So, you could give your keys to your exchange to hold for you in its enterprise security-level vault, which would be a custodial cold storage hardware method. A custodial wallet is not as secure but involves a third party that can help you to  log in and manage your crypto accounts. Custodial wallets are often web-based, and their biggest advantage is that they tend to be easier to use. While

It's best to move only what you need to your hot wallet to facilitate easy transactions and keep the remainder in a more secure cold wallet. There are many ways of storing cryptocurrencies, and many of the methods you read about on the internet have changed over time—so it's worth discussing storage types. One is where someone else holds your keys for you, called custodial storage.

All your funds are gone if you put them in a single wallet, and it gets hacked. The hackers utilize various social engineering techniques to trick their to-be victims. For instance, some hackers approached Dominic Lacovone as Apple Support. They tricked him into giving them access to his iCloud account, where he saved his MetaMask recovery phrase.

The unsigned transaction is moved to the offline wallet and signed with the private key. The signed transaction is then moved back to the online wallet, which broadcasts it to the network. Because the  offline wallet never connects to the internet, its stored private keys remain secure.

The Ledger USB Wallet is an example of a hardware wallet that uses a smart card to secure private keys. The protect crypto wallet device looks and functions like a USB drive; a computer and a Chrome-based app are required to store the private keys offline. You can use anything from a standard USB storage drive to an advanced device with a battery, Bluetooth, software, and other features. Like a paper wallet, it is essential to store this USB device and smart card in a safe place, as any damage or loss could terminate access to your cryptocurrency. Crypto wallets offer varying levels of security, and users must select the type of wallet that best aligns with their security and availability requirements.