A hot wallet is a type of cryptocurrency wallet that is connected to the internet. Unlike cold wallets, which are stored offline and are typically used for the long-term storage of large amounts of cryptocurrencies, hot wallets are designed for convenience and ease of access.
They facilitate quick transactions, making them suitable for everyday use, such as buying goods and services or trading on exchanges. However, the internet connectivity of hot wallets makes them more susceptible to online threats like hacking, phishing attacks, and malware. Users often balance security and convenience by keeping a limited amount of cryptocurrency in a hot wallet for regular use and storing the bulk of their assets in more secure cold wallets.