A hot wallet is any wallet whose keys are on an internet-connected device, such as a mobile or browser wallet. It is the default way most people first store crypto.
Hot wallets are free, instant to set up and convenient for daily transactions, DeFi and NFTs. They are the right tool for spending and trading.
Because they are online, hot wallets are exposed to malware, phishing and the security of the device they run on. A single compromised device can drain everything.
Keep only small amounts in a hot wallet, use a reputable wallet, avoid suspicious sites and links, and never store your seed phrase digitally.
Hot wallets are fine for everyday use and small balances. For savings, move your funds to a hardware wallet.