What is a cold wallet?

What Is a Cold Wallet?

A cold wallet keeps your private keys offline. Hardware wallets are a type of cold wallet: the key never leaves the device unless you sign a transaction. Paper wallets (keys written on paper) are another form. Because the key is not on an internet-connected device, remote hackers cannot easily steal it. Cold wallets are best for larger or long-term holdings. You must keep the device or paper safe and back up the seed phrase securely.