Hot Wallet
A wallet that runs on an internet-connected device for everyday convenience.
A hot wallet is a wallet whose private keys live on a device that is connected to the internet, such as a phone or a desktop computer. Its strength is convenience: sending and receiving coins is quick and easy, which suits everyday spending and receiving mining rewards. Its weakness is exposure, because anything that can reach the device, from malware to phishing, can potentially reach the keys. For that reason, disciplined holders keep only modest, spendable amounts in a hot wallet and move larger balances into cold storage. A sensible setup uses a hot wallet like a current account and cold storage like a savings account, sweeping excess from one to the other regularly.