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- Its Summer but let's talk about something COLD
Its Summer but let's talk about something COLD
This is the first piece of tech I wish I would have know about when I started trading and investing in crypto
Crypto Mommi
June 05, 2025
Why Cold Storage Is Essential on Your Crypto Journey
If you’re navigating the world of cryptocurrency, you’ve probably heard the phrase, “Not your keys, not your coins.” But what does that really mean for your crypto journey—and why does cold storage matter so much? Let’s break it down in plain language.
Cold storage is a way to keep your cryptocurrency private keys completely offline, away from the internet and digital threats. Think of it as putting your valuables in a safe deposit box, rather than leaving them on the kitchen table. Hardware wallets (like Ledger or Trezor), paper wallets, and air-gapped devices are all forms of cold storage.
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DO NOT BUY COLD STORAGE FROM AMAZON OR A RESELLER WEBSITE OR A RETURNED OPEN BOX
THESE COLD STORAGES MIGHT GET HACKED. BUT IT IN PERSON AT COMPUTER HARDWARE STORE, ORDER DIRECT FROM HARDWARE COLD STORAGE COMPANIES
Why Not Just Use a Hot Wallet?
Hot wallets—those apps and browser extensions you use for quick trades or DeFi—are connected to the internet. That makes them convenient, but also exposes them to hackers, malware, and phishing attacks. If someone gets your private key, your funds are gone, with no recourse—unlike a bank account, there’s no one to call for a refund.
The Security Advantage of Cold Storage
Here’s why cold storage is so important:
Maximum Security: By keeping your private keys offline, you eliminate the risk of remote hacking. No internet connection means hackers can’t reach your keys.
Peace of Mind: You control your assets directly. There’s no risk from exchange hacks, regulatory freezes, or third-party failures—think of the FTX or BlockFi collapses, where many lost access to their funds.
Ideal for Long-Term Holding: If you’re planning to “HODL” your crypto for years, cold storage is perfect. You don’t need daily access, just robust protection for your investment.
Durability: Many hardware wallets are built to withstand physical threats like fire or water, making them reliable for storing wealth over decades.
Bottom line:
Your crypto is safer from being hacked as cold storage meaning your keys are not connected to the internet.
The downside if you lose your private keys (seed phrases) you will lose all of your crypto and it cannot be recovered.
We will go over how I safely store my keys in future newsletters.
Are There Any Downsides?
Cold storage is less convenient for frequent trading. You’ll need to connect your device or access your backup phrase to move funds, which takes a few extra steps. And if you lose your hardware wallet or recovery phrase without a backup, your crypto could be lost forever.
Finding the Right Balance
Many experienced investors use a hybrid approach: keep a small amount in a hot wallet for daily use, and store the bulk of their holdings in cold storage for maximum security15. This way, you get both convenience and peace of mind.
Final Thoughts
On your crypto journey, security isn’t just a feature—it’s a necessity. Cold storage empowers you to truly own your assets, shield them from online threats, and sleep better at night knowing your investments are safe. As you continue exploring crypto, make cold storage a cornerstone of your security strategy—it’s one of the smartest moves you can make.
