What is… a cold storage?

Everyone who is interested in Bitcoin have to struggle with a lot of terms and that could be confusing. In our new series we would like to explain some terms and give an answer on questions which are interesting for Bitcoin newbies. In part 1 of the series we explain:

What is a cold storage?

If someone talk about a cold storage in the context of Bitcoin, he talk about an offline wallet in which he keeps a reserve of Bitcoins. In times of cyber attacs on online services it’s a good idea to keep some Bitcoin in a reserve. So if someone attack the service where your wallet ist hosted you have a reserve in a cold storage without any connections to the web. So the reserve is mainly safe. Some Bitcoiner put only a small amount on online wallets to¬†cover anticipated withdrawals.

If you want to use a cold storage, there are a few methods to do this. You can use wallets on a portable hard disc or an usb stic and put it on a safe place. Or you can use a paper wallet, so there is absolutely no connection to the internet. As well hardwell wallets like Pi-Wallet could be use for a cold storage.

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