[dns_snek]

This is my personal view on the topic. I don't claim it strictly matches any "official" definition.

A "hot" wallet is a type of wallet that's typically stored in internal storage of a network-connected device, such as your personal computer or your smartphone. This is riskier way of storing funds because they can be exfiltrated by malware. You would typically use a hot wallet for day to day transactions.

A "cold" wallet is a type of wallet where private keys to control the funds are never in contact with a network-connected device. They're typically stored in the form of recovery phrases written on paper or metal (in a secure location), or some kind of a smart card that securely stores private keys and exposes an interface to sign individual transactions (e.g. Ledger devices). Funds stored in a cold wallet are much harder to access, but are extremely (or completely) resistant to theft, short of physical access.

In crypto a "hot" wallet should be treated as cash, while a "cold" wallet is more like a savings account.