Glossary
Hot Wallet
A cryptocurrency wallet whose private keys live on an internet-connected device, trading maximum convenience for a much larger attack surface than cold storage.
A hot wallet keeps its private keys on a device that is connected to the internet — a browser extension, a mobile app, or an exchange's servers. That constant connectivity is exactly what makes it convenient: the keys are always ready to sign, so swaps, transfers, and dApp interactions happen in seconds.
The trade-off is exposure. Because the signing key lives on a networked machine, malware, phishing pages, and malicious token approvals can all reach it. The common practice is to treat a hot wallet like the cash in your pocket — keep only spending-sized balances there and move long-term holdings to cold storage.