Definition ∞ A hot wallet compromise signifies the unauthorized access to or control over a cryptocurrency wallet that is connected to the internet. Since hot wallets are online, they are more susceptible to cyberattacks and theft of private keys. Such a compromise directly threatens the digital assets stored within.
Context ∞ Hot wallet compromises are frequently reported in crypto news, often leading to substantial losses for exchanges and individual users. These incidents highlight the ongoing security challenges in the digital asset sector and the critical importance of robust cybersecurity measures. Discussions often center on the balance between convenience and security, with cold storage solutions advocated for larger holdings.
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