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 an internet-connected exchange or app. 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 if you want to trade quickly. For example, an investor might keep 90% of their Bitcoin in cold storage on a hardware wallet and 10% in a hot wallet (online) for easy access. The idea is simple: the less your crypto touches the internet, the harder it is for thieves to steal it.