Cold storage refers to the process of "offline" of encrypted currency, which is equivalent to storing encrypted currency in a safe, and centrally stores cold data through permanent storage media with large capacity, low performance requirements and low cost, the purpose of which is to ensure its security. and reliability. At present, there are three main types of cold storage methods for cryptocurrencies:
- Use a hardware wallet.
- Print the QR code from the software wallet and store it in a safe place.
- Store the files in the software wallet on a USB and store it in a safe place.
Hot storage refers to the process of “onlineization” of cryptocurrencies, which is equivalent to storing cryptocurrencies in wallets. By keeping the network online, the data that needs to be frequently accessed by computing nodes is placed on the Internet for nearby calculation. The purpose is to ensure high frequency usage. easy access to data.