Warm Wallet

Definition ∞ A Warm Wallet is a cryptocurrency storage solution that maintains a persistent connection to the internet, offering convenient access to digital assets. Unlike cold storage, which is completely offline, warm wallets provide a balance between accessibility and security for frequently traded or used funds. Examples include desktop wallet applications or mobile wallets that require an internet connection for transactions. While more accessible than cold storage, they carry a higher risk of cyberattack due to their online presence.
Context ∞ Warm Wallets are frequently discussed in crypto news concerning user security, exchange operations, and the trade-offs between accessibility and risk. News reports often advise users on best practices for securing warm wallets, such as using strong passwords and multi-factor authentication. The security of warm wallets is a constant consideration for exchanges and service providers, who implement various measures to protect customer funds. Understanding the characteristics of warm wallets is essential for individuals managing digital assets, balancing ease of use with necessary precautions.