A hot wallet is a cryptocurrency wallet which is or was connected to the internet. One of the advantages of hot wallets is that they can be used to make small everyday transactions. However, using it to keep larger amounts of coins is not recommended, as it is vulnerable to attacks. One of the most common types of hot wallets is software wallets and its subtypes. To achieve maximum security, it is recommended to use a hardware wallet, such as Trezor.
See also: Type of cryptocurrency wallets