Hot Wallet
Internet-connected wallet for quick access to crypto assets.
Beginner-friendly explanation
A hot wallet is an app or website that allows you to access your cryptocurrencies directly online. It’s convenient for quick buying, selling, or trading, but slightly riskier than a cold wallet because it is connected to the Internet.
Example: Metamask is a popular hot wallet for using decentralized finance.
Intermediate-level insight
A hot wallet stores private keys on a connected device, making everyday operations (trading, DeFi, NFTs) easier. Its security depends on device protection and user practices.
Example: A user can connect their hot wallet to Uniswap to directly swap tokens.
Advanced perspective
Managing a hot wallet requires a thorough evaluation of the permanent exposure to online threats.
Example: A DeFi trader uses a main hot wallet with limited funds for operations, while storing their main capital in a cold wallet.
Cryptocurrencies & Tokens
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