Cold Storage

Cold storage, also known as a cold wallet, refers to any cryptocurrency storage device or method that is completely offline. It is used as a means of securing cryptocurrencies from potential online threats such as hacking and theft. Cold storage can involve keeping cryptocurrencies on a physical device like a hardware wallet, a paper wallet, or even a metal token. Since these devices are not connected to the internet, they cannot be remotely accessed or controlled, which adds an extra layer of security. For large amounts of cryptocurrencies, using cold storage is often considered a best practice. For accounting purposes, it's important to track the amount and value of cryptocurrencies stored in cold storage for accurate financial reporting.