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.
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