What are “cold wallets”?

A cold wallet is a completely offline wallet. It does not exist on a smartphone, tablet, or the internet. They are usually used for the storage of much larger amounts of cryptocurrency, unlike hot wallets that are used for smaller amounts of cryptocurrency and are easier to access.

There are two main types of cold wallets:
– Paper wallets – a piece of paper which has your wallet private key on it, or a QR code
– Hardware wallets – a physical device which contains the private keys to your wallet addresses

Pros of cold wallets:
– Very secure and hard to hack
– You hold your private keys in your hand

Why avoid a cold wallet?
– You will need the wallet on you to access your funds
– If you damage the wallet you could lose the contents

If you do use a cold wallet, we recommend using either Trezor or a Ledger.