Definition ∞ Cold storage transfers involve moving digital assets from online, internet-connected wallets to offline storage methods. These methods include hardware wallets, paper wallets, or encrypted drives, which are disconnected from the internet. The primary purpose is to enhance security by reducing exposure to online threats such as hacking or malware. Such transfers represent a deliberate choice for long-term holding and security.
Context ∞ News frequently reports on large cold storage transfers by institutional investors or exchanges, often interpreted as a sign of long-term conviction or enhanced security measures. These movements can impact exchange liquidity and market sentiment, signaling a reduction in immediately available selling supply. Understanding cold storage transfers provides insight into the strategic asset management practices of major crypto holders.
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