How it works
The connection makes regular transactions convenient and supports interaction with exchanges and decentralized applications. It also increases exposure to malware, phishing and compromised devices.
What to check
Check whether the wallet is custodial or self-custodial, how keys are protected and which permissions connected applications receive.
- Know who holds the keys
- Use strong device security
- Review connected-app permissions
Limits and risks
Convenience increases the attack surface. A hot wallet may be appropriate for active use while still being a poor place for assets that do not need frequent access.
Primary sources
Bitcoin Developer Reference↗Ethereum developer documentation↗FATF: Virtual Assets↗General information only. Investment products can lose value, and terms, fees and regulation can change.