How it works
The goal is to reduce remote attack exposure by signing or storing credentials offline. Cold storage can use dedicated hardware or carefully designed offline systems.
What to check
Evaluate the backup process, signing workflow and physical security. A cold wallet is only as strong as the procedures used to recover and operate it.
- Protect backups physically
- Understand the signing process
- Do not approve unknown transactions
Limits and risks
Offline storage reduces some cyber risks but increases the importance of physical loss, backup failure and user error. It does not protect against signing a malicious transaction.
Primary sources
Bitcoin Developer Reference↗Ethereum developer documentation↗FATF: Virtual Assets↗General information only. Investment products can lose value, and terms, fees and regulation can change.