Hot wallet

A hot wallet is any wallet whose private keys are stored on a device connected to the internet, such as a mobile app, desktop program or browser extension. Exchange accounts are also a form of hot storage, held by the exchange.

Hot wallets are convenient for frequent payments, trading and using decentralised apps, because you can sign transactions instantly. The trade-off is a larger attack surface: malware, phishing websites, malicious browser extensions and compromised devices can all expose keys or trick you into signing harmful transactions.

A common approach is to treat a hot wallet like the cash in your pocket. Keep only what you need for regular use, protect the device with a strong passcode, keep software updated, and move long-term savings to a cold wallet.