Internet
hot wallet
What does hot wallet mean?
A wallet connected to the internet (a mobile app, browser extension, or exchange account) that's convenient for spending and trading but more vulnerable to hacks than cold storage.
"I keep a little in a hot wallet for gas and DeFi, the rest stays cold."
Origin
Crypto security term for online, readily-accessible wallets.
Frequently asked questions
What is a hot wallet?
A hot wallet is a crypto wallet connected to the internet — like a mobile app, browser extension, or exchange account — that's convenient for spending and trading but more vulnerable to hacks.
Is a hot wallet safe?
It's fine for small, everyday amounts, but because it's online it carries more risk than cold storage, so large holdings are best kept offline.
Why use a hot wallet instead of cold storage?
Hot wallets are quick and easy for gas fees, DeFi, and active trading, whereas cold storage prioritises security over convenience.
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