![Crypto Terms Glossary: What is Collateralization? Crypto Terms Glossary: What is Collateralization?](/img/66/288/what-is-collateralization-sm.webp)
Cold storage refers to the offline storage of crypto on a cryptocurrency wallet. "Offline" means that the wallet is disconnected from the internet, preventing hackers from accessing it. It could also refer to the transaction signing process being done "in-device" and offline prior to being broadcast to the blockchain network. Cold storage is considered to be the most secure way to hold crypto assets.