Cold storage
Cold storage is keeping Bitcoin private keys offline on devices never connected to the internet, for maximum theft protection.
Cold storage is more than a hardware wallet — it's a philosophy of full air-gap. For large sums (€10k+): hardware wallet never connected to an untrusted network, seed engraved on metal, multiple backup locations. For institutional custody: multi-signature cold storage across multiple devices and locations.
Example
A Bitcoin treasury company keeps 95% of holdings in 3-of-5 multisig cold storage: three Coldcards with three directors in three locations, two extra keys in bank vaults. Hot wallet (5%) for operations.
Frequently asked questions
Difference from hardware wallet?
Hardware wallet can be used 'warm' (daily transactions). Cold storage = hardware wallet + discipline to rarely use it, ideally in an offline setup.
Related terms
Further reading
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