Cold Storage:

When storing crypto in a cold wallet, it isn’t being stored on the internet.  It’s being stored in one of two ways, either via a hardware wallet or a paper wallet. The most common and popular type of cold wallet, however, is a hardware wallet. 

Hardware wallets are small devices that connect to a computer and store assets.  To send or receive cryptocurrency, they have to connect to the internet. Hardware wallets provide a safe and secure method for users to store their assets. 

​Another type of cold storage is a physical crypto wallet, also known as a paper wallet. This is a printout of your public and private keys, usually in the form of text or QR codes that can be scanned.

Hot Storage:

A hot wallet is an app that stores cryptocurrencies on the internet. Desktop and mobile apps are the most common ways to use hot wallets, but there are also web-based hot wallets.

Recovery:

A recovery phrase is a readable representation of your wallet’s private key, which functions as a secret passcode for authenticating and encrypting access to your wallet. To get your crypto back if you ever lose access to your wallet, you can use the original recovery phrase to regain access.

Private/Public Keys:

In cryptography, these keys are what you use to make cryptocurrency transactions. Public keys are addresses assigned to users that allow them to receive cryptocurrency. Private keys are a secret number that represents a string over alphanumeric characters. Private keys represent control and ownership of cryptocurrency and should never be shared. Unauthorized access to a private key can result in a permanent loss of funds. Therefore, its crucial that private keys are kept offline and stored on paper, only to be accessed by the original owner.