Cold Storage
Cold storage describes any method of storing data which does not connect to the internet or any other devices.
Cold storage describes any method of storing data which does not connect to the internet or any other devices. A cold wallet is a form of cold storage often used by bitcoiners to protect bitcoin which they do not plan on moving frequently. A wallet is considered a cold wallet if the private keys are kept on a device isolated from the internet.
However, the public keys of a cold wallet can still be used on a separate device connected to the internet. This allows users to receive funds directly to a cold wallet without sacrificing any security.
Cold storage is more secure than hot storage because almost all malware is introduced to devices through the internet. However, this benefit comes with inferior convenience. Thus, cold storage should be used for large amounts of bitcoin that are not intended for day-to-day use.
Cold storage refers to keeping Bitcoin private keys completely offline, disconnected from the internet, to protect against hacking and unauthorized access. Onramp utilizes institutional-grade cold storage through multi-institution custody partners BitGo, CoinCover, and Tetra Trust.
Frequently Asked Questions
What is cold storage for Bitcoin?
Cold storage means storing Bitcoin private keys on devices or media that are never connected to the internet, such as hardware wallets or air-gapped computers. This eliminates remote attack vectors.
Is cold storage the safest way to hold Bitcoin?
Cold storage is widely considered the most secure method for long-term Bitcoin storage. Onramp employs institutional cold storage solutions that protect approximately $250M in client assets.
Does Onramp use cold storage?
Onramp uses multi-institution custody through BitGo, CoinCover, and Tetra Trust, which employ institutional-grade cold storage with multiple security layers, geographic distribution, and insurance coverage.
