A cryptocurrency wallet not connected to the Internet
I invested in cold storage because I realllly don't want to lose my Dogecoin. To the moon!
|Brainwallet||A memorized Bitcoin seed phrase|
|HODL||Hold on for dear life|
|Nocoiner||A person who owns no cryptocurrency|
|Bagholder||A person who fails to sell a stock before it crashes|
|Diamond hands||To hold a stock through losses|
|Paper hands||To sell a stock at the first sign of trouble|
|Hot wallet||A cryptocurrency wallet connected to the Internet|
|Airdrop||A cryptocurrency marketing event|
|Dust||Tiny amounts of cryptocurrency|
When a cryptocurrency owner refers to "cold storage," they're talking about an offline device they use to store their cryptocurrency wallet and private key. A crypto owner's cold storage may be a USB drive, external hard drive, CD, or in some rare cases, even a piece of paper with a printed QR code.
What is a cryptocurrency wallet?
A wallet is a program cryptocurrency owners use to access and manage their coins. Each wallet is linked to a private key, which acts as the wallet's "address" for cryptocurrency transactions. When cryptocurrency owners conduct a transaction, coins are either routed to or taken from their wallets.
What's the benefit of crypto cold storage?
Because Bitcoin and other cryptocurrencies are not insured by a centralized institution, if a person's cryptocurrency is stolen, it is likely gone for good. A person's private key allows access to their cryptocurrency, so storing the key in an online wallet (or hot wallet) makes it vulnerable to theft. This is why many cryptocurrency users prefer to store their wallets and private keys on a cold storage device, which never places the user's private key upon a network.