Hot Wallet
Definition
A hot wallet is a cryptocurrency wallet whose private keys are stored on an internet-connected device — a phone, computer, or a web-based service. Because the keys are online, the wallet can be used immediately for transactions.
Key Characteristics
- Connected: Always or frequently online
- Convenient: Fast to access, easy to send transactions
- Liquid: Ideal for frequent transactions and trading
- Exposed: Private keys are on an internet-connected device
Examples
- MetaMask (browser extension or mobile)
- Trust Wallet (mobile)
- Exchange-hosted wallets (Coinbase, Binance)
- Any wallet where the seed phrase/key is stored on a device with internet access
Hot vs. Cold Wallet
| Aspect | Hot Wallet | Cold Wallet | |--------|-----------|-------------| | Connectivity | Online | Offline | | Security | Lower | Higher | | Speed | Fast | Requires device | | Best for | Trading, small amounts | Long-term holding, large amounts |
Related
- [Cold Wallet](/glossary/cold-wallet/)
- [Self-Custody](/guides/bitcoin-self-custody-tradeoffs/)
- [Seed Phrase](/guides/seed-phrases-what-they-are-and-how-people-lose-them/)