Glossary · Security

What is Hot wallet?

A hot wallet holds keys on a connected device: a browser extension, a phone, a server. Connectivity is the point, instant signing for everyday flow, and connectivity is the risk, anything the device can reach can reach the keys.

Hot wallets are for velocity, not value: payment float, trading balances, the gas tank. The discipline is replenishment from cold storage on a schedule, so a compromise costs a day's float instead of the treasury.

Hot wallet on U.CASH

Checkout wallets and swap wallets are hot by nature; U.CASH's non-custodial design keeps even those keys yours, so the exposure decision, hot float size, cold sweep cadence, stays with the holder.

See also

Cold walletNon-custodial

Hot wallet: FAQ

Can a hot wallet be safe enough for a business?
Yes, sized honestly: a hot wallet holding one day of float is a manageable risk; one holding the quarter's revenue is a target. The architecture supports the right split because custody is never forced.
What actually compromises hot wallets?
Almost always the human surface: malicious browser extensions, clipboard swappers, phishing seeds. The device is rarely broken; the operator is tricked.
Keep reading

The glossary, A to Z

Every term behind the rails, the assets, and the settlement.