Hot and cold wallets are two different types of cryptocurrency wallets, which are used to store and manage digital assets, such as Bitcoin and Ethereum. A hot wallet is a wallet that is connected to the internet, and it is used for more frequent transactions. A cold wallet, on the other hand, is a wallet that is not connected to the internet, and it is used for long-term storage of cryptocurrencies. Cold wallets are considered to be more secure than hot wallets, as they are less vulnerable to hacking and other online threats. Hot wallets are more convenient to use, but they are also more susceptible to security risks. Most people use a combination of hot and cold wallets, depending on their needs and the amount of cryptocurrency that they are holding.