I have just thoroughly researched these two types of digital wallets and found that they are quite important when you start getting into crypto. Basically, hot wallets and cold wallets differ in that: hot wallets are always connected to the Internet, making them very convenient, while cold wallets operate offline, making them much safer.

If you trade frequently, a hot wallet is the natural choice. It allows quick access, enabling you to buy and sell coins instantly without complicated steps. Mobile app wallets like Trust Wallet or web-based wallets like MetaMask are very popular. But the trade-off is that they are more vulnerable to attacks because they are always online.

Conversely, cold wallets are a "fortress" of security. They do not connect to the Internet, so they are almost impossible to hack remotely. If you want to hold coins long-term without worry, a cold wallet is the best way. Hardware wallets like Ledger Nano S or Trezor are common options, or even paper wallets where you print out both the private key and public key. However, when you need to make transactions, you have to spend extra time setting them up.

Therefore, choosing between a hot or cold wallet depends on your personal needs. I see many people use both: hot wallets for daily transactions, and cold wallets to store their main coins. This method is both convenient and safe.