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Hot Wallet

A wallet connected to the internet for day-to-day spending or trading. It is convenient but generally less secure than offline storage.

Hot wallets trade exposure for availability: keys on a networked device face malware, clipboard swaps, and phishing, and custodial hot wallets add the platform’s own risk.

The common practice is a split: a small spending balance hot, the remainder cold. The split point is a personal risk decision, and moving funds between the tiers has its own on-chain visibility on transparent chains.

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