What is a Hot Wallet?

Modified on Mon, Apr 17, 2023 at 12:11 PM

A hot wallet is a type of digital wallet that is connected to the internet and is used for storing and managing cryptocurrencies. It is called "hot" because it is connected to the internet, which makes it more vulnerable to hacking and other security threats compared to a "cold" wallet that is stored offline.


Hot wallets are often used for day-to-day transactions with cryptocurrencies because they are easily accessible and can be used for quick transfers. However, they are not recommended for long-term storage of large amounts of cryptocurrency because of the higher risk of theft or loss.


Examples of hot wallets include software wallets, mobile wallets, and web wallets. These wallets are often free or low-cost, and can be accessed using a variety of devices including smartphones, tablets, and desktop computers.

Was this article helpful?

That’s Great!

Thank you for your feedback

Sorry! We couldn't be helpful

Thank you for your feedback

Let us know how can we improve this article!

Select at least one of the reasons

Feedback sent

We appreciate your effort and will try to fix the article