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Glossary Term

Cold Wallet

A crypto wallet whose private keys never touch the internet — typically a hardware device used for long-term storage.

A cold wallet keeps private keys on a device that never connects to the internet — most commonly a purpose-built hardware wallet, historically also paper backups. Transactions are signed on the device itself, so the keys are never exposed to a potentially infected computer.

Cold storage is the standard for meaningful long-term holdings because it removes the biggest attack surface: remote hacking. The residual risks are physical — losing the device and its seed-phrase backup, or buying tampered hardware, which is why devices should only be purchased directly from the manufacturer. Its counterpart, a hot wallet, stays online for day-to-day convenience.

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