As you get into the world of bitcoin trading you come across several tools that you can use in order to store your bitcoin both online and offline. The ones that are offline are known as cold wallets while the ones connected with the internet are known hot wallets. A hot wallet is a tool you can use for buying, selling, and storing your bitcoins online. These wallets are linked with public and private keys that enable them to do secure transactions. As these wallets are connected to the internet they are more vulnerable to hacks and online thefts as well.
Investors prefer hot wallets as it is much easier and faster to use than your traditional online wallet or cold wallets. Which is why hot wallets are much popular when it comes to trading.
Hot wallets are seen as programmable software that allows its users to send and receive bitcoin tokens. As hot wallets do not store any of your bitcoins like your traditional wallets. They are just a tool that helps you in changing the records of transactions that are stored on the blockchain block. As a user public and private keys are the most important aspect of any online or offline wallet. These keys enable any user to locate his/her wallet and perform any kind of transaction.
There are software hot wallets in the market that gives you complete control over your online transactions as you maintain your public and private keys on your own. This method is still prone to hacking and online theft as anyone with access to your PC will automatically get access to your private keys as well.
This is what a hot wallet is all about. To create a free online hot wallet and start with your bitcoin adventure you can look at this web-site.