AION Explained
Hot Wallet vs Cold Wallet
A hot wallet uses keys on an internet-connected device, while cold storage keeps signing keys offline. The safer choice depends on transaction frequency, recovery planning and the threats the user can manage reliably.
Hot wallets favor access
Mobile and browser wallets make frequent transactions practical, but the device, extensions, clipboard and signing flow are exposed to online threats. Limit the amount available for routine activity and review permissions regularly.
Cold storage changes the threat model
Hardware wallets and offline signing can keep keys away from an internet-connected computer. They do not protect against approving a malicious transaction, using a compromised recovery backup or sending to the wrong address.
Separate spending from reserves
Many users reduce risk by keeping a small operational wallet and a separate long-term wallet. Use distinct recovery backups, verify addresses on the signing device and test recovery before relying on the setup.
Recovery matters more than the label
A sophisticated device is not useful if heirs cannot recover it or if the seed phrase is photographed and uploaded. Document a secure recovery process without putting the secret itself in the instructions.
Frequently asked questions
Is a hardware wallet automatically safe?
No. It reduces exposure of private keys, but supply-chain tampering, weak backups, phishing and malicious signing requests can still cause loss.
Primary references
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