What is Hot Wallet?

A wallet connected to the internet, convenient for daily trading.

Details

A hot wallet runs on an internet-connected device — an exchange app wallet, browser extension or mobile wallet — making it convenient for daily trading and dApp use. The trade-off is that private keys live in a connected environment, facing higher risks from malware, phishing and platform incidents. Keep only small amounts for active trading in hot wallets and move larger holdings to cold storage.

Key Points

FAQ

What is Hot Wallet?
A wallet connected to the internet, convenient for daily trading.
What are the key points about Hot Wallet?
A hot wallet runs on an internet-connected device — an exchange app wallet, browser extension or mobile wallet — making it convenient for daily trading and dApp use. The trade-off is that private keys live in a connected environment, facing higher risks from malware, phishing and platform incidents. Keep only small amounts for active trading in hot wallets and move larger holdings to cold storage.
Is this term related to a specific coin?
It applies broadly across the crypto industry.

Related

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