Hot wallet

A hot wallet is a crypto wallet connected to the internet, such as an exchange account, browser extension, or mobile app. Being online makes it convenient for frequent transactions but also exposes it to remote attacks, malware, and phishing. Hot wallets are often used for smaller, actively used balances.

A common misconception is that “hot” simply means unsafe; the real trade-off is convenience versus exposure. By contrast, a cold wallet keeps keys offline. See hardware vs software wallets for how storage choices compare.