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What Is the Risk of a “Hot Wallet”?

A hot wallet is any cryptocurrency wallet that is connected to the internet, such as a mobile or exchange wallet. The primary risk is that its private keys are stored online, making it vulnerable to hacking, malware, and other cyberattacks.

While convenient for frequent transactions, it is generally not recommended for storing large amounts of funds.

Why Is Offline Signing More Secure than Online Signing?
What Is the Fundamental Security Difference between a Hot Wallet and a Cold Wallet?
Which Type of Wallet Is Generally Considered More Secure?
What Are the Legal Implications of a Financial Institution “Hacking Back” against a State-Sponsored Attacker?