Cold wallet

A cold wallet is a type of cryptocurrency wallet that is not constantly connected to the internet, making it significantly more secure against hacking and theft. It is mainly used for long-term storage of cryptocurrencies and reducing cybersecurity risks. A cold wallet can take the form of a hardware device (e.g., Ledger, Trezor) or a paper wallet (private keys written on a physical medium, such as a piece of paper or a metal plate).

The main advantage of cold wallets is their resistance to online attacks since private keys are never directly exposed to the internet. However, they are less convenient to use compared to hot wallets, and losing access (e.g., misplacing the device or private keys) can result in permanent loss of funds. For this reason, users often create backups and use secure storage methods for their keys.