Trading glossaryReviewed 16 July 2026
Definition
A cold wallet keeps cryptoasset signing keys in an environment not routinely connected to online systems, reducing exposure to remote compromise.
In market context
Cold storage can use dedicated hardware, offline computers, or carefully designed paper and backup procedures. Reduced connectivity limits some attack paths but shifts responsibility toward physical security, recovery backups, device integrity, and correct transaction verification. Cold does not mean risk free: loss, damage, malicious firmware, disclosure of a recovery phrase, or an irreversible address mistake can still remove access to assets.
Source
Use the primary source for fuller regulatory or market context.