What is a Hot Wallet?

Tokens can be stored, sent, and received using an internet-connected wallet known as a Hot Wallet. Those wallets are secured using public and private keys, which facilitate transactions and provide security.

A Hot Wallet is an online cryptocurrency wallet that allows the owner to receive and send cryptocurrencies to other people. Digital assets are saved and transferred via a user’s private key, which is kept in a database accessible over the internet.

Instead of holding cryptocurrency on an exchange, Hot Wallets provide a more secure storage option.

Cold Wallets and other hardware devices on the other hand stores cryptocurrency offline, which is a safer option.
(We will be sharing about this in our next article, stay tuned)

Secure transactions involving digital assets are achievable, even while using a Hot Wallet.

The Algorand ecosystem offers Hot Wallets such as MyAlgo, Pera Wallet, and AlgoSigner.

Related educational contents:
What are Digital Wallets?
What is a Hot Wallet?
What is a Cold Wallet? (coming soon)
What is a Single-sig Wallet? (coming soon)
What is a Multi-sig Wallet? (coming soon)
Multi-sig for teams (coming soon)
Single-sig VS Multi-sig Wallet & MPC VS Multi-sig Wallet (coming soon)

About Algo Foundry
Algo Foundry is a venture studio enabling founders to focus on building world-class dApps. An initiative by Algorand Foundation and Undercurrent Capital, our resources, playbooks, systems, developer talent, network, and capital accelerate ideas by simplifying and optimizing the company creation process. We also cultivate next-gen Algorand developers through our courses to be future-ready leaders in building great products.
Website | LinkedIn | Twitter | Discord | YouTube | Reddit

About Undercurrent Capital
Undercurrent Capital is an early stage investment firm that partners leaders and visionaries in business and society to tackle their most important challenges. We believe bold steps define the future, and the ambition to lead requires singular vision, dedication and flexibility to adapt.
Website | LinkedIn | Twitter