Cold storage or cold wallet refers to storing one’s public and private keys linked to cryptocurrency assets in a safe offline environment.
In the past few years, the popularity of cryptocurrencies has risen dramatically attracting hackers and scammers. That is why using cold storage is essential, especially for substantial long-term cryptocurrency investments. The absence of any connection to the internet ensures that the security risks are super low and the keys are solely in the hands of their owner.
The most common cold storage methods are paper wallets and hardware wallets. However, even a desktop wallet installed on a computer with no connection to the internet can be considered as a form of cold storage.