hot wallet
Hot wallet (noun) means a cryptocurrency wallet whose secret keys are held on a device connected to the internet, such as a phone app, a browser extension or an exchange account, making it quick to use and reachable by online attackers. Example: “She keeps a hot wallet on her phone for small everyday payments.”
How to Use Hot wallet
Learner’s notesIn plain EnglishA crypto wallet that lives on a connected device like your phone, easy to use but easier to attack.
Standard industry term, neutral in tone. Exchanges use it specifically for the connected portion of customer funds they keep ready for withdrawals.
Hot and cold describe connectivity, not who controls the keys. A wallet can be hot and still be entirely under your own control.
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She keeps a _____ on her phone for small everyday payments.
Etymology
From hot in the sense of live or connected, contrasted with cold storage kept offline.
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Rhymes for hot wallet
See all rhymes for hot wallet →Frequently Asked Questions
What is the difference between a hot wallet and a cold wallet?
The difference is whether the keys sit on something connected to the internet. Hot wallets are convenient for regular transactions but exposed to online threats; cold wallets keep the keys offline, which is more awkward to use and much harder to reach remotely.
What is the difference between a custodial and a non-custodial wallet?
In a custodial wallet, such as an exchange account, the company holds the keys and you hold a claim against them. In a non-custodial wallet you hold the keys yourself, which means no one else can move your funds and no one can restore access if you lose your recovery phrase.
Is a browser extension wallet a hot wallet?
Yes. Extension wallets keep keys on a machine connected to the internet, so they count as hot even though the keys are yours rather than a company's. Many can also be paired with a hardware wallet, so the extension handles the interface while the keys stay offline.