Choosing which crypto wallet is best for you will depend on how safe you want your funds to be and how much trading you intend to do.
People who are investing large sums of money will likely opt for a cold wallet as it is more secure, while people who are into investing will probably be okay with not spending the extra money and using a warm wallet.
Security
When it comes to cryptocurrencies, security is perhaps the most important thing to consider. You want your digital assets to be as safe as possible from hackers and fraudsters. The best defense against a hacker is to go offline, so a cold wallet will be the safest route. Being a physical object, cold wallets can still be lost or stolen, so it is important to keep your cold wallet safe.
If you lose your wallet, you can still access your crypto by using your seed phrase. Seed phrases are randomly generated word combinations that can be used to recover or access your account in case you don't have your cold wallet or your hot wallet shuts down. You are assigned a seed phrase or recovery phrase after setting up your wallet.
Fees
While blockchain transactions can come with fees, hot wallets like Exodus are usually free to use, while the cold wallets on this list cost up to $149.
Ease of use
Warm wallets are usually easier to use than cold wallets, simply because you don't have to take an extra step to access them.
Hot wallets are connected to your browser through a phone extension if you use a mobile wallet or through software downloaded to your computer. They can be accessed at any time, while cold wallets require a physical key to be linked to the computer.
Trading amount
If you plan to trade a lot, you'll need a wallet with advanced features. Some wallets support a smaller number of digital assets, so you'll want to opt for one that accommodates a wider range of coins. You will also need to be aware of any restrictions the wallet has around trading. A cold wallet is a better choice if you intend to trade and store large amounts of digital currency.