"Cold storage" simply means keeping the private keys out of reach of hackers by storing or generating them on a device that is not connected to the internet. The credentials necessary to spend crypto can be stored offline in a number of different ways, from simple paper printouts of private keys, to specialized hardware wallets.

A paper wallet is created with a keypair generated on a computer with no internet connection; the private key is written or printed onto the paper and then erased from the computer. The paper wallet can then be stored in a safe physical location for later retrieval. Physical wallets can also take the form of metal token coins with a private key accessible under a security hologram in a recess struck on the reverse side.^([better source needed]) The security hologram is tamper-evident technology which self-destructs when removed from the token, showing that the private key has been accessed.

The British Museum's coin collection includes four specimens of funded bitcoin tokens; one is currently on display in the museum's money gallery.

A hardware "wallet" is a small and portable computer peripheral that signs transactions as requested by the user. These devices store private keys and carry out signing and encryption internally, and do not share any sensitive information with the host computer except already signed (and thus unalterable) transactions. Because hardware wallets never expose their private keys, even computers that may be compromised by malware do not have a vector to access or steal them.The user sets a passcode when setting up a hardware signer.

As hardware signers are tamper-resistant, without the passcode the assets cannot be accessed.