You will hear reference to hot and cold wallets. The term "lukewarm" has also been applied, though it doesn't seem to have caught on as yet — it does help to understand the framework around wallet security.
These terms originally related to whether your wallet was online (hot) or not (cold). The distinction has become somewhat less well-defined with the proliferation of computer-based wallets such as MetaMask and Phantom, which have varying degrees of security. The introduction of hardware wallets such as Ledger and Trezor have further blurred the boundaries. Ledger and Trezor are a hybrid model, in which transactions are signed offline whilst the wallet is connected online — a lukewarm solution.
Although these terms are no longer definitive, they still provide a very useful framework to think about the storage option most suitable for you and your crypto investments. In general, the hotter your solution the easier it is to use, but it is less secure. The colder your wallet, the more difficult it is to use, but it is more secure.
The next module will explore different categories of wallets, each with varying degrees of hotness. Our number one recommendation is the Ledger wallet, preferably the Nano X (for Bluetooth capability) — though the Nano S is equally robust and much cheaper.
Please feel free to contact us with any questions.