Part 6/8:
Hardware wallets are versatile. They store private keys offline but can facilitate transactions and interactions with decentralized applications, which introduces potential vulnerabilities if proper vigilance isn’t maintained.
Cold wallets are strictly for storage, designed to stay disconnected from online interactions to minimize attack vectors.
In simple terms, whether a particular device is classified as a "cold wallet" depends on how you use it. If you keep your hardware wallet offline and only transfer assets without engaging in web3 activities, it effectively becomes a cold wallet.