Hot Wallet vs Desktop Wallet: Which One Fits Your Needs?

[Nikando]

Choose the Wallet for your Bitcoin The type of the wallet should be selected according to your manner of working and storing the BTCs. Hot wallets are those which are online that makes it feasible for easy usage for transactions and managing reasonable amounts of money. However, because hot wallets are constantly online, then there should be some safety measures taken by the user like phishing and so on.

Desktop wallets are those where the program runs on your own computer. They might be suitable for those who want to keep their BTC in the desktop wallet and not fully depend on the web wallet. Desktop wallet security also heavily depends on the computer which it works with and on backup of this wallet.

They both have the cons too. Now you'll have to decide which one you want to go with depending on the frequency you transact and amount of bitcoin you possess.

What type of wallet would you opt for and why?

[Charles-Tim]

However, because hot wallets are constantly online, then there should be some safety measures taken by the user like phishing and so on.

Cold wallets are the safest, but it may not be resistant to phishing if the wallet owner is ignorant about it. Just like someone that got a phishing email that requested to input his seed phrase on a website. There are ways that cold wallet users can make mistake and lose their coins. But against malware and hacks, cold wallet are the safest.

[Frankolala]

It depends on the kind of desktop wallet that you are talking about because we still have hot wallet on desktop which is still vulnerable to phishing links and clip board malware. If you are talking about electrum cold storage, that's the one that's difficult to get compromised because it's airgapped and the seed phrase is always offline. You should consider adding a passphrase to your seed phrase for an additional layer of security and keep your seed phrase in a separate place from your passphrase.

Online wallet is good for daily/weekly spending while, you long term savings should be in a hardware wallet.

[hosemary]

I think the comparison you made doesn't make much sense.

A hot wallet is a wallet where your keys are kept or used on a device connected to the internet.  
A desktop wallet is a wallet that runs on a desktop computer.

Therefore, a dekstop wallet can also be hot wallet if the computer is connected to the internet. It would make more sense to compare hot wallets with cold wallets or desktop wallets with mobile wallets.

[BlackBoss_]

Hot wallets are those which are online that makes it feasible for easy usage for transactions and managing reasonable amounts of money. However, because hot wallets are constantly online, then there should be some safety measures taken by the user like phishing and so on.

Your hot wallets don't constantly online but even only connecting to Internet when you open it, type your wallet password to unlock the wallet, it's already very risky.

Desktop wallets are those where the program runs on your own computer. They might be suitable for those who want to keep their BTC in the desktop wallet and not fully depend on the web wallet. Desktop wallet security also heavily depends on the computer which it works with and on backup of this wallet.

Desktop wallets are hot wallets too if you don't have it on an air gapped computer. A reminder is an air gapped computer must have all Internet connectable to be removed, not only turn off your Internet connection, or switch your computer to Airplane mode.

What type of wallet would you opt for and why?

I choose SPV wallet like Electrum wallet because it does not need too much storage space. It is available on computers and on mobile (for Android) and you can use Electrum with Tor.

There are reminders on how to use Electrum wallet safely.
[GUIDE] How to Safely Download and Verify Electrum.
The paranoid user's security guide for using Electrum safely.

[SFR10]

hot wallets are constantly online,[...]  and not fully depend on the web wallet.

Based on the above parts, it appears you're referring to a specific type of hot wallet ^{[web wallets]} and since not all hot wallets are web wallets, you should change the subject field to "web wallet vs desktop wallet".

What type of wallet would you opt for and why?

For large amounts, I prefer open-source hardware wallets with secure elements and reproducible builds, while for insignificant amounts, I just go with the safest non-multicurrency, or rather Bitcoin-only mobile wallet.

[Hatchy]

What type of wallet would you opt for and why?

I believe you almost failed to differentiate between a hot wallet and a desktop wallet, so I agree with Hosemary. Your comparison should be between either cold wallets and hot wallets, or mobile wallets and desktop wallets.As long as a wallet is on a device, whether desktop or mobile, that is connected to the internet, it is simply considered a hot wallet. Cold wallets should have no direct access to the internet. Transactions are signed separately and completely offline before they are broadcast to the network. And like Charles-Tim stated, a cold wallet is generally the better option for storing your coins because of its higher level of security. But this does not mean it is 100% safe from scams or attacks. There can still be device vulnerabilities that could lead to your wallet being compromised, and that may be completely out of your control.

There is also user error, which Charles-Tim mentioned. It is your responsibility to make sure your private keys are kept safe and completely out of reach of third parties. One common mistake people make is storing their keys on a device that is connected to the internet. If that device becomes infected with malware, hackers could potentially gain access to your keys and steal your coins.

There are many ways scammers and hackers can make you vulnerable, so it is better to follow good security practices from the beginning. Using a cold wallet to store your long term holdings is one of those practices. You can still use hot wallets, but I would avoid keeping large amounts of my investment in them. They are better suited for smaller amounts and everyday transactions when necessary.

[hugeblack]

This is the first time I’ve seen an account comparing hot wallets and desktop wallets; the comparison is pointless, given that some desktop wallets can also be hot wallets. Cold storage is the best option and is easy to manage, whereas hot wallets are suitable for small/daily amounts.

[EL MOHA]

This is the first time I’ve seen an account comparing hot wallets and desktop wallets; the comparison is pointless, given that some desktop wallets can also be hot wallets. Cold storage is the best option and is easy to manage, whereas hot wallets are suitable for small/daily amounts.

It’s one of those situations where you have newbies rushing to create threads to teach instead of them actually paying much attention to learning. I am very sure OP didn’t know the distinctive difference or similarities between the two and that’s why there is this comparison. I  will simply say OP should look at this thread below to learn certain things about bitcoin wallets; [General] Bitcoin Wallets - Which, what, why?

[Nikando]

This is the first time I’ve seen an account comparing hot wallets and desktop wallets; the comparison is pointless, given that some desktop wallets can also be hot wallets. Cold storage is the best option and is easy to manage, whereas hot wallets are suitable for small/daily amounts.

The comparison could be not relevant because "desktop" is about the wallet's environment and "hot" about the wallet's connection to the internet the desktop wallet definitely could be a hot wallet I also think that it should depend on what you'll use the funds for. Hot wallet is useful for small and frequent transactions, cold storage is better for storing the funds for the long term.

[Mia Chloe]

~snip

I think you're getting your term usage wrong actually. Desktop wallet isn't an actual opposite of a hot wallet instead it's a cold wallet.  Desktop wallet literally tells you the type of operating system the wallet actually runs on which is your usual desktop computer or laptops, basically stuff that run on operating systems like Mac OS, Linux ,Windows etc

So basically some wallets like Electrum actually have versions for desktop and mobile.. like your phones. As for best fits, hot wallet is best if you frequently transact but if you wanna Hodl long term then cold wallet is the better option.

[NotATether]

So basically some wallets like Electrum actually have versions for desktop and mobile.. like your phones. As for best fits, hot wallet is best if you frequently transact but if you wanna Hodl long term then cold wallet is the better option.

Sometimes you actually need to pay someone in Bitcoin somewhere, so in such cases, having a wallet on your phone makes sense.

Just top it up with a reasonable amount and set some kind of authentication, not your whole stash obviously.

[Nikando]

~snip

I think you're getting your term usage wrong actually. Desktop wallet isn't an actual opposite of a hot wallet instead it's a cold wallet.  Desktop wallet literally tells you the type of operating system the wallet actually runs on which is your usual desktop computer or laptops, basically stuff that run on operating systems like Mac OS, Linux ,Windows etc

So basically some wallets like Electrum actually have versions for desktop and mobile.. like your phones. As for best fits, hot wallet is best if you frequently transact but if you wanna Hodl long term then cold wallet is the better option.

That is an important clarification, and I agree on distinguishing between the desktop and hot wallets. Desktop wallet refers only to the computer system on which the software is running. Both hot and cold wallets refer to the ability of the wallet to be online or not.

Here Electrum is one of the best examples, since it can be installed on both desktop and mobile.

The choice of the wallet depends on individuals preferences.