This is a very good question and I would rather start by telling you what the meaning of digital assets and cold storage is.
When you talk about digital assets, you are talking about assets that cannot be touched and mostly and asset processed on technologies like computers, smartphone via an internet connection.
Secondly, what is cold storage ?
Before I give you the definition, let look at it from this angle. For example; you have some foodstuff such as fish, and meat, so in order for you to be able to preserve them, you have to make them cold by putting it in a deep freezer.
The same thing attached to your digital asset, in order for you to preserve it you have to keep it somewhere safe.
So what is cold storage ? Cold storage is the process of preserving your digital assets in a storage space such as online wallet in order to preserve it from been stolen by hackers till the time of use.
One benefits of cold storage to your digital assets is to preserve it for a long time due to time needed.
Types of cold storage
2. Paper wallet
Benefit/reason for cold storage for digital assets
Before proceeding, I will like to remind you that a cold storage is a kind of storage that is stored outside the internet access. It can only be access as at time of use and the digital assets include crypocurrencies.
So the reason we use cold storage for our digital assets are:
1. Preventing it from been stolen by hackers
2. Preventing from damage
3. To access it after a very long time
Concluding it with this,
cold storage is a very useful storage or digital assets in order to be safe with the user for a long time.
Cold Storage refers to a wallet for any cryptocurrency with it's keys/password not being on a device conne. Most people store their passwords in a notepad file on their desktop or a cloud storage type thing. The problem with this is that if someone were to hack you or gain access to your computer or cloud storage service, they would have full and complete access to your keys.
This is where cold storage comes in. Cold storage is most often just keys/passwords stored on a flash drive or written down. This method is infinitely safer since for someone to hack you they have to have physical access to actually be able to enter your account.