Crypto Dictionary
Cold Storage
Definition
Storing cryptocurrency offline to protect it from hacking.
Deep Dive
Cold storage refers to the practice of storing cryptocurrency offline, specifically keeping the private keys that control the assets completely disconnected from the internet. The primary motivation for cold storage is to provide maximum security against online threats such as hacking attempts, malware, phishing scams, and exploits targeting online exchanges or software wallets. By air-gapping the private keys, it creates a robust barrier against cyber theft.
Examples & Use Cases
- 1Storing a substantial amount of Bitcoin on a Ledger Nano X hardware wallet, disconnected from a computer
- 2Printing a paper wallet with a private key and storing it in a safe deposit box
- 3Using an air-gapped computer to generate and sign transactions before broadcasting them from an online machine.
Related Terms
Hot WalletHardware WalletAir Gap