Cold Wallet
An offline cryptocurrency storage mechanism that holds private keys completely disconnected from the internet to guard against hacking.
In-Depth Explanation
Cold storage includes dedicated hardware wallets (Ledger, Trezor, BitBox) and air-gapped paper/metal backups, providing the gold standard of self-custody security.
Practical Market Example
Real-World Application
An investor transfers long-term Bitcoin savings from an exchange onto a hardware cold wallet stored in a home safe.