Cold Storage

Also refered to as cold wallets, cold storage is generating and storing a crypto coin’s private keys in an offline environment. If you are not actively trading your coins, this is where you want to keep those coins as it is the safest option. An exchange holds your private keys on your behalf, which places all of your crypto assets at risk of vanishing in an instant. Common ways of holding cryptocurrency on cold storage include:

- On a USB drive or other data storage medium in a safe place (e.g. safe deposit box, safe)
- On a paper wallet
- An offline Bitcoin Hardware wallet (Trezor, Ledger)
- Desktop wallet (on a computer)