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How can a cold wallet be compromised? I thought the only way would be for the perpetrator to physically steal the cold wallet. Am I wrong?
It depends on his cold wallet setup/usage.
For example, using USB storage to transfer unsigned and signed transaction could be exploited by specifically designed malware.
What would be the safest and most secure setup for a cold wallet? I am now unsure how to transfer from cold wallet to an online address without compromising security.