The cold wallet is an offline wallet used to store Bitcoin. In the cold wallet, the digital wallet is stored on a platform that is not connected to the Internet. Thus protecting the wallet against unauthorized access, cyber attacks and other vulnerabilities that the system connected to the internet is sensitive to. In a traditional bank system, the bank can return the money again as a result of money loss in the absence of user defects.
However, if your account or wallet is compromised and your bitcoins are stolen, you will not be able to receive the stolen coins. Therefore, cold wallets meet the need for a safe and secure storage for Bitcoin and altcoins.