Custody Levels
Security is a spectrum.
There is no single perfect wallet. Better security usually means more responsibility. Better convenience usually means more exposure.
Exchange Custody
Easy, but you do not control the keys. Good for trading, not ideal for long-term self-custody.
Hot Wallet
Convenient and connected to the internet. Useful for small amounts and daily use.
Hardware Wallet
Keys are protected by hardware. Good for long-term holders who want stronger self-custody.
Seedless Wallet
Examples include card-based systems. Easier for beginners, but backup card planning is critical.
Cold Wallet
Keys are kept offline. Stronger protection, but harder to use correctly.
Air-Gapped Signing
Advanced model where transactions are built online but signed offline.