A Hot Wallet is a cryptocurrency wallet that is connected to the Internet. Wallets can be classified as either hot or cold. Hot simply means that a wallet is connected to the Internet, perhaps because it's a wallet at a centralized cryptocurrency exchange or a wallet offered as a web browser extension on your desktop […]
Example
“The exchange kept 10% of customer funds in a hot wallet for instant withdrawals, while the remaining 90% was secured in cold storage vault addresses.”