Cold Storage

Crypto & Blockchain

Cold storage refers to keeping cryptocurrency private keys completely offline, eliminating online attack vectors. Methods: hardware wallets (most common), paper wallets (print keys, store securely), air-gapped computers (never connected to internet), metal seed plates (engraved seed phrase resistant to fire/water). Combine with multi-signature setups (multiple keys required to spend) for maximum security. Trade-off: cold storage is inconvenient for frequent transactions — use a 'hot wallet' (online) for small amounts you spend regularly and cold storage for long-term holdings. Industry rule of thumb: only keep on exchange what you're actively trading; everything else in self-custodial cold storage.