Hot Wallet
A cryptocurrency wallet connected to the internet, offering convenience but increased security risk.
In-Depth Explanation
Hot wallets include browser extensions (MetaMask), mobile apps, and exchange accounts. They're convenient for active trading and DeFi but vulnerable to hacks, phishing, and malware. Best practice: keep only what you need for active use in hot wallets; store the majority in cold storage.
Related Terms
Wallet
Software or hardware that stores private keys and enables users to send, receive, and manage cryptocurrency.
Cold Wallet
A cryptocurrency wallet that stores private keys offline, providing enhanced security against online threats.
Private Key
A secret cryptographic key that proves ownership and enables signing transactions for a blockchain address.
More in Infrastructure
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Transaction fees paid to validators/miners for executing operations on a blockchain.
Gwei
A denomination of Ether equal to one billionth of an ETH, commonly used to express gas prices.
Layer 2
L2Scaling solutions built on top of a base blockchain (L1) that process transactions off-chain while inheriting L1 security.
Layer 1
L1The base blockchain that provides security and consensus, such as Ethereum, Bitcoin, or Solana.