What is Hot Wallet?

Question

What is Hot Wallet?

Accepted Answer

A **hot wallet** is a cryptocurrency wallet that is always connected to the internet, allowing for quick and convenient transactions, but making it inherently more susceptible to online security risks compared to offline storage solutions.

Hot Wallet

What is Hot Wallet?

What are the primary security risks associated with using a hot wallet, and how do these risks compare to cold storage solutions?

How does a hot wallet technically function to store private keys and process cryptocurrency transactions?

What are the best practices and security protocols users should implement to minimize the risk of loss when using a hot wallet?

What are some notable historical examples of hot wallet exploits, and what was the financial impact of these incidents?

Learn More