Using one wallet for everything is convenient, but it also creates a single point of failure. If that wallet is used for long-term storage, DeFi, airdrops, NFT claims and random dApps, every new interaction increases the attack surface around the same pool of funds.
That is why I think separating wallets by purpose makes a lot of sense.
A long-term wallet should ideally have very limited exposure. It can hold Bitcoin, ETH or other assets that are not moved often, and it should rarely connect to unfamiliar applications. The fewer approvals and external interactions attached to that wallet, the lower the operational risk.
A DeFi wallet has a completely different job. It needs to connect to protocols, approve tokens, bridge assets and interact with smart contracts regularly. Those actions are necessary, but they also create more opportunities for phishing, malicious approvals or contract exploits.
Separating the two means a mistake in the active wallet does not automatically expose the long-term holdings.
I also like the idea of using a third wallet for higher-risk activity. New protocols, token claims and experimental applications can be isolated from both the main DeFi wallet and cold storage. It adds some complexity, but that complexity can be worthwhile if the portfolio value is significant.
The main downside is management. Multiple wallets mean more addresses, more backups and more chances to send funds to the wrong place. If the setup becomes too complicated, security can actually get worse.
For me, the balance is simple: the larger the amount and the more often someone interacts with Web3, the stronger the case for wallet separation.
Do you use separate wallets for long-term holdings, DeFi activity and higher-risk dApps?
How many wallets do you think is practical before the setup becomes too difficult to manage?
And if you separate them, do you also use different hardware devices or only different accounts and addresses?