Is cold wallet better

[MAHICO]

Could you please clarify for me what a cold wallet actually is?

You have to learn about cold wallets and hot wallets at the same time in order to be able to differentiate these wallets.

• What are the different types of wallets?
• You will have information about software wallets aka. hot wallets, and hardware wallets aka. cold wallets.

From your link I read and understand that Cold wallet is basically called hardware wallet. Where it is offline. It is like a device. Which is much more secure. I understood this much. If there is no internet then how do bitcoin transactions take place?
Since this is more secure then do those who hold a lot of bitcoin use it?
If you keep bitcoin in a normal wallet then how can this wallet be hacked? As far as I know, bitcoin wallets cannot be hacked.

[hosemary]

From your link I read and understand that Cold wallet is basically called hardware wallet.

A cold wallet isn't necessarily a hardware wallet.
If you generate your private keys on an air-gapped device and keep them offline, you have a cold wallet.

If there is no internet then how do bitcoin transactions take place?

In a cold wallet, you sign your transaction offline and you still need internet connection for broadcasting the signed transaction.

Since this is more secure then do those who hold a lot of bitcoin use it?

It's always recommnded to use a cold wallet, especially if you have large amount of funds.

If you keep bitcoin in a normal wallet then how can this wallet be hacked? As far as I know, bitcoin wallets cannot be hacked.

Any online device is always prone to hacking and many people have lost their funds in that way.

[Cookdata]

From your link I read and understand that Cold wallet is basically called hardware wallet. Where it is offline. It is like a device. Which is much more secure. I understood this much. If there is no internet then how do bitcoin transactions take place?
Since this is more secure then do those who hold a lot of bitcoin use it?
If you keep bitcoin in a normal wallet then how can this wallet be hacked? As far as I know, bitcoin wallets cannot be hacked.

You are complicating the meaning of cold storage.

A cold storage isn't just about device, it means your private keys are completely offline and never touches the internet. Examples are hardware wallet, airgap wallet, and paper wallet, the three keep your keys offline and don't have any touch with the internet.

Hardware examples are Trezor and Legder, to use them you have to connect the device to the internet to be able to use them but your keys are safe from the internet, the connection can be established with a USB type c cable and Bluetooth where as;

An airgap device doesn't make any connection with the internet before you can use them, the device doesn't have any connection with the internet, once internet is established, that wallet isn't longer an airgap wallet. Most often, the connection are done with a QR code and SD card. Some airgap wallet comes with camera for scanning a QR code of psbt transaction from online wallet to the offline wallet to sign the transaction and then scan with the online wallet to be broadcasted on the Bitcoin network while some are sd card built for transfer of psbt from an online wallet to the offline wallet to be sign and broadcasted for confirmation.

Paper wallet is also a cold storage where your keys are generated and printed on a pieces of paper, it's only when you import the wallet online it no longer a cold storage.

[RockBell]

Yes cold wallet (hardware wallet) remains the best because it is only used for storing your Bitcoin and are strongly protected from attacks that other software wallets are exposed to, it stores all your private keys, when you want to make transaction you have to connect it to the computer and internet before transactions can be made and all the signing takes place on the device, and the private keys are so secured because it is not exposed to the internet, although it is very expensive but the best to be used .

The both of them are different but have something in common which is storing bitcoin now one of the things that have been focused on in the subject matter is the security the facts that your private key is offline makes it more considerable to make use of but another thing is that as for me it should be that you are storing a very reasonable amount on it, but if anyone can afford it they should go for them because of secured they are actually, and there is also what is called personal security because a lot of things can still happen in a situation like this, security of your assets matters a lot and newbies need to know this for the betterment of there asset.

[Cricktor]

Hardware examples are Trezor and Legder, to use them you have to connect the device to the internet to be able to use them but your keys are safe from the internet, the connection can be established with a USB type c cable and Bluetooth where as;

Hardware wallets which are connected via USB or Bluetooth usually don't have firmware code in them with which they could talk to the internet and vice-versa directly (or even indirectly), even when the connecting computer or mobile device is online.

Compagnion software wallets like Trezor Suite, Ledger Wallet, BitBox App and other software wallets only can talk to your hardware wallet if those are supported. The software wallet part uses defined APIs which normally won't allow private keys to leak to the online device. An infamous exception is the Ledger crap with its paid Recovery Service where supported Ledger hardware has firmware code to exfiltrate encrypted private key shards upon request via the Ledger Wallet software.

Needless to say, I won't ever use Ledger shit-crap. You do yours...

As a decent hardware wallet (not counting Ledger to this) simply can't talk to the internet and vice-versa and leak private keys, I personally consider them cold devices, even when they connect via USB to an online host device. You don't have to agree with my viewpoint.

Paper wallet is also a cold storage where your keys are generated and printed on a pieces of paper, it's only when you import the wallet online it no longer a cold storage.

I would consider a paper wallet only "cold" when it was created on a "cold" and offline device and this device with its OS never connected to the internet after the paper wallet creation. Therefore it's recommended to use live Linux that runs solely in RAM and has no persistant storage and can be disposed completely without data traces after paper wallet creation.