The 3 Different Kinds of Crypto Hot Wallets

If you're considering using hot wallets, there are multiple types available. Explore the most popular options in this article to decide what will suit you best
By 

Josiah Makori

 on August 22, 2022. 
Reviewed by 

Michelle Meyer

A hot wallet is a type of crypto wallet connected to the internet and a blockchain network, as opposed to a cold wallet that keeps your digital assets offline. You can use a hot wallet to see the number of coins you have as well as swap, send, receive, and hold digital assets.

One of the major benefits of this crypto wallet is they're easy to use. Since they're purely online-based, you don’t need to connect a hardware wallet to execute a transaction. You simply log into your wallet to use its services.

Types of Crypto Hot Wallets

There are multiple types of crypto hot wallets that you can download and use for free. Some function through specific mobile web apps, while some accept and support crypto transfers to particular exchanges.

Below are three of the most popular types of hot wallets:

MetaMask

MetaMask is a web3 wallet that enables you to store, swap, send, and receive digital assets from almost all major networks. It was created to increase interoperability across blockchains.

MetaMask is open-source software that allows you to fully connect to various ecosystems and interact with Decentralized Finance (DeFi) applications, such as borrowing and lending platforms. In other words, it allows you to use a DeFi app without necessarily hosting a complete node. MetaMask leverages JavaScript to embed a web3 code into DeFi apps.

Coinbase Wallet

Like MetaMask, the Coinbase Wallet is a web3 wallet that allows you to remain in control of your private keys. It doesn’t require you to pass any verification process to use it.

The Coinbase Wallet is one of the most secure hot wallets in crypto. It was developed to support the Ethereum ecosystem but has since grown to support numerous other networks. The wallet makes it easy to send, swap, receive, and hold crypto.

Additionally, the Coinbase Wallet lets users participate in airdrops and ICOs, interact with DeFi apps, and collect Non-Fungible Tokens (NFTs).

Trust Wallet

Trust Wallet is an open-source hot wallet that supports numerous cryptocurrencies and networks. It was originally intended to support ERC-20 and ERC-223 tokens, but has extended to support all cryptocurrencies and NFTs.

Trust Wallet has an intuitive user interface and is easy to download and install. It’s equipped with a web3 browser that lets users purchase digital assets directly through the Kyber Network’s decentralized exchange. It also allows users to leverage the Trust Wallet application to link to other DeFi apps.

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