GlossaryBeginner
Hot Wallet
A crypto wallet that stays connected to the internet, trading convenience for exposure.
A hot wallet is a cryptocurrency wallet that remains connected to the internet, such as a mobile app, browser extension, or exchange account. This makes it convenient for frequent transactions.
Because it's internet-connected, a hot wallet is generally considered more exposed to remote attacks than a wallet kept entirely offline, making it better suited to smaller, active balances than long-term storage.
Examples
- A mobile wallet app used for everyday spending is a common example of a hot wallet.
- Many people keep only a small, active balance in a hot wallet and hold the rest in cold storage.