All terms
Keys kept on a device that never connects to the internet.
Cold storage means the private key is generated and stored on hardware that is never online. Transactions are signed on the device, so the key never touches your computer.
This is the standard for holdings you cannot afford to lose. Even if your computer is fully compromised, the attacker cannot extract the key.
A hardware wallet is cold storage. A wallet app on your phone is not, no matter how careful you are.
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