Bitcoin wallets can be categorized into cold or hot wallets depending on how users store their private keys.
Cold wallets are stored offline, using devices that are not connected to the Internet to ensure the safety of private keys, such as a private key written in a notebook. Although cold wallets prevent users from the risk of being hacked, it is not always safe. It may happen to be stolen or broken.
On the contrary, hot wallets allow users to access their private keys online. To ensure the safety of one’s cryptocurrencies, it’s better to set different passwords for different platforms and enable two-factor authentication when accessing hot wallets.