Cold wallet
A cold wallet is a virtual currency storage device or tool that is disconnected from the internet, mainly used for the long-term safe storage of cryptocurrencies, in contrast to 'hot wallets' that are connected to the network.
Core features:
Offline storage: private keys (the key to access and transfer assets) stored in an offline environment, avoiding the risk of being attacked by online hackers or stolen by malware.
High security: being offline effectively resists most cybersecurity threats, making it the preferred option for storing large amounts of cryptocurrency.
Usage process: during a transfer, it usually requires first signing the transaction offline on the cold wallet, then importing the signed transaction information into a connected device to complete the sending, with the private key never touching the network.
Common types:
Hardware cold wallets: dedicated hardware devices like Ledger, Trezor, etc., resembling USB drives, with private keys stored in the device's internal chip, offering extremely high security.
Paper wallets: private keys printed on paper in the form of QR codes or strings, completely offline, low cost but prone to damage and loss.
Offline software wallets: wallet software installed on a computer or mobile device that is not connected to the internet, generating and storing private keys while keeping the device offline.
Applicable scenarios:
Suitable for users who hold cryptocurrencies for the long term and prioritize asset security, especially for storing large assets. However, it is relatively cumbersome to use and not suitable for frequent trading.