Cold Storage
Keeping crypto keys completely offline for long-term safekeeping, out of reach of malware and remote attackers.
Cold storage is the practice; a cold wallet is one way to do it. The principle is that a key which never touches an internet-connected device can't be stolen remotely. Hardware wallets are the common form; air-gapped laptops and paper backups also qualify.
Exchanges hold the bulk of customer funds this way, moving only a small float to hot wallets for daily withdrawals. For individuals, it's where you park coins you don't plan to touch for months. The cost is access: retrieving funds takes deliberate steps, by design.
Related terms
A wallet whose keys are generated and stored offline, cutting off the remote attacks that target connected devices.
Hardware WalletA dedicated physical device that holds your private keys and signs transactions without exposing them to your computer.
Hot WalletA crypto wallet kept connected to the internet for fast access, trading the convenience against higher exposure to theft.
Self-CustodyHolding your own private keys directly, so no exchange or company stands between you and your crypto.