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Concepts
Hot Wallet
Online-connected wallet for fast operations, smaller balances
What is Hot Wallet?
A wallet with keys on an internet-connected server, used by exchanges for real-time user deposits/withdrawals. Holds only operational liquidity (typically 1-5% of total custody) — large hot-wallet inflows often precede sells.
Context anchor
Hot wallets hold ~1-5% of exchange custody; cold holds the rest
Example
Binance hot wallet processed 8,400 BTC of user withdrawals in 24h
Also known as
hot wallethot storageonline walletexchange hot