Recently, I came across a pretty frightening case. Someone bought a so-called "cold wallet" on social media, and overnight, 50 million was gone—truly a bloody lesson.

Actually, many beginners don’t understand the difference between cold wallets and hot wallets. Simply put, a cold wallet is a completely offline physical device, like an upgraded USB drive, not connected to the internet during normal use, only plugged in when needed. A hot wallet, on the other hand, is a software wallet that is always online, convenient and quick. Large-scale investors usually choose cold wallets for long-term storage because, in theory, they are safer.

But why are they still being hacked? The problem lies in buying counterfeit or tampered wallets. Some scam groups specifically sell these trap wallets, claiming they are "cold wallets" or "brand new genuine products," but in reality, the private keys generated are monitored by them from the start. As soon as funds are transferred in, their backend technical team can transfer your money at any time. That’s why cases of cold wallet theft happen from time to time.

Some people might say, isn’t using a hot wallet safer? Actually, not necessarily. The key is whether the wallet itself is legitimate. Hot wallets can be downloaded and used casually, but cold wallets must be purchased. Be sure to buy from official channels and reputable brands—don’t be fooled or try to save money by buying unknown products.

To truly protect your assets, remember a few key points: For cold wallets, keep your hardware and seed phrases safe—don’t lose them or reveal them. For hot wallets, choosing a reliable software is crucial. Store your private keys and seed phrases securely—never screenshot or back them up to a mobile app. Writing them down on paper is the safest. Basically, cold wallet theft often happens because you bought the wrong product from the start, so the first step is the most important.