What is a hot wallet?

What Is a Hot Wallet?

A hot wallet is a wallet that is connected to the internet. This includes exchange wallets, mobile apps, and browser extensions. They are convenient for frequent trading and small amounts. The downside is that they are more exposed to hacking, phishing, and malware. Do not keep large amounts in a hot wallet. Use a strong password and two-factor authentication. For significant holdings, use a cold or hardware wallet.