Hot wallet is an online tool that allows the owner of cryptocurrency to send and receive tokens. Unlike traditional currencies, there is no physical wallet or dedicated bank that can be used to keep currency holdings secure. Cryptocurrency wallets are commonly used to keep and protect these holdings from traditional breaches. Cryptocurrencies wallets comes in different varieties and forms.
One of the most popular kinds and commonly used is hot wallet. Hot wallet is linked with the internet to secure the private and public keys. It also facilitate the transactions and act as a security measures. However hot wallet is not an unsafe way to keep your holdings secure but when compared with cold storage or cold wallet, it tend to be somewhat more vulnerable to thefts and hacks. Hot wallet is connected to the internet, so there is always chance of hacking by other parts of the internet.