General
Beginner
Updated 1/15/2025
What is
Hot Wallet?
A cryptocurrency wallet connected to the internet, providing convenient access for daily transactions but with higher security risks than cold storage.
A hot wallet is any cryptocurrency wallet that maintains an active connection to the internet, whether through a browser extension, mobile app, or desktop application. Hot wallets prioritize convenience and accessibility, making them ideal for frequent transactions, DeFi interactions, and everyday use. However, because private keys are stored on internet-connected devices, hot wallets are more vulnerable to hacking, malware, and phishing attacks. Popular Ergo hot wallets include Nautilus (browser extension), SAFEW (web wallet), and Ergo Mobile Wallet (iOS/Android).
Key Points
- Always connected to the internet for quick access
- Ideal for daily transactions and DeFi interactions
- Higher security risk than hardware/cold wallets
- Ergo options: Nautilus, SAFEW, Ergo Mobile Wallet
- Should only hold funds needed for regular use
- Vulnerable to malware, phishing, and device compromise
Use Cases
1
Daily cryptocurrency transactions and payments
2
Interacting with DeFi protocols (DEXs, lending, etc.)
3
Quick access to funds for trading
4
Receiving payments and airdrops
5
Testing and development with small amounts
Technical Details
Hot wallets store encrypted private keys on the device (browser storage, app data, or local files). When signing transactions, keys are decrypted in memory. Security depends on device security, password strength, and user vigilance against phishing. Nautilus uses browser extension security model, SAFEW stores encrypted keys in browser storage, and mobile wallets use device secure storage APIs.
Related Infographics
Related Articles
Frequently Asked Questions
Questions about Hot Wallet
Common questions about this topic
How to get started with Ergo?
Start by getting a wallet (Nautilus for browser, Terminus for mobile). Back up your seed phrase securely offline. Get some ERG from an exchange (Gate.io, KuCoin) or DEX (Spectrum). Make a test transaction. Then explore: try DeFi on Spectrum, check out NFTs, or dive into the technology if you're a builder.
How-to
Getting Started
What is the best wallet for Ergo?
Nautilus is the most popular Ergo wallet - a browser extension supporting all Ergo features including tokens, NFTs, and dApp connections. For mobile, use Terminus. For maximum security, pair Nautilus with a Ledger hardware wallet. Always backup your seed phrase offline.
Explainer
Getting Started
Is Ergo a good investment?
This is not financial advice. Ergo has strong fundamentals: fair launch (no VC dump risk), innovative technology (eUTXO, Sigma Protocols, NiPoPoWs), active development, and a cypherpunk ethos. It's a smaller market cap project with higher risk/reward than established chains. Research thoroughly, understand the technology, and never invest more than you can afford to lose.
Comparison
Getting Started
How to buy ERG cryptocurrency?
Buy ERG on centralized exchanges (KuCoin, Gate.io, CoinEx) or decentralized exchanges (Spectrum Finance). First create a wallet (Nautilus recommended), then purchase ERG and withdraw to your wallet. Never leave large amounts on exchanges - self-custody is key.
How-to
Getting Started