provider rather than on the user's hardware. As a result, the user must have complete trust in the online wallet provider. A malicious provider or a breach in server security may cause entrusted crypto to be stolen. An example of such a security breach occurred with Mt. Gox in 2011.

Cold storage

"Cold storage" simply means keeping the private keys out of reach of hackers by storing or generating them on a device that is not connected to the internet.

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