Cold staking refers to the process of staking
on a wallet that’s not connected to the Internet. This may be done using a hardware wallet, but it’s also possible with an air-gapped software wallet.
Networks that support cold staking allow users to stake while securely holding their funds offline. It’s worth noting that if the stakeholder moves their coins out of cold storage, they’ll stop receiving rewards.
Cold staking is particularly useful for large stakeholders who want to ensure maximum protection of their funds while supporting the network.