What is a Hot Wallet?

A ‘hot’ wallet is digital and lives on your computer or mobile device as an app or an add-on to a browser. It is connected to the internet and you can easily send and receive transactions.

It is important to understand specific wallets support different blockchains and coins, but can in many cases interact with multiple blockchains and can host a wide variety of coins.

The downside of a hot wallet is security. Being on the internet exposes you to being hacked and losing your coins.