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Glossary entry

Cold Storage

Wallets & Security

Keeping crypto private keys completely offline (hardware or paper wallets) to protect larger holdings from remote hacking.

Definition

Cold storage means keeping the private keys to a crypto wallet completely offline, disconnected from the internet, so they can't be reached by remote hackers. Common methods include hardware wallets (small dedicated devices), paper wallets, or even air-gapped computers that never connect to a network. It is the recommended way to hold larger amounts of crypto for the long term, since it removes the biggest attack surface that hot wallets face. The trade-off is convenience: moving funds out of cold storage takes a few extra deliberate steps, which is exactly the point.

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