A hot wallet is a crypto wallet that is connected to the internet. Mobile wallet apps, browser extension wallets, and many exchange wallets are common examples.
Why hot wallets are convenient
Hot wallets make it easy to send coins, connect to DeFi apps, pay gas fees, and manage smaller balances. They are useful when speed matters more than long-term storage.
Why hot wallets need caution
Because a hot wallet is online, it can be exposed to phishing pages, malware, fake wallet prompts, and stolen device access. Signing a bad transaction can sometimes be as dangerous as revealing a password.
Many users keep everyday crypto in a hot wallet and store larger balances in a cold wallet or hardware wallet.