hip
Modern, fashionable, and trendy, especially in relation to trends in culture, music, or lifestyle.
Diese Bar in einem alten Fabrikgebäude ist gerade total hip.
This bar in an old factory building is totally hip right now.

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Modern, fashionable, and trendy, especially in relation to trends in culture, music, or lifestyle.
Diese Bar in einem alten Fabrikgebäude ist gerade total hip.
This bar in an old factory building is totally hip right now.

'Hip' is a loanword from English and is used in colloquial German to express that something is modern and on trend. It does not belong to formal written language.
Er trägt immer die neusten Sneaker, er will wohl hip sein.
He always wears the newest sneakers; he probably wants to be hip.
When 'hip' comes before a noun, it must be declined like any other German adjective. Many learners forget this because it is a foreign word.
Wir haben gestern in einem hippen Café in der Innenstadt gesessen.
Yesterday we sat in a hip café in the city center.
The adjective 'hip' is very often used predicatively, meaning it comes after verbs like 'sein' (to be), 'werden' (to become), or 'finden' (to find/consider).
Ich finde diesen neuen Musikstil gar nicht so hip.
I don't find this new music style all that hip.
cool
'cool' and 'hip' can both say that something seems modern or positive. But 'cool' is broader: a film, a person, an idea, or an experience can be cool because it is good or impressive. 'hip' is more specific: something is currently modern, popular, or part of a trend. That is why an old car can be cool even if it is not hip. The words can be especially easy to confuse when talking about fashion, music, or places. If you want to give general praise, use 'cool'. If you want to say that something is on trend, 'hip' fits better.

Morgen schauen wir uns den hippen Laden in der Innenstadt an.
Tomorrow we'll check out the hip shop downtown.
Ich finde es cool, dass du trotz der Prüfung so ruhig bleibst.
I think it's cool that you stay so calm despite the exam.