Why Is a Hardware Wallet Considered a Form of Cold Storage?
A hardware wallet is considered cold storage because the private keys are generated and stored securely within a dedicated, offline, and often tamper-proof chip. The key never leaves the device, even when signing a transaction.
The device must be physically connected and manually approved to interact with the blockchain, ensuring the key remains isolated from the internet and potential online threats.
Glossar
Cold Storage
Storage ⎊ Cold Storage denotes the practice of securing private keys for cryptocurrency assets entirely offline, disconnected from any internet-enabled device, to provide the highest level of defense against remote hacking attempts.
Hardware Wallet
Security ⎊ Hardware Wallet is a physical electronic device designed to securely store a user's private keys offline, requiring physical confirmation for transaction authorization, thus providing the highest level of defense against remote digital theft.