The risks associated with custodial wallets are significant since exchanges control private keys, leaving users vulnerable to hacks and potential asset loss. Cold wallets offer a secure alternative by storing private keys offline, thus providing users complete control over their cryptocurrency. These wallets are ideal for long-term investors, although they may not suit frequent traders who require quick access to their assets. Despite the technicalities and costs involved in setting up cold wallets, the trend shows a growing number of investors are opting to move their crypto, particularly Bitcoin, out of exchanges and into cold storage for enhanced security.