A hot wallet is connected to a web server, and it initiates a financial transaction involving cryptocurrency via browser-based webpages. It does not, however, store virtual currencies. Instead, its key role is to sign and authorize financial transactions digitally. The hot wallet server facilitates the conventional hot wallet service since it stores cryptographic keys and is accessible to the webserver.
After a holder decides to mine digital currency, the cryptocurrency network enforces a chronological order to safeguard the neutrality of the cryptocurrency system. A holder then decides where and how to store the tokens, forcing the financial transaction to be digitally signed. The transaction is then propagated into a cryptocurrency network.