GlossaryIntermediate
Burner Wallet
A temporary, disposable wallet created for a specific short-term purpose, holding minimal funds and generally abandoned afterward.
A burner wallet is a temporary, disposable wallet created for a specific short-term purpose — such as interacting with an unfamiliar or unaudited application, or a single event — holding only minimal funds needed for that purpose, and generally abandoned rather than reused afterward.
Using a burner wallet is a practical risk-management technique specifically for interacting with a smart contract or application whose safety hasn't been fully verified, since any malicious approval or exploit is contained to the burner wallet's minimal funds, rather than exposing a user's main wallet.
Examples
- A user testing an unfamiliar, unaudited DeFi protocol might use a burner wallet funded with only a small amount, specifically to limit potential exposure.
- A burner wallet is generally abandoned after its specific purpose is complete, rather than reused for ongoing, everyday transactions.