A hot wallet is a type of cryptocurrency wallet that is connected to the internet. It allows users to easily send and receive digital assets. Because of its online connectivity, it offers greater convenience for frequent trading and transactions.However, the very feature that makes hot wallets user-friendly also exposes them to certain risks. They are more vulnerable to hacking and cyberattacks compared to cold wallets, which are offline and provide higher security. Hot wallets can come in various forms, including software applications on computers or mobile devices, as well as web-based platforms provided by exchanges. While they are ideal for active traders or those who need immediate access to their funds, it is crucial to exercise caution. Users should consider storing only the amount they need for immediate use in a hot wallet, while keeping the bulk of their assets in more secure storage methods. This balance helps mitigate security risks while still allowing for operational flexibility.