A hot wallet is a wallet that is connected to the internet, such as an online cryptocurrency exchange or web wallet. Hot wallets are designed for faster transactions and more convenient access, so they’re ideal for day-to-day use.
A cold wallet is a wallet that isn’t connected to the internet. Cold wallets are typically stored on a physical device, such as a USB drive or hardware wallet, and are designed for long-term storage and increased security. Cold wallets can be used to store large amounts of cryptocurrency for extended periods of time without fear of hacking or theft.