Hot wallet
A crypto wallet whose private keys are kept on an internet-connected device or server, convenient but more exposed to attack.
A hot wallet stores private keys on a device or server connected to the internet. Phone and browser wallets are hot wallets, and so are the wallets casinos and exchanges use to process withdrawals.
Why it matters for casino players
Casinos keep only part of their funds in hot wallets so they can pay withdrawals quickly. The rest sits in cold storage, offline. If a casino's hot wallet runs low, large withdrawals may wait for a manual top-up from cold storage, which is a common legitimate reason for delays on big payouts.
Hot wallets are also the usual target of casino and exchange hacks. A casino that keeps most player funds in a hot wallet is taking a risk with your money.
For your own funds
- A self-custody hot wallet on your phone is fine for small amounts you plan to use.
- Use a hardware (cold) wallet for larger holdings.
- Back up your recovery phrase offline and never type it into a website or share it with support staff.