Cold Storage

Cold storage refers to keeping digital assets—like bitcoin—completely offline, disconnected from the internet or any networked device. The most common example is a cold wallet, which stores the wallet’s private keys on an isolated device, making it much harder for hackers or malware to steal funds.

While the private keys remain offline, the cold wallet’s public address can be used with an internet-connected device to receive payments, so you can still accept funds securely. Cold storage offers a strong defense against online threats, but it’s less convenient for frequent transactions. For this reason, cold storage is best suited for safely holding significant amounts of bitcoin or other cryptocurrencies that you don’t plan to spend often.