Hot Wallet
Also known as: Online Wallet, Internet-Connected Wallet, Software Wallet
A cryptocurrency wallet connected to the internet, allowing fast access but with increased exposure to hacking risks.
A hot wallet is a type of cryptocurrency wallet that is connected to the internet, enabling quick access for sending, receiving, and managing digital assets. Common hot wallets include browser extensions (like MetaMask), mobile apps, and exchange wallets. While convenient, hot wallets are more susceptible to hacking, phishing, and malware compared to cold wallets, which are kept offline. Users are advised to use hot wallets for day-to-day transactions and store larger amounts of crypto in cold storage. Hot wallets support features like token swapping, dApp integration, and staking access.