Cold/hot storage is a way of storing digital assets using two separate storage services.

Cold storage, also called offline storage, is a method of storing digital assets that is not connected to the internet. This means that the assets are stored in a secure, encrypted location where no one can access them. Examples of cold storage include physical wallets and paper wallets. This is the safest way of storing digital assets, as it is nearly impossible for anyone to hack into the storage device.

Hot storage, also known as online storage, is a method of storing digital assets that are available and accessible over the internet. This means that the assets can be accessed quickly from any computer or mobile device. Examples of hot storage include web wallets, desktop wallets, and mobile wallets. This is a less secure method of storing digital assets, as malicious hackers may be able to access the wallets if the correct security measures are not taken.

Both cold and hot storage methods have their advantages and disadvantages. Cold storage provides the highest level of security as it is not connected to the internet, however it can be cumbersome and time consuming to access the assets. Hot storage is a more convenient option as the assets can be accessed quickly and easily, but it is more vulnerable to attack by malicious hackers.

When deciding which storage option is best for you, it is important to consider the security of the assets. Cold storage is more secure, but it is best to use both cold and hot storage in order to maximise security. Additionally, you should also consider the convenience of the storage option, as you will need to be able to access the assets quickly in order to take advantage of market movements.