Wallets, Security & Custody

What is cold storage for crypto?

Cold storage is a method of holding crypto private keys completely offline, disconnected from the internet, to protect them from remote hacking. It contrasts with hot wallets, which stay online for quick transactions. Common forms include hardware wallets and paper backups of recovery phrases kept in secure physical locations. For example, a custodian might keep the bulk of customer assets in offline cold storage and hold only a small operational amount in a hot wallet for daily withdrawals. The trade-off is stronger protection against online attacks at the cost of slower access.

Crypto investments are subject to market risk and volatility. Past performance is not indicative of future returns. This is general information, not investment advice — consider your own circumstances or consult a qualified adviser before investing.