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What Is Bitcoin “Cold Storage”?
Bitcoin cold storage (also known as a “cold wallet”) is a method of keeping your Bitcoin private keys completely offline to protect them from online threats like hacking, ransomware and […]
Bitcoin cold storage (also known as a “cold wallet”) is a method of keeping your Bitcoin private keys completely offline to protect them from online threats like hacking, ransomware and malware. Storing these keys on devices or mediums not connected to the internet — whether a hardware wallet, an encrypted USB device, or even a piece of paper (kept very safely) — helps ensure maximum security for long-term holding of Bitcoin. Cold storage reduces the risk of unauthorized access since the private keys are not available on an internet-connected device, making it one of the safest ways to safeguard cryptocurrency assets. However, it requires careful management of the keys, as losing access means losing the Bitcoin permanently.
Sources
“Cold Storage: What It Is, How It Works, Theft Protection.” Investopedia. https://www.investopedia.com/terms/c/cold-storage.asp
