Crypto cold storage is a place to store a digital asset offline. This is done for security reasons, especially for storing large amounts of digital assets. The application of cold storage is usually done through paper wallets and hardware wallets.

Cold Storage solves the problem by signing transactions with a private key in an offline environment. This method should not have the ability to communicate with other electronic devices unless it is physically plugged into them when you access your keys.

Any transactions initiated online are temporarily transferred to an offline wallet stored on a device such as a USB, CD, hard drive, paper, or offline computer, which is then digitally signed before being transmitted to the online network. Since the private key does not come into contact with the server connected online during the signing process, even, if an online hacker discovers the transaction, they will not be able to access the private key used for it.