Cold wallet: what it really protects you from

A cold wallet is a way of storing private keys offline. Most often it is a dedicated hardware device (hardware wallet) that signs transactions internally, so the key never reaches your computer or phone. The opposite is a “hot” wallet, permanently connected to the network: convenient, but more exposed to attacks.

A cold wallet reduces the risk of a remote break-in, but it does not eliminate other threats: theft or loss of the device, losing your recovery phrase (seed phrase), counterfeit devices and mistakes when approving transactions. For small, frequently used amounts it can be inconvenient. Buy the device only from the manufacturer and check that the packaging has not been tampered with.