A hot wallet is any cryptocurrency wallet that stays connected to the internet: mobile apps such as MetaMask or Trust Wallet, browser extensions, or even the balance held in custody on a CEX.
Advantages
It's the most practical option for regular use: interacting with DEXs, paying with crypto, or moving funds quickly without needing an extra physical device.
The risk it carries
Because it's always connected, it's more vulnerable to malware, malicious browser extensions, phishing (fake websites that mimic a real protocol), or vulnerabilities in the device itself. That's why it's recommended to keep only the amounts you need for short-term use in a hot wallet.
Common best practice
Combine both types of wallet: use a hot wallet for day-to-day activity and move the bulk of your funds to a cold wallet for long-term custody.