What is Hot Wallet?
Let's find out Hot Wallet meaning, definition in crypto, what is Hot Wallet, and all other detailed facts.
A hot wallet is a cryptocurrency wallet that is connected to the internet. It is the opposite of a cold wallet which is not connected to the internet. A hot wallet gives its users a quick and easy way to transfer and receive crypto on the go because it runs on the cloud, a mobile device, or a desktop.
A wide range of hot wallets is accessible, with many of them being free to download. Some wallets are made to work together with specific mobile web applications. Others, only work with a specific digital asset or a blockchain. Besides, some cryptocurrency exchanges only accept transfers to, and from, particular wallets. MetaMask, Coinbase Wallet, and Edge Wallet are all examples of hot wallets.
However, note that, since public and private keys are stored on the internet, anything that is stored in a hot wallet is vulnerable to attacks. Therefore, it's better to use hot wallets for small day-to-day transactions rather than long-term holding.