The main difference between hot wallets and cold wallets is that hot wallets are connected to the internet through your computer or phone, while cold wallets are hardware devices (or physical media) that can keep your data offline.

Considerations

A hot wallet is connected to the internet and could be vulnerable to online attacks — which could lead to stolen funds — but it's faster and makes it easier to trade or spend crypto. A cold wallet is typically not connected to the internet, so while it may be more secure, it's less convenient.