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UK guide · Updated 3 November 2026Cold wallet vs hot wallet
A hot wallet is connected to the internet. A cold wallet keeps your keys offline. Most people end up using both, a hot wallet for spending money and a cold wallet for savings. Here is how to decide.
What the words mean
A hot wallet is an app on your phone or computer. The keys live on a device that is online, which makes it quick and handy but more exposed to malware, phishing and theft of the device.
A cold wallet keeps the keys on something that never touches the internet directly, usually a hardware wallet. You approve payments on the device itself. It is slower to use but much harder to steal from remotely.
An exchange account is neither. The exchange holds the keys for you. That is called custody, and it means you rely on the firm. Read is my Bitcoin safe on an exchange? for what that means in the UK.
Side by side
| Question | Hot wallet | Cold wallet |
|---|---|---|
| Where are the keys? | On your phone or computer | On an offline device |
| Main risk | Malware, phishing, a lost or stolen phone | Losing the device and the backup, or a bad setup |
| Good for | Small amounts you spend | Savings you plan to keep |
| Speed | Fast | Slower, you need the device |
| Cost | Usually free | You buy a device |
Which one you need
- If you hold a small amount to learn and spend, a well known hot wallet app is fine.
- If you hold an amount you would be upset to lose, use a cold wallet. A common rule of thumb is: if it is more than you keep in your actual wallet, consider cold storage.
- If you hold a large amount for many years, think about a hardware wallet plus a good backup plan, and read our inheritance guide.
The simple split
Keep savings on a hardware wallet and a small spending pot on a phone app, like a current account and a savings account. Compare devices in our hardware wallet guide or read single reviews of Trezor, Ledger, Jade and BitBox02.
Common mistakes
- Taking a photo of the recovery words. That turns a cold wallet hot.
- Typing the recovery words into a website, an app or a "support" chat.
- Buying a hardware wallet second hand.
- Never testing the backup. Follow how to back up a seed phrase.
Questions people ask
Is a cold wallet safer than a hot wallet?
For savings, yes. The keys stay offline, so remote attacks are much harder. You still need a safe backup of the recovery words.
Is an exchange a hot wallet?
No. On an exchange the firm holds the keys for you, so it is not your wallet at all. That is custody.
Can I move Bitcoin from a hot wallet to a cold wallet?
Yes. Send it to a receive address shown on your hardware wallet, starting with a small test amount.
Not financial advice. General education only. Do your own research.