Three Types of Wallet

Exchange wallet

Also known as “Hot Wallet” , it is connected online. You can perform and execute your financial decision easily with your asset in the platform.
Also it is much easier to perform transactions between parties. Among all the wallet, hot wallet is the easiest to encounter cyber security threats.
For example: Binance, Bitxmex, Huobi, Bybit and etc

Cloud Wallet

Also known as “Warm Wallet” it is connected online.
It is very similar to hot wallet, the only difference is it is based on downloadable software or apps and it depends on 12-digit passcodes or PIN numbers for security and identity verification.
Example: Exodus, Infinito and etc

Cold Wallet

it is in physical form like pendrive to save your cryptocurrency into the wallet. Since it is offline, it is impossible to be hack,
so it is safe from the internet however, if you loss the hardware, it is also impossible for you to retrieve your asset back.
Example: Ledger, Coolbitx and etc