Cold Wallet

A Cold Wallet is a method of storing cryptocurrency that is offline and disconnected from the internet. This type of wallet is considered to be more secure compared to hot wallets, which are online wallets connected to the internet.

Cold wallets are typically hardware devices or physical documents that store the private keys needed to access and manage cryptocurrency. These wallets are not susceptible to hacking or online attacks since they are not connected to the internet.

Cold wallets are recommended for storing large amounts of cryptocurrency that are not frequently accessed. They are often used as a long-term storage solution to protect assets from potential security breaches.

While cold wallets provide a higher level of security, they also require more effort to access funds compared to hot wallets. Users must physically retrieve the hardware device or document containing the private keys in order to make transactions, which can be inconvenient for frequent trading or spending of cryptocurrency.