What Is Cold Wallet? Meaning & Example
Definition
A cold wallet keeps crypto keys offline, often on a dedicated hardware device or paper. It is generally safer against online attacks but less convenient.
Related terms
A hot wallet is a crypto wallet connected to the internet, such as a mobile or browser app. It is convenient for frequent use but more exposed to hacking.
Seed PhraseA seed phrase is a list of words, often 12 or 24, that can restore a crypto wallet. It is the master backup of your keys and should be stored offline and kept secret.
Crypto WalletA crypto wallet is software or hardware that stores the keys needed to access and move your crypto. The wallet does not hold coins itself; it holds the keys that control them.
What is Cold Wallet?
A cold wallet keeps crypto keys offline, often on a dedicated hardware device or paper. It is generally safer against online attacks but less convenient.
Can you give an example of Cold Wallet?
A hardware wallet stored in a drawer and connected only when signing transactions is a cold wallet.