Usage frequency

The wallets can also be differentiated on the basis of usage; there are primarily two types of wallets on this basis: cold wallet and hot wallet. In simple terms, cold wallets are not connected to the internet while hot wallets are connected to the internet, at all times and can be used for sending the respective cryptocurrency at any time. Cold wallets can be used to receive the currency even when not connected to the internet but it is not possible to send the currency to other address before connecting it to internet.

A hardware wallet is not connected to the internet unless plugged-in to a device; they can be considered cold wallets.