How Does ‘Cold Storage’ Mitigate Security Risks for Large Crypto Holders?

Cold storage refers to storing a cryptocurrency wallet's private keys offline, disconnected from the internet. This makes the keys virtually immune to online threats such as hacking, malware, and remote theft, which are the primary security risks for large crypto holdings.

While it makes transactions slower and more complex, the increased security is essential for institutional custody and physical settlement where large volumes are involved.