Hot wallets are basically wallets that are connected to the internet that may or not may not be controlled by third parties. They are easier to access but more vulnerable to hacking than cold wallets. So it is important to choose a wallet that is well-known for its security. Hot wallets can be used when you are going to be executing trades frequently.

If you are only looking to hold your cryptocurrencies, a cold wallet will suit you well. You can always split your funds and store a part of it in a hot wallet and the rest in a cold wallet depending on how you want to use the funds.