What is a Hot Wallet?
The short answer
A wallet connected to the internet, like a phone app — convenient, but more exposed than a cold wallet.
Hot wallets (most mobile and browser wallets) are always online, which makes them easy to use for everyday transactions but somewhat more exposed to online threats than a cold wallet. Fine for smaller, everyday amounts; less ideal for large holdings.
Related terms
Full glossaryPublic Key / Wallet Address
The "account number" you can safely share so people can send you crypto.
Consensus
The process by which a decentralised network agrees on which transactions are valid, without a central authority.
Decentralization
Spreading control across many independent participants instead of one company, so no single party can change the rules…
Cross-Chain Bridge
A tool that lets crypto or data move between two different, otherwise incompatible blockchain networks.
Mining
The process, used by Bitcoin and similar networks, of using computing power to validate transactions and earn new…
Max Supply
The absolute maximum number of coins that will ever exist for a given cryptocurrency, if one is set.
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