What Is Cold Storage?

Cold storage is a method of storing digital assets such as cryptocurrencies, tokens, and other digital assets in an offline environment. This type of storage provides the highest level of security for these types of assets since they are not connected to the internet or any other network. Cold storage can be done using either hardware wallets or paper wallets.

Hardware wallets are physical devices that store private keys securely on them and allow users to access their funds without having to connect it to the internet. Paper wallets are pieces of paper with printed QR codes containing public and private keys which can be used for transactions when scanned by compatible software applications. Both methods provide excellent protection against hackers who may try to steal your coins through online attacks like phishing scams or malware infections. Cold storage also helps protect against inflationary risks associated with holding large amounts of cryptocurrency over long periods of time due to its lack of connection with exchanges where prices fluctuate rapidly.

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