On occasions small sums become large sums 





I understand all of these nuances) I'm wondering what users do. Personally, I don't keep large sums on hot wallets, so I keep the seed phrases just in the password manager and I'm not too worried if I lose access to the hot wallet. Since it would be a small loss.

Monotone

I write the seed down & store in a few different locations. Password managers feel too risky IMO

As for the amount kept on a hot wallet, whatever you're comfortable with. Lightning & mixing/coinjoin need to be in hot wallets, so there's more risk but greater privacy/less fees/instant settlement etc.

bitcoin

Security of "hot" onchain and LN wallets

I write the seed down & store in a few different locations. Password managers feel too risky IMO

As for the amount kept on a hot wallet, whatever you're comfortable with. Lightning & mixing/coinjoin need to be in hot wallets, so there's more risk but greater privacy/less fees/instant settlement etc.