There are two types of wallets:
Custodial (hot) and non-custodial (cold).
The second category also includes what I call web3 wallets.
Essentially, a wallet is a tool for interacting with a particular address in the blockchain, similar to a debit card and the bank account to which it is linked.
In the case of a hot wallet, your private key (analogous to bank card details and PIN code) is stored by the service itself - the data is completely secure (99%), the service is quite difficult to hack unless it wants to.
In addition, the service is usually controlled by one or another jurisdiction, and therefore depends on the policy of the country it is located in. Remember how Bananas left the Russian Federation and blocked the accounts of Russians with a balance of more than $ 10k or how @wallet in Telegram blocks without warning.
A cold wallet or hardware wallet also has its pros and cons.
Plus - your private key is stored on the device itself, access to which you can only get by going through all the passwords and pin codes you set in advance. The security of known cold wallets is 100%. There are a lot of stages of device protection, up to self-destruction. A hardware wallet is the best solution for holders. Cons - in conditions of constant interaction with blockchains (web3.0), you need to carry it with you, constantly go through all the circles of hell to connect to the service, which is not very convenient.
The narrative of the future is cold multi-currency web3.0 wallets.
These are web and hybrid applications that are installed on your usual device - a smartphone or computer.
In this case, the private key is stored on your device, the security of which is easier to monitor. These wallets combine two financial systems - crypto and fiat, and are also convenient in interaction with various blockchains. We are already diving into WEB 3.0, haven't you noticed yet?
What I would do:
Combined cold wallets. Have a hardware one for those assets that you will rarely touch, web3 - for those that you constantly use, and one or two web wallets for airdrops and other things.
How to store seed phrase?
In no case on screenshots, in the cloud, in smartphone notes, computer text documents, etc.
You need to store the seed phrase on a piece of paper, or better yet, carve it on a fireproof metal plate and hide it in several places around the world that only you know about.
Connect only to services you are confident in. Good luck.
