Cryptocurrency is digital money. You can store it in a cryptocurrency wallet. A cryptocurrency wallet is an app or hardware that allows you to make transactions with your digital coins. These wallets have different features and functions, but each has pros and cons. Here’s what you need to know about them. A cryptocurrency wallet is an online software program that stores private and public keys. It allows you to access your funds, make transactions, and check your balance. You can also generate public and private keys for different cryptocurrencies. It’s important to remember that a hot wallet isn’t safe from hackers because it is connected to the Internet. So, to keep your cryptocurrency safe from hackers, use cold storage instead of a hot wallet. A hot wallet is an online or mobile app that allows you to transact with cryptocurrency, transfer money between wallets, and trade for other assets like Bitcoin (BTC) and Ethereum (ETH). You can use it for trading. For example, if you want to buy a certain amount of Bitcoin but don’t have enough funds in your bank account, you could use a hot wallet instead of transferring money from your bank account into an exchange through an ACH transfer. The downside is that if someone steals your login information or gains access to the device where your private keys are stored, they will also be able to access all of the cryptocurrencies stored there.
Full explanation : Cryptocurrency hot wallet explained.