Hot wallets are always connected to the internet. They are available as software or apps for smartphones and computers, making them free and easy to use. However, since the private keys in hot wallets are stored online within the apps, they are more susceptible to remote hacking, malware, and phishing attacks compared to cold wallets.
Cold wallets are offline solutions specifically designed to store cryptocurrency, and they never connect to any network. This means that private keys are stored offline, providing strong protection against unauthorized access and online threats. Hardware wallets, a common type of cold wallet, offer additional security by keeping private keys isolated from any internet-connected devices, making them one of the safest options for long-term cryptocurrency storage.