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Cold storage is a way of storing digital assets without a connection to the internet. Cold storage wallets are protected from unauthorized access, hacks and many other vulnerabilities of internet-connected wallets. Cold storages are widely applied in the cryptocurrency industry. In its most basic form, cold storage can be a paper wallet that has a private key and an address of the digital wallet printed onto a piece of paper. Arguably, the most popular Bitcoin cold storages are hardware wallets like USB drives and smart cards. Bitcoin cold storage wallets are often used by Bitcoin investors with a lot of wealth because of its security advantages. BTC cold storages are a necessity because of the fact that cryptocurrency frauds and hacks of exchange platforms are not compensated by most governments or banks, and the loss of an asset can become irrecoverable.