Cold storage means keys held offline, disconnected from anything reachable over a network. It is slower to use on purpose, and that slowness is the security.
The practical version is boring and effective: keep what you actively trade where you can reach it quickly, and keep what you are not touching this month somewhere that takes deliberate effort to open. Almost every large loss involves someone whose entire holding sat in the most convenient possible place.
Binance Academy covers this in more depth: https://www.binance.com/en/academy/glossary/cold-storage
Trading crypto from Dubai since 2019.
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