← Glossary
Hot Wallet
An internet-connected wallet — convenient for spending, riskier for storage.
A hot wallet is any wallet connected to the internet: a phone app, a browser extension, or an exchange account. It's great for everyday spending and trading because it's always available.
The downside is exposure — being online makes it a bigger target. A common approach is to keep small, spendable amounts in a hot wallet and the rest in cold storage.