Hot Wallets

Hot wallets are software wallets that connect to the internet. They are commonly used for everyday transactions, interacting with apps, and managing smaller balances.

This section explains what hot wallets are, when they make sense to use, and how they differ from cold wallets. It also provides links to deeper explanations for those who want to learn more.

What is a hot wallet?

A hot wallet is a cryptocurrency wallet that runs on an internet-connected device such as a phone, browser, or computer. Private keys are controlled by the user, but the wallet software remains connected to the network to send and receive transactions.

Hot wallets prioritize convenience and accessibility. Because they are online, they are typically used for active use rather than long-term storage.

Why hot wallets are commonly used

Hot wallets exist because many cryptocurrency activities require frequent interaction:

• Sending and receiving crypto quickly
• Interacting with decentralized applications (DeFi, NFTs)
• Managing small balances for daily use
• Connecting to blockchain networks without additional hardware

For many users, hot wallets act as a working wallet, while cold wallets are used for long-term storage.

HOT WALLET CATEGORIES

  • Mobile wallets

    Apps installed on smartphones. Commonly used for convenience and on-the-go transactions.

  • Browser wallets

    Browser extensions that interact directly with websites and decentralized applications.

  • Desktop wallets

    Wallet software installed on a computer, often offering more control and advanced features.

How hot wallets differ from cold wallets

Hot wallets and cold wallets serve different purposes.

Hot wallets are connected to the internet and optimized for speed and interaction. Cold wallets store private keys offline and are designed for long-term custody and reduced exposure to online threats.

Many users choose to use both: a hot wallet for active use and a cold wallet for storage.

COMMON USE CASES

  • Common uses for hot wallets

    • Daily transactions
    • DeFi and NFT interactions
    • Testing new networks or apps
    • Managing smaller balances

  • Situations where caution matters

    • Storing large balances
    • Long-term holding without backups
    • Clicking unknown links or approvals
    • Using unverified wallet software

Learn more about hot wallets

If you want to go deeper, the following guides explain hot wallets in more detail:

• Hot Wallets Explained — how they work and what risks to understand
• Popular Hot Wallets & Ecosystems — commonly used software wallets grouped by category

These guides focus on understanding, not recommendations.

A reminder about responsibility

Hot wallets give you direct control over your crypto, but that control comes with responsibility. Losing access credentials or approving malicious transactions can result in permanent loss of funds.

Understanding how a wallet works is more important than choosing a specific app or brand.

Hot wallets — common questions

Are hot wallets unsafe?

Hot wallets are not inherently unsafe, but they are exposed to more risks because they are connected to the internet. How they are used matters.

Should beginners avoid hot wallets?

No. Many beginners start with hot wallets to learn how transactions work. Smaller balances are commonly used while learning.

Can I use both hot and cold wallets?

Yes. Many users use hot wallets for active use and cold wallets for long-term storage.