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Hot Wallet

Last updated 17 October 2026Last verified 17 October 2026

What is a hot wallet?

A wallet whose private keys are stored on an internet-connected device (browser extension, mobile app, exchange interface). Convenient but exposed to remote compromise. Appropriate for frequent transactions with small amounts. Not appropriate for storing significant value. The operational equivalent of carrying cash in your pocket rather than keeping it in a safe.

TradFi equivalentThe operating account, funded deliberately with only what the day requires. The exposure is a live internet-connected device rather than a branch safe, so balance discipline is the control.