What is the difference between a hot wallet and a cold wallet?

A hot wallet is an online or cloud-based cryptocurrency wallet, while a cold wallet is an offline/physical storage device. A hot wallet is convenient but less secure and more vulnerable to hacking or theft, while a cold wallet is much more secure because it stores cryptocurrencies offline. Cold wallets are often used for the long-term storage of cryptocurrencies, while hot wallets are used for the more frequent, day-to-day trading of cryptocurrencies.