Hi davidfromascot,
Thanks for providing some additional information. So, do I understand that your Apple ID is your hotmail email address? Or, do you have a separate email that ends in @me.com or @mac.com?
If you are in the Mail application sending and receiving emails, you would use the same password that you use to access your web based mail for your hotmail account.
In all other instances, buying music from the iTunes Store, etc. you would use the password for your Apple ID account (which is your hotmail email address). You can verify the password you use for your Apple ID account at appleid.apple.com.
Frequently asked questions about Apple ID - Apple Support
https://support.apple.com/en-us/HT204161
Best,