Cryptocurrency is stored “offline”. You do this if you want to safely store coins for a longer period of time.
A hardware wallet is an example of cold storage. A cold wallet is a cryptocurrency wallet that is not connected to the internet. With cold storage, the generation and storage of the private keys are done in an offline environment.
Online environments are vulnerable to hackers, who therefore actively attack online crypto-wallets.
In 2013, James Howells, who lives in Wales, threw out a hard drive with 7,500 bitcoins on it. When he realized how much the value of Bitcoin had shot up in recent years, he went looking for the drive.
Most exchanges and brokers have a large part of their cryptocurrency in cold wallets. This makes it impossible for hackers to steal the cryptocurrency from the wallets because you need to be physically at this location.
temuland notice: If you want to be completely sure that you’ll get an untampered cold storage device, we recommend buying directly from the manufacturer.