Hot wallet

A wallet on an internet-connected device. Convenient for everyday spending. Less secure than cold storage for large amounts.

A hot wallet is a Bitcoin wallet running on a device that is connected to the internet — typically your phone or laptop. It is the most convenient form of wallet because you can transact instantly, no extra hardware needed.

The trade-off is attack surface. A phone or computer can be compromised by malware, phishing, or physical theft in a way a dedicated cold device generally can't. For everyday spending amounts that's acceptable. For your long-term savings stack, cold storage is the standard.

BTCBitByBit's in-app wallet is a hot wallet by design — it's built for everyday use. Many users keep their daily spending balance here and store larger amounts on a hardware wallet. The seed phrase recovery flow lets you restore the same wallet onto any compatible device, hot or cold.

Learn this in our courses

Course topic

Wallets & self-custody

How to store Bitcoin so that nobody — not even us — can take it.

Related terms

Glossary

Cold wallet

A wallet whose private keys never touch an internet-connected device. Maximum security, less convenience.

Glossary

Hardware wallet

A dedicated physical device that stores private keys offline and signs transactions internally.

Glossary

Self-custody

Holding your own Bitcoin private keys. Nobody can freeze, seize, or lose your sats — except you.

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