Hot Wallet
A hot wallet is a cryptocurrency wallet connected to the internet. Mobile wallets, browser extensions (MetaMask), and exchange accounts are all hot wallets.
Understanding the Concept
Hot wallets prioritize convenience over security. You can trade, swap, and interact with DeFi protocols instantly. But that connectivity is also vulnerability—hackers, malware, and phishing attacks can drain hot wallets. Never keep more in a hot wallet than you're willing to lose. Use hot wallets for active trading and DeFi interaction. Use cold wallets for long-term storage. Hardware wallet security with hot wallet convenience exists (Ledger Live with DeFi), but requires the device for transactions. Balance risk and usability based on your activity level.
Real-World Example
You keep 1 ETH in MetaMask for gas fees and DeFi testing. Your other 10 ETH sits on a Ledger. When MetaMask gets compromised (it happens), you lose 1 ETH, not 11. Risk managed.
How Strykr Helps
Strykr tracks Hot Wallet developments across the crypto ecosystem. Our AI provides real-time insights and alerts to help you navigate the market with confidence.
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