A hot wallet is a wallet whose keys live on a device connected to the internet — a phone app, a browser extension, or a desktop program. It's convenient for daily spending and interacting with dApps, because signing a transaction takes seconds. Why it matters Convenience has a security cost: anything connected to the internet is exposed to malware and phishing. The common pattern is small amounts for everyday use in a hot wallet, and the bulk of funds in a cold wallet. Related terms cold wallet · wallet · private key
A hot wallet is a wallet whose keys live on a device connected to the internet — a phone app, a browser extension, or a desktop program. It’s convenient for daily spending and interacting with dApps, because signing a transaction takes seconds.
Why it matters
Convenience has a security cost: anything connected to the internet is exposed to malware and phishing. The common pattern is small amounts for everyday use in a hot wallet, and the bulk of funds in a cold wallet.