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Blockchain & Crypto vocabulary · Wallets & Keys

Cold wallet

Meaning in blockchain & crypto, with examples

nounCore term

In blockchain & crypto, cold wallet means: A wallet whose private keys are kept completely offline, for example on a hardware device or on paper, so that hackers cannot reach them over the internet.

In Turkish: soğuk cüzdan, çevrimdışı cüzdan, soğuk depolama

How it is used

Used together with cold storage, which describes the practice. Exchanges and custodians say they keep most customer assets in cold storage. Signing from a cold wallet takes more steps, so it is used for large amounts and long-term holding.

Example sentences

  1. We move funds from the cold wallet to the hot wallet twice a day, after two managers approve.

  2. The audit confirmed that 95 percent of client assets are held in cold wallets.

Common collocations

  • cold storage
  • move funds to a cold wallet
  • offline cold wallet
  • cold wallet setup
  • hot walletA wallet whose keys are kept on a device connected to the internet, such as a phone app or browser extension. It is convenient for daily use but more exposed to hacking.
  • hardware walletA small physical device, often similar to a USB stick, that stores private keys offline and signs transactions inside the device, so the keys never touch an internet-connected computer.
  • self-custodyKeeping your crypto in a wallet where you alone hold the private keys or seed phrase, instead of leaving it with an exchange or another company.
  • multisigShort for multi-signature: a wallet setup that needs approval from several private keys, such as 2 of 3 or 3 of 5, before a transaction can be sent.
  • private keyA secret number that proves you own a wallet and lets you sign transactions. Anyone who has the private key can move the funds, so it must never be shared.

More terms: Wallets & Keys

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