Hot storage is defined a type of digital data storage that provides immediate access. Hot storage is often connected to the Internet. Also known as a “hot wallet”.
Unlike cold storage, hot storage is typically connected to other computers, networks or the Internet. Hot storage always has rapid access times. Shorter access times means less control and security.
There are many types of hot storage including:
- Storing your cryptocurrency on an exchange.
- Storing your cryptocurrency on an often connected computer.
- Storing your cryptocurrency on cloud storage.