I don't know if there is any difference as I don't have a hotmail account but I added all my email addresses (yahoo etc) to my settings including the passwords and I never have to sign in or enter a password, I just open the mail app and all my email addresses are there.
thank you darkangelwitch for your reply - a friend (elderly) has just bought an ipad as her laptop died and only has a hotmail account. think we will have to reboot hers cos things don't seem to be working too well.