image source: google image

A Crypto wallet is comparable to your bank account(this is why banks are so afraid of it taking over). You can use a Cryptos wallet to store, send and receive Cryptocurrencies. Specially, a Crypto wallet encrypts the public and private key. The public key is used to send or receive money and the private key is you use to access your account(do not share your private key). Varieties of Crypto wallets are available and all the wallets can be classified as Hot Wallet or Cold Wallet.

image source: google image

Hot Wallet versus Cold Wallet

A Hot Wallet in Crypto refers to any kind of storage of your account(s) that is online. Hot wallets can be accessible from anywhere on the internet. Hot wallets are typically not recommended because the information is stored on an online storage and can be hacked.

On the other hand, any type of wallet which is stored offline is termed as Cold Storage Wallet. These kind of wallets are more secure, as they are stored physically and hackers do not have any access to them.

Hope this info has helped you! :-)