Offline Storage vs. Cold Storage… What Does Coinbase Use?

cold storage and offline storage on coinbase

Cold storage, also known as offline storage, is the best way to protect your cryptocurrency assets. Cold storage means storing your cryptocurrency keys offline. Bitcoin purists insist on cold storage. This is because storing keys online increases the attack surface of an investment. An attack surface is increased when a third party is used (such as an Internet service provider, computer or an online exchange), because it introduces vulnerabilities to the security of cryptocurrency holdings. As such, as a form of risk management and security, cryptocurrency exchanges (online businesses that…

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