Definition
A method of storing Bitcoin offline, away from internet-connected devices. Hardware wallets and paper wallets are common forms of cold storage.
Related Terms
Block Reward
The amount of new Bitcoin awarded to miners for successfully adding a new block to the blockchain. Currently 3.125 BTC per block after the 2024 halving.
Confirmation
When a Bitcoin transaction is included in a block, it receives one confirmation. Each subsequent block adds another confirmation, increasing certainty that the transaction is final.
Blockchain
A distributed, immutable ledger that records every Bitcoin transaction ever made. Each block contains a set of transactions and links to the previous block.
Custodial Wallet
A wallet where a third party (like an exchange) holds your private keys on your behalf. Convenient but means you don't have full control of your Bitcoin.
Block
A collection of Bitcoin transactions that are bundled together and added to the blockchain. Each block references the previous block, forming a chain.