A cold wallet, also known as a hardware wallet, is a physical device (usually resembling a USB stick) that is used to store your private keys completely offline – imagine it as your own private bank vault. No transactions can be made without connecting the hardware wallet to the computer initiating the transaction and unlocking it. As they are not connected to the internet, cold wallets are less at risk of being compromised, assuming that the owner stores the seed phrase for the hardware wallet safely and offline.
“I store all of my blue-chip NFTs safely on my Ledger Nano X cold wallet.”
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