Off-Exchange Storage

Definition ∞ Off-Exchange Storage refers to the practice of holding cryptocurrency in wallets not directly controlled by centralized trading platforms. This includes hardware wallets, software wallets, or cold storage solutions where users maintain direct ownership of their private keys. Moving assets off exchanges is often done for enhanced security and to reduce counterparty risk. It signifies a long-term holding strategy rather than active trading intent.
Context ∞ News in the cryptocurrency space frequently analyzes trends in Off-Exchange Storage as an indicator of investor sentiment and market supply. A sustained increase in assets moved to private wallets can suggest a collective long-term outlook and reduced selling pressure. This trend provides valuable context for understanding the distribution and holding patterns of digital assets. It often precedes periods of market stability or price appreciation.