Hot Wallet

A hot wallet is a cryptocurrency wallet that is connected to the internet, allowing users to store, send, and receive cryptocurrencies conveniently. Can receive a hot wallet when signing up for an exchange.

What You Need To Know

The constant connection to the internet makes them more vulnerable to cyber threats compared to cold storage solutions. To mitigate risks, users should follow best practices like enabling two-factor authentication, using strong passwords, limiting stored funds, and keeping recovery phrases secure offline.