Cold Wallet
A cryptocurrency wallet that stores private keys offline, providing enhanced security against online threats.
In-Depth Explanation
Cold wallets include hardware devices (Ledger, Trezor) and paper wallets. Keys never touch an internet-connected device, protecting against remote hacks. The tradeoff is inconvenience—each transaction requires physical interaction. Cold storage is essential for significant holdings. 'Cold storage' can also refer to any offline key storage method.
Related Terms
Wallet
Software or hardware that stores private keys and enables users to send, receive, and manage cryptocurrency.
Hot Wallet
A cryptocurrency wallet connected to the internet, offering convenience but increased security risk.
Hardware Wallet
A physical device that stores cryptocurrency private keys offline and signs transactions securely.
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L2Scaling solutions built on top of a base blockchain (L1) that process transactions off-chain while inheriting L1 security.
Layer 1
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