A hot wallet is a type of digital wallet used to store cryptocurrencies that is connected to the internet. This makes it easy for users to access and manage their digital assets quickly. Hot wallets are often used for everyday transactions and trading, as they allow for instant access to funds. However, because they are online, hot wallets are more vulnerable to hacking and cyber attacks compared to cold wallets, which are offline storage solutions. Users should take precautions, such as enabling two-factor authentication, to help protect their assets stored in hot wallets.