An air-gapped system is basically a digital fortress with a moat, drawbridge, and alligators thrown in for good measure. This setup ensures there’s no internet connection or external network access, making it much harder for hackers to sneak in and pilfer your private keys. You might use a dedicated, never-connected laptop or hardware device to generate seed phrases and sign transactions.

Air-gapping is often used by serious Bitcoin holders who value peace of mind over convenience. It can feel like using a safe buried under a mountain, guarded by a friendly dragon, but it’s one of the best ways to protect your keys from remote compromise. The only trade-off is that every interaction with the device—like signing a transaction—requires physically transferring data via USB stick or QR codes, which can be a bit of extra work.