Hot Wallets

A hot wallet is the simplest wallet type in Sigvault. It uses a single system-managed key, meaning the signing key is generated and stored on the Sigvault server. No hardware wallet is required.

When to Use a Hot Wallet

Hot wallets are best suited for:

Everyday spending — Quick transactions without device interaction
Small amounts — Funds you’re comfortable having in a custodial setup
Application integration — Automated payments via the API
Testing and development — Getting started without hardware

Since the private key is managed by the system, transactions can be signed immediately without user interaction on a hardware device.

How It Works

Wallet Creation — Sigvault generates a system-managed key and creates a single-signature descriptor wallet
Receiving — Generate addresses from the web interface or API
Sending — Build and sign transactions directly through the system, no device needed
Monitoring — Track balance, transactions, and UTXOs in real-time

Custody Model

With a hot wallet, Sigvault holds the private key. This is a custodial arrangement — the system can sign transactions on your behalf. This offers convenience but means you are trusting the Sigvault infrastructure with your funds.

For non-custodial alternatives where you control the keys, see Single Signature Wallets or Multisig Wallets.

Creating a Hot Wallet

From the web application:

Navigate to Wallets and select Create Wallet
Choose the Hot Wallet template (or select “Trading Hot Wallet” from the template library)
A system device is automatically assigned
Review and confirm the wallet configuration

The wallet is ready to use immediately after creation.

Considerations

Security tradeoff — Convenience comes at the cost of custodial trust
No hardware required — Ideal for getting started quickly
API-friendly — Automated signing for programmatic workflows
Single point of failure — One compromised key means total loss of funds in the wallet