How are tokens withdrawn if they are in cold storage?

When you deposit BTC or Dash into the LocalCoinSwap exchange, your deposits are transferred directly into cold storage. LocalCoinSwap operates hot wallets for these currencies. These hot wallets will only ever hold at maximum 5% of deposited funds. When the hot wallets run low we send some cryptocurrency out of cold storage and onto the hot wallets to top them up. All withdrawals from the LocalCoinSwap platform come from the hot wallets.

Your BTC and Dash deposit addresses are for accounting purposes. The blockchain balance of your deposit address does not necessarily reflect your balance on the exchange.