Both hot and cold Bitcoin wallets have their advantages. Hot wallets feature an internet connection, while cold wallets are offline hardware devices. For this reason, cold wallets are generally a more secure long-term Bitcoin storage option.
Many Bitcoin users start with hot wallets because they are easy to set up, simple to use on desktop or mobile, and usually free. Thanks to their internet connection, hot wallets offer a quick, seamless crypto trade and exchange experience for everyday transactions. If you use Bitcoin often, nothing can beat the convenience of a hot wallet.
However, keep in mind that while exchange wallets are usually hot wallets, top crypto exchanges use cold storage for most of their funds for optimum security. Hardware wallets store private keys on a physical medium, making them inaccessible to hackers.