#CryptoSecurity101
Hot wallets are cryptocurrency wallets connected to the internet, allowing users to easily transact or access their assets.
Characteristics of hot wallets:
• Online connection: Operates when your device (computer, phone) has internet.
• Convenient:
• Easy to transact quickly.
• Suitable for frequent activities like trading, staking, or participating in DeFi projects.
• Common examples:
• Wallet applications: MetaMask, Trust Wallet, Coin98 Wallet.
• Exchange wallets: Binance, Coinbase, KuCoin.
Advantages:
• Fast, convenient, easy to use.
• Suitable for frequent traders.
Disadvantages:
• High risk of being hacked: Due to constant internet connection, easy to be attacked if you are tricked by phishing emails or other security flaws.
• Dependent on the system: If the hot wallet platform has a flaw or the exchange is hacked, you may lose your assets.