private keys</strong></a> of crypto accounts. Online storage devices are convenient and easily accessible. &nbsp;However, this also means that they are easy to access by attackers, giving them the potential to steal vital and sensitive data.</p>\n<p>Therefore, while online storage is really convenient, <strong>it is definitely less secure than</strong> <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-offline-storage/">offline (or cold) storage</strong></a>. With offline storage, data is stored on devices such as <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-hardware-wallet/">hardware wallets</strong></a> that aren't connected to the internet and thus can&rsquo;t be hacked remotely.</p>\n<p>Online storage devices, on the other hand, <strong>stay connected to the internet most of the time</strong> (not only when a transaction needs to be delivered to the network). This extends the time frame for attackers to get access. 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Assets?","featured_image_id":6542,"status":"published","chapter_id":7,"language":"en","order":5,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/how-to-get-free-crypto","featured_image":{"id":6542,"uuid":"4fceb9ab-391e-4ef9-b00d-c871a49878a3","public_url":"https://assets.bitdegree.org/crypto/storage/media/how-to-get-free-crypto.o.jpg","path":"crypto/storage/media/how-to-get-free-crypto.o.jpg","original_path":"crypto/storage/media/how-to-get-free-crypto.jpg","name":"how-to-get-free-crypto.o.jpg","original_name":"how-to-get-free-crypto.jpg","title":null,"alt":null,"width":768,"height":478,"disk":"spaces","status":"uploaded","readable_file_size":"93.93KB"},"youtube_video":null},{"slug":"how-to-arbitrage-crypto","title":"What is Crypto Arbitrage: The Main 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Crypto?","featured_image_id":6532,"status":"published","chapter_id":7,"language":"en","order":9,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/what-is-a-rug-pull-in-crypto","featured_image":{"id":6532,"uuid":"be8043fb-078c-4487-9af9-d2d9c2b574ea","public_url":"https://assets.bitdegree.org/crypto/storage/media/what-is-a-rug-pull-in-crypto.o.jpg","path":"crypto/storage/media/what-is-a-rug-pull-in-crypto.o.jpg","original_path":"crypto/storage/media/what-is-a-rug-pull-in-crypto.jpg","name":"what-is-a-rug-pull-in-crypto.o.jpg","original_name":"what-is-a-rug-pull-in-crypto.jpg","title":null,"alt":null,"width":768,"height":478,"disk":"spaces","status":"uploaded","readable_file_size":"92.28KB"},"youtube_video":null},{"slug":"how-to-avoid-rug-pulls-in-crypto","title":"How to Spot and Avoid Rug Pulls?","featured_image_id":6555,"status":"published","chapter_id":7,"language":"en","order":10,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/how-to-avoid-rug-pulls-in-crypto","featured_image":{"id":6555,"uuid":"80cbed9d-3b4b-45d9-9a85-d2d8108c0f32","public_url":"https://assets.bitdegree.org/crypto/storage/media/how-to-avoid-rug-pulls.o.jpg","path":"crypto/storage/media/how-to-avoid-rug-pulls.o.jpg","original_path":"crypto/storage/media/how-to-avoid-rug-pulls.jpg","name":"how-to-avoid-rug-pulls.o.jpg","original_name":"how-to-avoid-rug-pulls.jpg","title":null,"alt":null,"width":768,"height":478,"disk":"spaces","status":"uploaded","readable_file_size":"111.99KB"},"youtube_video":null},{"slug":"how-to-avoid-crypto-taxes","title":"The Key Legal Techniques of Avoiding Crypto 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Analysis","slug":"crypto-analysis","updated":null,"chapter":"https://assets.bitdegree.org/crypto/assets/crypto-book/chapters/learn-crypto-analysis.jpg","chapter_simple":"https://assets.bitdegree.org/crypto/assets/crypto-book/chapters-simple/crypto-analysis-101.jpg","rating":100,"sections":[{"slug":"what-is-bullish-and-bearish","title":"Bearish and Bullish Markets: Do They Matter?","featured_image_id":null,"status":"published","chapter_id":8,"language":"en","order":1,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/what-is-bullish-and-bearish","featured_image":null,"youtube_video":null},{"slug":"best-technical-analysis-indicators-for-crypto","title":"5 Best Crypto Technical Analysis Indicators You Must Know About","featured_image_id":null,"status":"published","chapter_id":8,"language":"en","order":2,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/best-technical-analysis-indicators-for-crypto","featured_image":null,"youtube_video":null},{"slug":"what-is-candlesticks","title":"Technical Analysis: What are Candlesticks, Trendlines, and Patterns?","featured_image_id":null,"status":"published","chapter_id":8,"language":"en","order":3,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/what-is-candlesticks","featured_image":null,"youtube_video":null},{"slug":"how-to-track-new-crypto-coins","title":"Crypto Tracking: How to Track Your Favorite Coins & 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Terms","updated":false,"chapter":"https://assets.bitdegree.org/crypto/assets/crypto-book/chapters/crypto-101-glossary.jpg","chapter_simple":"https://assets.bitdegree.org/crypto/assets/crypto-book/chapters-simple/crypto-glossary-101.jpg","rating":100,"sections":["A","B","C","D","E","F","G","H","I","J","K","L","M","N","O","P","Q","R","S","T","U","V","W","X","Y","Z"]}],"nextSection":{"id":566,"original_id":null,"author_id":41,"translator_id":null,"title":"What is Offline Storage?","slug":"what-is-offline-storage","section":"O","keyword":"Offline Storage","status":"published","definition":"the storage of cryptocurrency or other digital assets in devices that do not maintain an internet connection.","content":"<p><strong>Offline storage</strong> is the storage of the <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-private-key-secret-key/">private keys</strong></a> of a <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-cryptocurrency/">cryptocurrency account in an offline device. Although it is common to say that offline storage is used for cryptocurrency itself, it&rsquo;s actually used to store the keys that grant access to the <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-crypto-asset/">crypto assets</strong></a>.</p>\n<p>Offline storage means that an internet connection is not required to access the keys. This prevents unauthorized attempts to access the storage device, thus reducing the risk of the keys or the crypto assets being stolen or misused. Offline storage makes it <strong>virtually impossible to steal sensitive information</strong> without physical access to the device.</p>\n<p><a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-online-storage/">Online storage</strong></a>, on the other hand, is used to keep data on devices that maintain an active internet connection. Such devices can be easier to access for malicious purposes as the encryption and other security measures in place may be compromised via the network.</p>\n<p>Although offline storage devices can come online for a short period of time while transferring transaction data to the network, they go offline after the procedure is finished. Any malicious party would not be able to view the private key, which is stored offline even if the transaction is accessible.</p>\n<p>The term offline storage is often used interchangeably with <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-cold-wallet/">cold wallet</strong></strong></a>, or <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-hardware-wallet/">hardware wallet</strong></a>. <a href=https://www.bitdegree.org/"https://www.bitdegree.org/crypto/goon/ledger-nano-x/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>Ledger</strong></a>, <a href=https://www.bitdegree.org/"https://www.bitdegree.org/crypto/goon/trezor-model-t/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>Trezor</strong></a>, and KeepKey are some of the best-known cold wallets. Other devices, such as <strong>CDs</strong>, USBs, or even <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-paper-wallet/">paper wallets</strong></a>, can be used for offline storage.</p>","level":"easy","meta_title":"What is Offline Storage? Definition & Meaning | Crypto Wiki","meta_description":"Offline Storage meaning: Offline Storage - the storage of cryptocurrency or other digital assets in devices that do not maintain an internet connection.","meta_keywords":null,"language":"en","created_at":"2022-03-24T07:52:55.000000Z","updated_at":"2022-05-13T14:32:23.000000Z","preview_url":"https://www.bitdegree.org/crypto/learn/crypto-terms/what-is-offline-storage"},"prevSection":{"id":564,"original_id":null,"author_id":41,"translator_id":null,"title":"What is Off-Chain Transaction?","slug":"what-is-off-chain-transaction","section":"O","keyword":"Off-Chain Transaction","status":"published","definition":"a transaction that occurs outside of the main blockchain.","content":"<p>An <strong>off-chain transaction</strong> occurs outside of the main <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-blockchain/">blockchain. Off-chain transactions were developed as a solution to the issues related to on-chain transactions &ndash; financial operations that occur when cryptocurrency tokens are transferred within the native blockchain network.</p>\n<p>Although cryptocurrencies like <a href=https://www.bitdegree.org/"https://www.bitdegree.org/crypto/buy-ethereum-eth/">Ethereum (ETH)</strong></a>, Solana (SOL), and <strong>Dogecoin (DOGE)</strong> offer unique functionalities and differ from each other, they are all based on the core principles of <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-decentralization/">decentralization that <a href=https://www.bitdegree.org/"https://www.bitdegree.org/crypto/buy-bitcoin-btc/">Bitcoin (BTC)</strong></a> was developed with.</p>\n<p>A decentralized blockchain network allows users to conduct financial transactions using <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-node/">network nodes</strong></a> that verify the transactions inside the <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-distributed-ledger/">distributed ledger</strong></strong></a>. Cryptocurrency can be transferred via the network anywhere in the world, regardless of the locations of the sender and receiver.</p>\n<p>Off-chain transactions were created to solve some of the issues that blockchain transactions encounter. They serve as a <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-are-second-layer-solutions/">second-layer solution</strong></a> that moves the transaction outside the main blockchain. Second-layer protocols make the transaction process cheaper and faster.</p>\n<p>The second layer encompasses projects and <strong>protocols</strong> built on top of the base blockchain. These projects are designed to improve the overall blockchain technology and user experience. Their goal is to expand blockchain functionality beyond its initial build.</p>\n<p>Off-chain transactions are frequently used for debt agreements. Both parties must have <strong>mutual confidence</strong> that they owe each other a predetermined amount of cryptocurrency, making the transaction legitimate.</p>\n<p>The transaction stays completely outside of the main blockchain network and occurs instantaneously. Users can then repay the remaining debt using a single on-chain transaction. They can create a channel for <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-private-key-secret-key/">private key</strong></a> exchange for the wallets involved in the off-chain transaction.</p>\n<p>As long as the <strong>channel remains open</strong>, users can swap cryptocurrency until a settlement is reached. The parties involved in the operation can then stop the channel and perform an on-chain operation to record the final transaction value.</p>\n<p>Some of the best-known off-chain protocols are the <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-lightning-network/">Lightning Network</strong></a> and <strong>Liquid Network</strong>.</p>\n<p>There are numerous advantages to performing an off-chain transaction, including:</p>\n<ul>\n<li>Off-chain transactions help resolve the scalability issues of blockchain technology;</li>\n<li>The transactions are executed significantly <strong>faster</strong> than on-chain which requires more time to be confirmed due to network congestion;</li>\n<li>Until the transaction is added to the blockchain, the parties may not be required to pay any fees;</li>\n<li>Parties conducting an off-chain transaction can remain anonymous as the transaction data is not recorded on the main blockchain and, therefore, isn&rsquo;t publicly available.</li>\n</ul>","level":"medium","meta_title":"What is Off-Chain Transaction? Definition & Meaning | Crypto Wiki","meta_description":"Off-Chain Transaction meaning: Off-Chain Transaction - a transaction that occurs outside of the main blockchain.","meta_keywords":null,"language":"en","created_at":"2022-03-24T07:48:43.000000Z","updated_at":"2022-05-13T14:32:23.000000Z","preview_url":"https://www.bitdegree.org/crypto/learn/crypto-terms/what-is-off-chain-transaction"},"currentChapter":"O","currentSection":"what-is-online-storage","chapterTitle":"O","readingLevel":"easy"},"url":"/crypto/learn/crypto-terms/what-is-online-storage","version":"cdd198d50cbe5c9c21c9329d7c096ffc"}" class="container-fluid d-flex crypto-book p-0">
Crypto Terms: Letter O

What is Online Storage?

Online Storage MEANING:
Online Storage - an internet-connected device or system that is used to store cryptocurrencies and the private keys for crypto accounts.
Easy
1 minute

Let's find out Online Storage meaning, definition in crypto, what is Online Storage, and all other detailed facts.

Online storage (or online wallet) is a device that is constantly connected to the internet. It is used to store cryptocurrencies and private keys of crypto accounts. Online storage devices are convenient and easily accessible.  However, this also means that they are easy to access by attackers, giving them the potential to steal vital and sensitive data.

Therefore, while online storage is really convenient, it is definitely less secure than offline (or cold) storage. With offline storage, data is stored on devices such as hardware wallets that aren't connected to the internet and thus can’t be hacked remotely.

Online storage devices, on the other hand, stay connected to the internet most of the time (not only when a transaction needs to be delivered to the network). This extends the time frame for attackers to get access. Though when a user turns off their internet connection or shuts the device down, online storage gets offline.

Luckily, encryption and other security techniques are used to secure internet storage devices and servers. This includes browser-based wallets (such as MetaMask), mobile-based wallets (such as Enjin and Trust Wallet), and PC/laptop-based wallets such as (Coinomi and Coinspot).