A Hot Wallet Protocol refers to a system used for storing and managing cryptocurrencies that are connected to the internet. This type of wallet allows users to easily send and receive funds, making transactions quick and convenient.Because they are online, hot wallets are often used for everyday transactions. They can be accessed via web applications, desktop software, or mobile apps. This accessibility comes with a trade-off, as hot wallets are more vulnerable to hacking and cyber attacks compared to cold wallets, which are stored offline.Hot Wallet Protocols include various security measures to mitigate risks, such as two-factor authentication and encryption. Users must remain vigilant and adopt best security practices to protect their assets. Overall, hot wallets serve as a functional tool for managing and exchanging cryptocurrencies while requiring users to balance convenience and security.