Why companies save cryptocurrency in cold storage and why you should do so ?

After the revolution caused by the encrypted currencies, some problems began to appear in the storage of these currencies, especially in terms of storage of these currencies

Is it safe or not ?, here I will talk about the most prominent term became a companion to the bitcoin is the term Cold storage.

Cold storage is a safe place to save cryptocurrencys from hackers. You can only connect the wallet to the Internet to send and receive "cryptocurrencys", this ensures that no one can steal your money.

One of the main reasons that led to the adoption of this type of wallet is the largest theft occurred, where a trading platform was stolen called Mt. Gox exchange The size of the robbery was estimated at 850,000 btc pulled out of its hot wallet, but it is not the only exchange platform that has suffered major thefts.

Companies use cold storage to prevent hackers from stealing the entire buffer. If their servers are hacked, the company retains the majority of the reserve in cold storage, or otherwise does not exist on a web server or any other computer. The only amount that is kept on the server is the amount required to cover operations Expected Drawdown.

Here are some of the pros and cons of keeping a Bitcoin in Cold Storage:

Positives:

•  Easy and simple transfer
•  Easily stored anywhere (safe deposit box or similar)
•  Usually readily available.

Negatives:

•  Vulnerable to damage
•  Can not be easily restored

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I spent a fow hours writing in this, I hope that this post you like it, I'm sorry about the grammatical errors