IT & Software Exam > IT & Software Questions > What is cold storage?a)A place to hang your c...
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What is cold storage?
a)A place to hang your coat
b)A private key not connected to the Internet
c)A private key connected to the Internet
d)A desktop wallet
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
What is cold storage?a)A place to hang your coatb)A private key not co...
Correct Answer :- B
Explanation : A cold wallet is a cryptocurrency wallet that is not connected to the internet. With cold storage, the generation and storage of the private keys is done in an offline environment. Online environments are vulnerable to hackers, who therefore actively attack online crypto wallets.
Most Upvoted Answer
What is cold storage?a)A place to hang your coatb)A private key not co...
Security.
Cold Storage:
Cold storage refers to storing cryptocurrency private keys offline, which makes it less prone to cyber-attacks as it is not connected to the internet. It is one of the most secure ways of storing cryptocurrencies, and it is highly recommended for long-term storage.
Private Key:
A private key is a secret code that allows access to cryptocurrencies. It is used to sign transactions and prove ownership of the cryptocurrency. A private key is required to access the funds stored in a cryptocurrency wallet.
Connected to the Internet:
A private key that is connected to the internet is more vulnerable to cyber-attacks as it is accessible to hackers through the internet. It is not recommended to store cryptocurrency private keys on devices that are connected to the internet.
Desktop Wallet:
A desktop wallet is a software program that allows storing cryptocurrencies on a computer. Desktop wallets can be connected to the internet or offline, and it is recommended to use an offline desktop wallet for cold storage.
Conclusion:
In conclusion, cold storage refers to storing cryptocurrency private keys offline, which makes it less prone to cyber-attacks. A private key not connected to the internet is the most secure way of storing cryptocurrencies, and it is recommended for long-term storage. A desktop wallet can be used for cold storage, and it is recommended to use an offline desktop wallet for maximum security.
Cold Storage:
Cold storage refers to storing cryptocurrency private keys offline, which makes it less prone to cyber-attacks as it is not connected to the internet. It is one of the most secure ways of storing cryptocurrencies, and it is highly recommended for long-term storage.
Private Key:
A private key is a secret code that allows access to cryptocurrencies. It is used to sign transactions and prove ownership of the cryptocurrency. A private key is required to access the funds stored in a cryptocurrency wallet.
Connected to the Internet:
A private key that is connected to the internet is more vulnerable to cyber-attacks as it is accessible to hackers through the internet. It is not recommended to store cryptocurrency private keys on devices that are connected to the internet.
Desktop Wallet:
A desktop wallet is a software program that allows storing cryptocurrencies on a computer. Desktop wallets can be connected to the internet or offline, and it is recommended to use an offline desktop wallet for cold storage.
Conclusion:
In conclusion, cold storage refers to storing cryptocurrency private keys offline, which makes it less prone to cyber-attacks. A private key not connected to the internet is the most secure way of storing cryptocurrencies, and it is recommended for long-term storage. A desktop wallet can be used for cold storage, and it is recommended to use an offline desktop wallet for maximum security.
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Community Answer
What is cold storage?a)A place to hang your coatb)A private key not co...
No the answer is wrong. it should be "C".
a private key connected to the internet is called Hot wallet / storage.
and when it's offline it's called cold wallet / storage like a hardware wallet.
when something is in use it requires some energy and becomes hot (relatively) and that's why they named these wallet after this phenomenon... (that's what I think)
please fix the option.
a private key connected to the internet is called Hot wallet / storage.
and when it's offline it's called cold wallet / storage like a hardware wallet.
when something is in use it requires some energy and becomes hot (relatively) and that's why they named these wallet after this phenomenon... (that's what I think)
please fix the option.
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What is cold storage?a)A place to hang your coatb)A private key not connected to the Internetc)A private key connected to the Internetd)A desktop walletCorrect answer is option 'B'. Can you explain this answer?
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