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Last updated 2026-11-05

What Is a Hot Wallet?

A hot wallet is a wallet whose key is available to a device that is connected to the internet. This page explains where the exposure comes from, why that is normal for spending money, and how to keep the amount at risk small.

Who this is for

People who use a phone wallet or browser extension every day, and anyone deciding how much BTG to leave in the wallet they actually use.

What it is

A hot wallet is any wallet where the signing key sits on an online device and can produce a signature without an offline step. A mobile app, a browser extension, and a desktop program all qualify. The label describes where the key lives, not how the wallet looks.

Consider a typical setup: MetaMask in your browser, connected to Bitgold mainnet with chain ID 618. You approve a swap, the extension decrypts the key locally, signs, and broadcasts — the whole exchange takes seconds, and that speed is the product.

The exposure does not come from "the internet" in general. It comes from specific things on the same device: malware that reads files and the clipboard, extensions with broad permissions, a fake site that asks for your recovery phrase, and a phone that someone else can unlock. Each of those paths needs the key on a connected device, which is exactly what a hot wallet is.

Why it matters

A hot wallet should hold the amount you would carry in a physical wallet: enough for gas and near-term spending, not your savings. The right response is a limit, not abstinence. You need BTG in an online wallet to pay gas, sign in to the Console, and move quickly when something needs attention.

The size of the balance is your blast radius. If a wallet holding a week of spending is compromised, the loss is survivable. If it holds everything, a single bad approval can empty it.

Moving BTG between hot and cold is an ordinary transaction on the chain and costs gas like any other. Plan the move rather than doing it in a hurry.

Common misunderstandings

  • "Hot wallets are hacked because the chain is insecure." The chain is not the weak point. The device, the apps on it, and the signatures you approve are.
  • "A strong app password makes a hot wallet safe." The password encrypts the local wallet file. It does not change the fact that a connected device holds a usable key.
  • "I will keep my savings online but use a careful wallet." Careful habits help with approvals, not with malware that reads the key file.
  • "Cold storage is always the better choice." It is better for savings and worse for daily use. Most people need both.

Key takeaways

  • A hot wallet is defined by a key that a connected device can use to sign.
  • It is appropriate for spending money and gas, and a poor home for savings.
  • Exposure comes from the device, its apps, and the approvals you grant.
  • Keep the balance small enough that a compromise is recoverable in practice.

Next steps