What is Hot Wallet?
A hot wallet stores private keys on a device — phone, browser extension, exchange server — that is connected to the internet. Hot wallets are convenient for daily use but have a larger attack surface than cold storage and should hold only operational amounts.
Why Hot Wallet matters
Understanding Hot Wallet is part of building a solid mental model of how Bitcoin, blockchain and Web3 systems actually work. Concepts in the Security category sit at the foundation of the broader stack — get them right and the rest is far easier.
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Related terms
- Cold Storage — Keeping private keys offline for security.
- Wallet — Software or hardware that manages your private keys.
- Custody — Who controls the private keys.
More security terms
- Seed Phrase — A human-readable backup of a wallet's private keys.
- 51% Attack — An attack where one party controls majority hash power.
- Slashing — Destroying part of a validator's stake as punishment.
- Multi-Signature (Multisig) — A wallet requiring multiple keys to spend.
- Hardware Wallet — A dedicated device that signs transactions offline.
- HD Wallet (BIP-32) — A wallet that derives many keys from one seed.
- Address Reuse — Receiving multiple payments to the same address.
- Rug Pull — A scam where developers abandon a project and run with funds.
Keep exploring
Continue with the full blockchain glossary — 136 terms in total — or read the developer blog and FAQ for deeper context.