A hot wallet is a virtual currency wallet that is connected to the Internet. It is also called hot storage.
A hot wallet can be accessed from anywhere through nearly any device as long as you can connect to its online environment. The virtual currency held within can be moved quickly and easily, making for a convenient method of storage for virtual currency traders.
Although hot wallets are very convenient, always being connected to the internet means that there is a possibility of them being accessed without proper authorization and their contents being lost. Due to this, stronger security measures such as two-factor authentication and biometrics are becoming more common.
Conversely, storing virtual currency in a cold wallet offers less convenience by being completely disconnected to the Internet, but the level of security is significantly higher for a wallet that nearly negates the risk of unauthorized access.