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Hot Wallet

Intermediate

A hot wallet is a cryptocurrency wallet connected to the internet, designed for easy access and frequent transactions. Common types include web wallets, mobile apps, and desktop wallets. While convenient, hot wallets are more vulnerable to hacks and phishing attacks. They are best suited for smaller amounts of crypto or active traders. Users should secure their hot wallets with strong passwords, two-factor authentication, and backup keys. For larger holdings, cold wallets are recommended for enhanced security. Hot wallets remain essential tools for interacting with decentralised applications and DeFi platforms.

Related Words

HODL

Beginner

Short for "Hold On for Dear Life", HODL means holding onto one's assets despite market fluctuations. It is a slang term in crypto that emerged from a misspelling of "hold".

Hash Function

Advanced

A hash function converts any input into a fixed-length string of characters, creating a unique digital fingerprint. It plays a vital role in securing data, linking blocks, and enabling digital signatures in decentralised systems.

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Trading in Virtual Assets involves significant risk, including the potential loss of your entire capital. None of our communications are intended to provide investment, legal, or financial advice, nor to induce you to trade in such instruments. You should assess your risk tolerance and seek independent expert financial advice before trading. You must ensure that your use of BitDelta’s services complies with all applicable laws and regulations, as further detailed in our Terms and Conditions. Please carefully review our Terms and Conditions, Risk Disclosure Statements, and Security and Privacy Policies to understand the risks involved and the limitations on our liability before using our services.​
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