Why Cold Storage Matters
Cold storage refers to keeping your cryptocurrency private keys completely offline, away from any internet-connected device. This is the gold standard for crypto security.
Hot Wallets vs Cold Wallets
Hot wallets are connected to the internet, making them convenient but vulnerable to hacks. Cold wallets, like Ledger hardware wallets, keep your keys offline and safe.
How Ledger Implements Cold Storage
Your Ledger device uses a secure element chip that never exposes your private keys, even when connected to your computer. Transactions are signed within the device itself.
The Security Architecture
Ledger devices use multiple layers of security:
- Certified secure element chip (EAL5+)
- Custom operating system (BOLOS)
- PIN code protection
- Physical verification on device screen
This multi-layered approach ensures that your assets remain secure even if your computer is compromised.