Cold wallets are those that aren't linked to the web and are, therefore, far less vulnerable to attack. The wallets can likewise be referred to as disconnected wallets or equipment wallets. Wallets store a client's location and private key on a device that isn't connected to the internet and are commonly accompanied by a program that shows the client their portfolio without putting their private key at risk. Perhaps the most secure way to store digital money is in a paper wallet.

A cold wallet is a type of cryptocurrency storage solution that keeps private keys completely offline, providing maximum security against hacking and online threats. Unlike hot wallets (connected to the internet), cold wallets are physical devices (like Ledger or Trezor) or paper wallets that store keys in an isolated environment. They are ideal for long-term investors holding large amounts of crypto, as they prevent remote attacks, malware, and phishing scams. Transactions must be manually signed offline before being broadcast online, ensuring safety. While cold wallets offer superior protection, they are less convenient for frequent trading. Users must safeguard their recovery phrases, as losing access means permanent loss of funds. For optimal security, many combine cold wallets with multi-signature setups, ensuring only authorised users can access stored assets.