

To learn more, visit the article: Where are blockchain assets stored?

Exodus is a software wallet, also referred to as a hot wallet.

Exodus Mobile, Desktop, and Web3 Wallet are all software wallets that can be installed on a desktop or mobile device. Exodus is a hot wallet because its data is stored on a device that can access the Internet.

For added security, you can connect cold wallets, such as Trezor or Ledger hardware wallets, to Exodus. For more on how to do this, visit:

Hot wallets, also known as software wallets, are any wallets used on devices that connect to the internet.

Because a hot wallet can connect to the internet, you can quickly access your funds and create new transactions. This makes them great for everyday use.

Compared to cold wallets, hot wallets are considered less secure because their online exposure increases their vulnerability to malware, hackers, and online threats.

If you'd like to learn more about how to keep your crypto as secure as possible, visit: How do I keep my money safe? How to store cryptocurrency safely.

A cold wallet is a crypto wallet that can't access the internet.

With cold wallets, the secret recovery phrase is generated offline, keeping it safe from online threats. Because the secret recovery phrase is never exposed to the internet, cold wallets are more secure than hot wallets.

Compared with a hot wallet, it can be more difficult to access the funds on a cold wallet because you need to connect it to another device, like a computer.

Hardware wallets like Trezor and Ledger are cold wallets. They are small hardware devices that store your secret recovery phrase offline. To access the funds on a hardware wallet, you need to connect it to another device, like a computer or mobile device.

A hardware wallet provides top-level security because the secret recovery phrase and private keys never leave the wallet. This means the information that controls access to your funds is never online, protecting it from malware, hackers, and online threats.

To connect a Trezor to Exodus Desktop or a Ledger to Exodus Mobile, visit:

Paper wallets are generated offline and the secret recovery phrases, private keys, and addresses are written down and stored on paper. By generating the secret recovery phrase offline, the wallet is protected from online threats.

The downside is that funds stored with a paper wallet are not readily accessible, because you need to import the paper wallet into a hardware wallet or hot wallet to access your funds.

If you import your paper wallet to a hot wallet, it is no longer considered a true cold wallet because the secret recovery phrase and keys have been exposed to an online environment.

As with any wallet where you hold the keys, theft could be an issue if someone gains access to the paper wallet. Protecting your paper wallet from damage, such as paper deterioration over time and natural disasters like fires, is essential. However, using more robust materials can prevent these issues.

Centralized wallets like crypto exchanges are wallets where you do not control or have access to the secret recovery phrase or private key. Instead, they are managed by a third party.

With centralized wallets, you usually create an account with a username and password. Often, this information is stored on centralized servers, which makes this type of wallet particularly vulnerable to hacks and other exploits.

Centralized wallets are easy to access and often require no installation. Many offer advanced options for buying, selling, and trading. However, they don't provide control over your private keys or secret recovery phrases, meaning you rely on a third party to hold and protect your assets.

The risk of keeping crypto in a centralized wallet is that if the platform gets hacked, misuses funds, or goes bankrupt, you may be unable to recover your funds.