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Burner Wallet Meaning

A burner wallet is a temporary or disposable cryptocurrency wallet created for short-term or high-risk use. It is commonly used to interact with unfamiliar protocols, mint NFTs, claim airdrops, or test new applications.

Key characteristics of burner wallets include:

Burner wallets reduce exposure by isolating risk. If a malicious smart contract is encountered, losses are limited to the assets held in the disposable wallet rather than an entire portfolio.

Modern hierarchical deterministic (HD) wallets allow users to generate multiple burner wallets from a single recovery phrase, making them easy to create and discard while maintaining operational security.

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