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IntermediateCrypto1 min

A cold wallet is a way of keeping cryptocurrency keys offline, without a permanent internet connection: a hardware device or a seed phrase written on paper or metal.

In plain words

Because the key never touches the internet, a remote hack is almost impossible. The risks are different: physical loss or theft of the device and the seed phrase, and mistakes during recovery. Cold wallets suit long-term storage; for everyday payments a “hot” mobile wallet is more convenient. Buy a hardware wallet only from the maker or an official reseller and check that the packaging has not been opened.

Example. You buy a hardware wallet, write the seed phrase on paper and keep it in a safe, while the money for everyday spending stays in a mobile wallet.

Related terms

← The whole glossary

Word of the dayInflationBasic

Inflation is a sustained rise in the general level of prices, so that money buys fewer goods and services than before.

Example. Prices rose 10% over the year and your deposit earned 8%: formally you earned something, but you can buy a little less with that money than last year (108 against 110, illustrative numbers).

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