According to Phil Kwok, new wallet setup prompts to import an existing seed can mislead traders, because importing a cold seed into a hot wallet removes the protection of cold storage, so a new and separate seed should always be generated for any hot wallet used for daily transactions, source: Phil Kwok on X, Oct 18, 2025. According to Phil Kwok, mixing a cold seed with a hot wallet means that simply also keeping the seed in a cold wallet does nothing to protect funds from hot wallet attack surfaces, source: Phil Kwok on X, Oct 18, 2025. According to Phil Kwok, the actionable best practice for trading operations is strict key segregation: maintain long-term holdings on a cold wallet with its own seed and create a distinct seed for hot wallets that interact with exchanges and DeFi, source: Phil Kwok on X, Oct 18, 2025.