What is Cold Storage?
Cold storage is the offline storing of bitcoin. A cold wallet is any crypto wallet that is not linked to the internet and is considered cold storage. A hardware wallet, which is often a small device that connects to a computer, is the most prevalent type of cold wallet.
Cold storage, because it is done offline, provides superior protection for Bitcoin (CRYPTO:BTC) and other cryptocurrencies. Hackers will be unable to acquire access to your cryptocurrency unless it is connected to the internet.
Because cryptocurrencies are decentralized, the owner bears a large portion of the responsibility for storing them safely. There is no one you can contact if your cryptocurrency is lost or stolen. Many crypto enthusiasts who are concerned about security have turned to cold storage to keep their currencies safe.
Individual investors aren’t the only ones who employ this form of storage. It’s also a favorite of major cryptocurrency exchanges and some of the greatest cryptocurrency stocks. To understand why, let’s look at how cold storage works and what makes it so secure.
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