What Is Cold Storage in Crypto?

Since cryptocurrencies are decentralized, much of the responsibility for storing them safely falls on the owner. If your crypto is lost or stolen, there's no one you can call to get it back. Many security-conscious crypto enthusiasts have turned to cold storage to keep their coins safe.

This type of storage isn't just used by individual investors. It's also a favorite of major cryptocurrency exchanges and some of the companies behind the best cryptocurrency stocks. To find out why, let's take a look at how cold storage works and what makes it so safe.

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An infographic comparing the security, convenience and cost of cold vs. hot cryptocurrency storage. — Image source: The Motley Fool

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About the Author

Lyle Daly is a contributing Motley Fool stock market analyst covering information technology and cryptocurrency. Lyle has been a contributor at the financial services company since 2018. His work has been featured on USA Today, Yahoo Finance, MSN, Fox Business, and Nasdaq. Before joining The Motley Fool, he wrote for financial brands including Intuit.

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@LyleDaly

Lyle Daly has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.