A hot wallet is a crypto walletCrypto walletAn app or device that holds the keys to your crypto and lets you receive, store and send it. that keeps its private keysPrivate keyA secret number that proves you own the crypto in your wallet. Whoever holds the private key controls the crypto. on a device connected to the internet. Examples are wallet apps on your phone, browser extensions and desktop programs. A hot wallet is convenient, but being online makes it easier to attack than a cold walletCold walletA way of storing the keys to your crypto completely offline, so hackers on the internet can't reach them..
How does a hot wallet work?
You download an app, create a wallet and write down your seed phraseSeed phraseA list of 12 or 24 words that backs up every key in your wallet, so whoever has the words can restore the wallet and take the crypto.. The keys are stored encrypted on the device, and the wallet uses them to sign a transaction the moment you press send. That makes a hot wallet practical when you use crypto often, for example to pay someone or to try apps on Ethereum.
What are the risks?
A hot wallet is like the wallet in your pocket. You carry what you need day to day, but you don't keep all your savings in it.
The main threats are:
- malware that reads keys or swaps the wallet addresses you copy and paste
- PhishingPhishingA scam where criminals pretend to be a trusted company or authority to get you to hand over passwords, card details or your seed phrase., where fake sites or apps ask for your seed phrase
- a lost or stolen phone that isn't properly locked
To lower the risk, download the wallet only from its official website, the App Store or Google Play. Keep your phone updated and locked, and never type your seed phrase into a website.
Everything in Myntkaup Learn is written and regularly reviewed by the Myntkaup editorial team. It is for education and is not investment advice. Editorial policy. Updated 18 October 2026.