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What Are the Risks Associated with a Hot Wallet?

The main risks of a hot wallet include exposure to online threats such as hacking, malware, and phishing attacks. Since the private keys are stored on an internet-connected device or service, a breach of that system can lead to the theft of funds.

User error, like falling for a scam, is also a significant risk.

Why Is Offline Signing More Secure than Online Signing?
Why Should a Seed Phrase Never Be Stored Digitally or Online?
What Is the Difference between a Hot and Cold Wallet?
Explain the Difference between ‘Hot Wallet’ and ‘Cold Wallet’ Custody