Hot Wallet
A cryptocurrency wallet connected to the internet, offering convenience but more exposure to potential hacks.
Hot wallets include browser extensions (MetaMask), mobile apps (Coinbase Wallet, Phantom), and desktop wallets. They're connected to the internet, which makes them convenient for everyday transactions but more vulnerable to attacks.
Most people's day-to-day crypto interactions happen through hot wallets. You use them to swap tokens, interact with DeFi, and send payments. They're fast and easy.
The security trade-off is real. If your phone gets compromised or you click a malicious link, a hot wallet's keys could be exposed. Best practice: keep only the USDC you need for regular use in a hot wallet. Move larger amounts to cold storage.
Related Terms
Cold Storage
Keeping cryptocurrency keys completely offline, disconnected from the internet, for maximum security.
Hardware Wallet
A physical device that stores cryptocurrency private keys offline. The most popular form of cold storage.
Wallet
Software or hardware that stores your private keys and lets you send, receive, and manage cryptocurrency.
Self-Custody
Holding your own private keys, giving you full control over your cryptocurrency without relying on a third party.
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This definition is provided for educational purposes. USDC.org is an independent resource and is not affiliated with Circle Internet Financial.