Hot Wallet
SECURITYDEFINITION
A wallet whose private keys live on an internet-connected device — convenient like the cash in your pocket, and exposed like it too.
Phone and desktop wallets are hot: great for spending, dangerous for savings, because anything that compromises the device can reach the keys. Every exchange balance is effectively someone else’s hot wallet with your name on a ledger.
The rule from our reviews: a hot wallet holds what a physical wallet holds. Salary-sized amounts belong in cold storage. Our hot wallet picks (Blockstream Green, BlueWallet, Phoenix) are chosen for making that split easy.
IN A SENTENCE
“He keeps fifty dollars of Lightning balance in a hot wallet for coffee and tips.”
Key facts
Common questions
Are hot wallets unsafe?
They are appropriately safe for small amounts — the risk is proportional to what you store. The mistake is savings on a phone.
Hot wallet or exchange balance?
A self-custodial hot wallet — at least the keys are yours. Exchange balances add counterparty risk on top of hot-key risk.