A hot wallet is a software application, a browser extension or a mobile app, that stores your private keys and lets you sign transactions directly from your device. It's called "hot" because it's always connected to the internet, like a wallet you carry in your pocket every day.

This is the tool you use to interact with DeFi, sign into dApps, swap tokens on a DEX, participate in airdrops and manage your day-to-day crypto activity. Without a hot wallet, you can't do anything on-chain. It's the starting point for everyone.

The tradeoff is security: because it lives on a device connected to the internet, it's exposed to malware, phishing attacks and browser vulnerabilities. A hot wallet is the front door of your crypto house, useful and necessary, but not where you store your life savings.