Cold wallets provide enhanced security by keeping digital assets disconnected from online threats. They protect funds from phishing attacks, malware, and unauthorized access. Investors use cold wallets to store large amounts of cryptocurrency safely. Unlike hot wallets, they do not rely on constant internet connectivity, reducing exposure to cyber risks. Cold wallets are an essential tool for long-term crypto holders and institutional investors. Always back up your private keys and store them in a secure location. Use hardware wallets or paper wallets for added security.