What Is Hot Wallet? Meaning & Example
Definition
A hot wallet is a crypto wallet connected to the internet, such as a mobile or browser app. It is convenient for frequent use but more exposed to hacking.
Related terms
A cold wallet keeps crypto keys offline, often on a dedicated hardware device or paper. It is generally safer against online attacks but less convenient.
Crypto WalletA crypto wallet is software or hardware that stores the keys needed to access and move your crypto. The wallet does not hold coins itself; it holds the keys that control them.
Private KeyA private key is a secret code that proves ownership of crypto and authorizes transactions. Anyone with your private key can move your funds, so it must never be shared.
What is Hot Wallet?
A hot wallet is a crypto wallet connected to the internet, such as a mobile or browser app. It is convenient for frequent use but more exposed to hacking.
Can you give an example of Hot Wallet?
Keeping a small spending balance in a hot wallet and the rest in cold storage is a common setup.