Hot Wallet

A hot wallet is a type of digital wallet used to store cryptocurrency that is connected to the internet. Because it's online, it allows for quick access and easy transactions, making it suitable for frequent trading or day-to-day use. However, its constant connection to the internet also makes it more vulnerable to cyber threats like hacking. Think of it as a digital cash wallet kept on your phone or computer—convenient for quick access but needing better security measures. For longer-term storage, many prefer offline wallets, known as cold wallets, which are less exposed to online risks.