Understand the technology and security principles behind cryptocurrency cold storage and hardware wallets.
Cold storage refers to keeping cryptocurrency private keys completely offline, isolated from internet-connected devices and potential online threats. Hardware wallets like Trezor are the most popular and user-friendly form of cold storage.
Private keys are stored on internet-connected devices
Risk: Vulnerable to malware, hacking, and remote attacks
Private keys never touch the internet
Security: Protected from online threats and remote attacks
You create a transaction in Trezor Suite (e.g., send 0.5 BTC to address xyz). This is done on your internet-connected computer.
Transaction details appear on the Trezor screen. You verify the recipient address and amount directly on the trusted device display.
Inside the secure chip, the transaction is signed using your private key. The private key NEVER leaves the device.
The signed transaction is sent back to your computer and broadcast to the blockchain network. Only the signature is exposed, never your private key.
Your private keys are generated and stored exclusively on the Trezor device. They never appear on your computer, in memory, or transmitted over the internet. Even if your computer is infected with malware, your funds remain secure.
When you initialize a new Trezor, it generates your private keys using a cryptographically secure random number generator built into the device's secure chip.
All your private keys are derived from a single seed. This means your 24-word recovery phrase can restore ALL your cryptocurrency wallets across different blockchains.
The secure element (chip) in Trezor is designed to resist physical attacks, power analysis, and tampering. Private keys cannot be extracted even with direct hardware access.
✓ Private keys never leave the secure element
Only signed transactions and public keys are transmitted to the computer