Hot Wallet vs. Cold Wallet
The difference between these two types of crypto wallets is straightforward.

A hot cryptocurrency wallet only works with the connection to the internet, while a cold Bitcoin wallet works offline. However, there is a little more to the difference between the two types of virtual wallets.

As a hot crypto wallet operates within the framework of the internet, such Bitcoin wallet is vulnerable to different types of attacks. When you work with a hot BTC wallet, there is always a risk of your data being stolen. At the same time, such wallets are the primary choice among users. Exodus, Trustee and Electrum are such wallets.

A cold Bitcoin wallet is used for “cold” storage of best cryptocurrency and therefore have a higher level of protection.

The type of virtual wallet you choose entirely depends on your needs. If you need to make a lot of small transactions, a hot wallet is a better choice for you. On the contrary, if you need to store vast amounts of a cryptocurrency over a long period, it makes sense to choose a cold wallet with a higher level of security protocols.

Private Key
A private key is used to get access to your Bitcoin account and to have the ability to send and receive bitcoins. This key protect cryptocurrency and if you lose it or it gets in the hands of a third-party, you will lose the cryptocurrency stored on your Bitcoin account.

Cryptocurrency holders should store private keys at a safe place where only they can get access to them. Some wallets that store private keys offline, while others store them online. It is up to you to decide how you want to store your private key and what virtual wallet you need for that.