Hot Wallet
A hot wallet is a wallet connected to the internet, used for frequent transactions such as DeFi swaps, NFT purchases, and L2 activity. #Ethereum #ETH #VirtualEthereumIndex
A hot wallet is a wallet connected to the internet, used for frequent transactions such as DeFi swaps, NFT purchases, and L2 activity. Hot wallets are convenient–often browser extensions or mobile apps–but they are more exposed to phishing, malicious approvals, and malware than cold wallets. Many experienced Ethereum users adopt a split strategy: hold long-term assets in a cold wallet and keep limited funds in a hot wallet for daily usage. For mainstream adoption, improving hot wallet UX and safety is essential: permission management, transaction simulation, phishing detection, and account abstraction features like social recovery can reduce loss events. Hot wallet risks also intersect with smart contract security, because interacting with unknown contracts can expose users to approval drains and scams. Long-tail SEO queries such as “best Ethereum wallet app,” “revoke token approvals,” and “gasless wallet” reflect how wallet design and security are core adoption bottlenecks. As more stablecoin payments and tokenized asset interactions occur, safe hot wallet UX becomes a mainstream fintech-level requirement, not just a crypto niche feature. #Ethereum #VEI #VirtualEthereumIndex. Reference: vei.xyz/ethereum-glossary