Crypto glossary
Hot wallet
A hot wallet is a crypto wallet whose private keys are kept on a device connected to the internet, making it convenient but more exposed to hacks.
Hot wallets include mobile apps, browser extensions, desktop programs and the online wallets exchanges use to process withdrawals. Because the keys sit on an internet-connected device, transactions can be signed in seconds, which suits trading, payments and using decentralized apps.
The same connectivity is the weakness. Malware, malicious browser extensions, phishing sites and compromised devices can extract keys or trick users into signing harmful transactions. Many large exchange thefts have targeted hot wallets, which is why platforms keep only a small share of customer funds in them.
A common practice is to keep a small spending balance in a hot wallet and move long-term savings to a cold wallet.
Example
A trader might keep $500 worth of tokens in a phone wallet for daily swaps while storing the rest of their portfolio on a hardware wallet kept in a drawer.
Related terms
Latest articles on Hot wallet
- BTCPay Server Traces Hot Wallet Drains to Older Versions After Emergency Shutdown
- Ethereum’s EIP-7702 Used to Sweep $2.5B From Binance Hot Wallet
- Top Crypto Hot Wallets of 2026, According to CoinGecko
- Cold and Hot Wallets Explained: Real-Life Examples for Secure Cryptocurrency Storage
- BigONE Hacked: $27M Stolen in Devastating Hot Wallet Attack
