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
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