What is Cold storage in crypto?

In the cryptocurrency world, "Cold Storage" is a secure storage method where cryptocurrencies are stored in environments that are not connected to the internet.
This method aims to protect cryptocurrencies from potential attacks and online threats by keeping them in offline environments.

Cold storage is usually carried out in special wallets called “cold wallets” or “cold wallet addresses”.
These wallets can be stored in environments that are not connected to the internet and are physically inaccessible. For example, private keys of cryptocurrencies and other necessary information can be stored in a paper wallet or hardware wallet.

Cold storage is especially important for the security of large amounts of cryptocurrencies because it offers less attack surface compared to online wallets.

However, it does not have the convenience of instant transactions like an online wallet. When you want to use or transfer cryptocurrencies, you may need to remove them from cold storage and transfer them to an online wallet. In this way, cold storage ensures that cryptocurrencies are stored securely and protected from potential attacks.

**Creating a Cold Wallet**

Creating a cold wallet can be done in a few steps. The first thing you need to do is create an offline Bitcoin address. This address has a key pair. However, you should be careful not to be exposed to the internet during this time. Otherwise, your security level will decrease. The password you choose when creating this address consists of 12 or 24 words. This password is always stored offline on a chip. As with any private password, you should not share this password with anyone or write it on any digital media.
**Cold Wallet Types**

Cold wallets generally come in three main types:
1. **Paper Wallets**: These wallets are a piece of paper that contains the private and public keys of cryptocurrencies.
2. **Hardware Wallets**: These wallets store private keys on an offline hardware device. For example, hardware wallets like Ledger Nano S fall into this category.
3. **Physical Bitcoin Wallets**: These wallets are wallets where Bitcoin is stored in a physical form.

**Advantages and Disadvantages of Cold Storage**

The biggest advantage of cold storage is that it protects your cryptocurrencies against online attacks. However, it does not have the convenience of instant transactions like online wallets. When you want to use or transfer cryptocurrencies, you may need to remove them from cold storage and transfer them to an online wallet.

**Security**
I would like to remind you that you should not lose the cold wallet. Because there is no backup for it. Therefore, in case of loss, you will need to buy a wallet again. However, if you forget or lose your password, you may lose your coins.

I hope this information has increased your understanding of cold storage.