What Are the Risks Associated with a Hot Wallet? ⎊ Path

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.

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Glossar

Hot Wallet

Storage ⎊ A hot wallet is a cryptocurrency storage solution where the private keys are created, stored, and managed on a device or server connected to the internet.