Definition of Hot Wallet

A hot wallet refers to a cryptocurrency wallet that is always connected to the internet. It facilitates token transactions between users. A hot wallet allows you to store, send, and receive tokens.

How Hot Wallets work

When you want to enter the world of crypto, you have to set up a wallet to facilitate transactions.

When setting up a wallet, you’re given private keys to identify that it actually belongs to you. The public key of a wallet is similar to a bank account number;  they identify the wallet so that the user can receive tokens without revealing their identity. Private keys are similar to personal identification numbers; they allow you to access the wallet and check balances, initiate transactions, and much more. Without either of these keys, the wallet is effectively useless.

More research on hot wallets

This article shows more information regarding Hot Wallets: Article