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 or paper—rather than on internet-connected exchanges or apps. You'll hear about this when investing in crypto because it's the security trade-off: cold storage is safer from hackers, but less convenient for quick trading. For example, Sarah might keep 90% of her Bitcoin in cold storage on a hardware device for safety, while keeping 10% in a hot wallet (online) for easier buying and selling. Most serious crypto investors use both.