An offline wallet, also known as a cold wallet, is a type of cryptocurrency storage system that is not connected to the internet. It is designed to provide a higher level of security by keeping private keys completely offline, reducing the risk of hacking, phishing, and malware attacks. Offline wallets are commonly used for long-term storage of digital assets rather than daily trading or frequent transactions. Examples include hardware wallets, paper wallets, and air-gapped devices. When a user wants to make a transaction, the offline wallet signs it without exposing the private keys online, and then the transaction is broadcast through an online device. This separation between signing and internet access makes offline wallets highly secure. However, users must carefully store backup seed phrases or recovery keys, as losing them can result in permanent loss of funds. Overall, offline wallets are ideal for investors prioritising security over convenience and frequent access in crypto storage.