What does Cold Storage for Crypto mean?
Storing cryptocurrency securely is a major concern for cryptocurrency users. An important security step to protect cryptocurrency from theft is to store the seed phrase in cold storage. A seed phrase is randomly generated and consists of 12-24 words specific to each cryptocurrency user’s account. If written down, cold storage protects these words from malware and other forms of cyber attacks that might compromise digital wallets. Cold storage typically takes the form of a paper wallet or a hardware wallet, and cryptocurrency can easily be restored using the seed phrase if something were to happen like lost access or laptop failure. Furthermore, keeping your seed phrase in multiple locations can help prevent against theft as two or more parts must be assembled together before access is granted. Ultimately, cryptocurrency owners should understand how vital it is to store a copy of their seed phrases safely so they can keep their cryptocurrency safe and secure.