What is Hot wallet?
A wallet connected to the internet — convenient for spending, more exposed to attacks.
A hot wallet is any wallet whose keys live on an internet-connected device — a phone app, a browser extension, a desktop program. The connectivity is the feature and the flaw: transactions are instant and DeFi is a click away, but the keys share a device with your browser, your downloads and whatever malware finds its way in.
Used properly, a hot wallet holds spending money, not savings — the amount you could lose without changing your week. Keep the majority in a cold wallet or a well-secured exchange account, and treat every wallet-connect prompt and token approval with the suspicion it deserves; malicious approval requests are among the most common drains of hot wallets.
See it in practice
Related terms: Cold wallet · Seed phrase · Private key · full glossary
FAQ
Is a hot wallet safer than leaving coins on an exchange?
Different risks, not strictly safer: a hot wallet removes exchange counterparty risk but makes you the security team. For beginners with modest amounts, a reputable AUSTRAC-registered exchange with strong 2FA is often the more realistic protection.
What's a "wallet drainer"?
A malicious site or contract that tricks you into signing a transaction granting it access to your tokens. The defence is habit: read what you're signing, revoke old approvals, and keep serious funds in cold storage that never connects to websites.
General information only, not financial advice. Definitions are maintained in our fact database and reviewed with the daily rebuild.