Cold wallets are offline wallets. They store your coins on a piece of paper or on hard drives which can be plugged into a computer. Cold wallets are not the most convenient to use but they provide the highest security. Since they are not connected to the internet there is no way for a hacker to get access to your fund. This is why cold wallets are for longer term storage. As cold wallets store your coins offline you don't have to worry about cyber-attacks.
There are two types of cold wallets:
- Hardware wallets
- Paper wallets