Wallet & Cold Storage

A wallet is a digital tool that stores and manages your cryptocurrency (like Bitcoin or Ethereum), similar to how a physical wallet holds cash. Cold storage means keeping your crypto offline—on a hardware device, paper, or other disconnected medium—rather than on internet-connected exchanges or apps. You'll hear about this when investing in crypto because it's the safest way to protect your coins from hackers and theft. Online wallets are convenient for trading but riskier; cold storage is slower to access but much more secure. For example, Sarah might keep 90% of her Bitcoin in cold storage on a hardware device and only move small amounts to her phone wallet when she wants to trade.