Online wallets are also known as "hot" wallets. Hot wallets are wallets that run on internet-connected devices such as computers, phones or tablets. Hot wallets running on the internet can create a security gap because these wallets generate the private keys of your funds on internet-connected devices. While a hot wallet can be very useful for the way you access and trade your assets quickly, storing your private key on an internet-connected device leaves your assets more vulnerable to hackers' attempts. You may think that this possibility is not logical but the assets of those who do not take adequate security measures while using hot wallets are compromised and this is not uncommon. There are various methods of this fraud. As an example, in a public forum like Reddit, it wouldn't be wise to brag about how much Bitcoin you hold (although you do without adequate security measures) and store it in a hot wallet. However, these wallets can be kept secure as long as precautions are taken. Strong passwords, two-factor authentication and secure internet browsing should be considered as the minimum requirements in terms of security. The most effective method of using these wallets is to store small amounts of cryptocurrency that you actively trade on an exchange. You can compare a hot wallet to a checking account. People who are traditionally involved in finance keep a small amount needed for their expenditure while keeping most of their assets in places such as savings accounts. Hot wallets include mobile, desktop, web, and currency account storage wallets.