Definition of cold storage
What is the meaning of "cold storage" in the context of Bitcoin and cryptocurrencies?
In the context of Bitcoin, cold storage means a medium of an offline cryptocurrency wallet.
Cold storage wallets are physical data containers to store cryptocurrencies. They stay offline, without connected to communication networks.
This way the protected cryptocurrency can not be obtained remotely by hackers using attack vectors that come with most digital communication interfaces.
Examples of cold storage wallets:
- Printed or handwritten piece of paper
- Engraved or handcrafted metal object
- Dedicated offline microcomputer
- Physical coins with security seal
- 3D printed plastic object
- Handcrafted piece of stone
- USB drive
- An encrypted NFC Wallet Card
Best solution depends on every use case, most important key factors people must keep in mind:
- Physical access control
- Potential vulnerabilities
- Security features
Synonyms of cold storage:
offline wallet, cold wallet, offline storage