cold wallet

cold wallet

A cryptocurrency wallet that cannot be compromised because it is not connected to the Internet. Also called a "hardware wallet" and "offline wallet," the cold wallet stores the user's address and private key and works in conjunction with compatible software in the computer. Contrast with "hot wallet," which resides in the user's desktop or mobile device or in a cloud-based service, all of which are online to the Internet and can be hacked. See Bitcoin wallet.

Trezor Wallet - Only Hot for a Few Minutes
This cryptocurrency hardware wallet is only "hot" while it is plugged into the computer to make a transaction. When unplugged, it is "cold" and safe from eavesdropping. (Image courtesy of SatoshiLabs, www.trezor.io)
References in periodicals archive ?
Currently, the safest means for cryptocurrency transactions is a cold wallet that cannot work without a laptop.
The phone consists of two parts: the smartphone itself and a cold wallet that may have several security levels.
That contrasts with a cold wallet, where funds are stored securely offline.
The stolen Coincheck money is thought to have been kept in a "hot wallet" in the internet - as opposed to a cold wallet where funds are stored offline.
Operators should keep at least 70 percent of cryptocurrency deposits out of the entire investment budget from a customer in the cold wallet to prevent any hacking attempts.
However, Bangs said the crime insurance market is willing to deal with the risks of cold wallet or offline exposure, which is extremely secure, but has very little appetite for hot wallet or online exposure, since it is greatly exposed to hacking and the potential for cyberattacks.
Users' fiat deposits are kept in segregated client bank accounts, while their digital currencies are stored on a multisig cold wallet and the system is continuously monitored and audited by an external IT security firm.
The company added that it has already sourced technologies for both payment platforms and the Cold Wallet and expects to have a working model in the coming weeks.
Users' fiat deposits are kept in segregated client bank accounts, while their bitcoins are stored on a multisig cold wallet and the system is continuously monitored and audited by an external IT security firm.
The company also holds up to 98% of customer funds in cold wallets and offline in bank vaults to prevent theft or loss, a tactic intended to protect against many of the problems plaguing other Bitcoin exchanges.