An offline cold wallet provides a high level of security similar to a hardware wallet; both isolate private keys offline and provide a way to approve and sign transactions without exposure to the internet. A cold wallet is “air-gapped” from the internet while a “hot wallet” is connected to the internet and the Qtum network, either directly through a full node (Qtum Core wallet) or a light wallet connecting through an API to a server node. Because hot wallets are online, they have a higher risk profile due to potential exposure to malware, hackers, etc.
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