Secure Crypto with the Best Cold Wallets

Crypto Wallet Security: A Beginner’s Guide to Cold Wallets

We use cryptocurrencies for many different purposes. For example, 7Slots login By completing their operations, you can even use them to play games. But where do you store them and how do you ensure their safety? Cryptocurrencies can be accessed through a wallet, and the type and features of this wallet determine both your security level and how practical your transactions will be. Here, we will talk about cold wallets that provide superior security.

What is a Cold Wallet?

Cold wallets are physical devices used to securely store keys used to access cryptocurrencies. They are similar in appearance to USB sticks, but there are wallet manufacturers that use different designs. The reason they provide security is because they keep your private key in the blockchain offline. This special key is what unlocks your “vault.” Anyone with access to your private key can access your money stored on the blockchain. For the same reason, the security of the key is very important. You can think of cold wallets as simply a repository that stores your safe’s keys without being connected to the internet.

How Do Cold Wallets Work?

Contrary to popular belief, cold wallets are not used to store any cryptocurrency. Instead, they act as a key used to access your money on the blockchain. So, for example, let’s say you own 10 Bitcoins: Bitcoins are stored on the blockchain and you cannot move them anywhere else. However, you can store the key needed to access them in a cold wallet. In this context, you can think of wallets as your “username and password” to access your Bitcoins.

The keys stored in a wallet are of two types, public and private, and both consist of a large number of numbers. You can think of your public key as your username. Your private key is your secret password, the security of which you must be very careful about. A cold wallet stores your private key, keeping it safe and private. You can also store your key online (wallets that allow you to do this are known as “hot wallets”), but you take many security risks in doing so. For example, your private key could be compromised through a cyber attack. Cold wallets, on the other hand, are physical devices that you can carry with you, they do not have such risks. People who want to get your keys must have physical access to your wallet.

In this context, let’s share a table comparing cold and hot wallets to help you understand what you should expect from both:

Advantages and Disadvantages of Cold Wallets

Let’s first briefly list the advantages of cold wallets so that you can understand exactly what they offer:

Advantages:

• It is one of the best ways to secure your cryptocurrency. Since private keys are stored offline, they are protected against online attacks.
• They are user-friendly and can be used by anyone, even beginners will not have any difficulty.
• They provide backup options such as recovery codes, allowing you to access your cryptocurrency even if the device is lost or damaged.
• They allow you to connect to different blockchains from one place, meaning they support a wide range of currencies.
• They are suitable for long-term storage due to their high level of security.

But of course, cold wallets also have some disadvantages. Let’s take a look at them too:

Disadvantages:

• They are costly, you have to buy cold wallets. (Most hot wallets are free.) This may not be suitable for some users.
• They can still be lost, damaged or stolen. You must protect them.
• The initial setup can be a little confusing.
• Unlike easy-to-use hot wallets, you must connect the wallet to your computer each time to access your crypto. It is not practical.
• If you lose both the wallet and the recovery codes, you will have no way to access your crypto.

Now you know what cold wallets are, how they work, and what pros and cons they have. Let’s continue by explaining how you can choose the best ones and giving examples of popular cold wallets.

How to Choose a Cold Wallet?

When choosing a cold wallet, we recommend you pay attention to the following:

• Blockchain compatibility: The first and most important factor you should pay attention to is that the wallet supports the blockchain you are using. For example, if you are using the Ethereum blockchain, the wallet must also be Ethereum-supported. Most cold wallets support multiple blockchains, just make sure yours is supported too.
• Security features: The more security features, the better. A cold wallet must have a secure chip, custom operating system, Biometric authentication, Airgap technology, PIN code support and even a self-destruct mechanism (turning itself off after too many failed attempts). Additionally, it is always good if the software the wallet uses is open source.
• Ease of Use: While security is paramount, it is also important to choose a cold wallet that is easy to use. For example, you may prefer a device that uses a touch screen.

There are cold wallets on the market that support all of these features, but their prices can be high. However, considering what you will get in return, it is worth making such an investment.

Best Examples of Cold Wallets

We can list the best and most popular cold wallets on the market as of 2023:

1. Ledger Nano X: It is the second generation cold wallet of Ledger company. It also has a mobile app, you can check your balance or send and receive crypto with the “Ledger Live” app. It supports over 1,800 cryptos and even lets you earn rewards by staking crypto. Made of brushed stainless steel and plastic. Its dimensions are 72 mm x 18.6 mm x 11.75 mm and its weight is approximately 34 g. It has a 100mAh lithium ion battery.
2. Trezor Model T: With this wallet, you can access multiple exchanges directly from the device’s own interface. Its touch screen works like smartphones. Its dimensions are 64 mm x 39 mm x 10 mm and its weight is approximately 22 grams. It supports Bluetooth connection, so you don’t have to use a cable to connect it to the computer.
3. Cool Wallet Pro: This device was developed with a focus on DeFi and can use an encrypted Bluetooth connection to connect to a computer within a range of 10 meters. In addition to cryptos, NFTs can also interact with DeFi and dApps. It is water resistant and can run for several weeks on a single charge. Additionally, it offers impressive features such as Bluetooth Low Energy (BLE) with AES256 encryption, EAL6+ secure element (SE) and five processors that regulate power management.
4. Safepal S1: Launched in 2019, this wallet supports over 10,000 cryptocurrencies, 19 blockchains, and NFTs. To make the wallet even more secure, you can use two-factor authentication and PIN code. The wallet can work even in extreme weather conditions down to -4 degrees. Its battery is 400mAh and will last for weeks.
5. Keystone Pro: It is a completely airtight cold wallet and has open source software. It has a 4-inch touch screen and fingerprint sensor. It complies with BIP 32/39/44, is made of fiberglass and is completely waterproof. Its dimensions are 112 mm x 65 mm x 18 mm and its weight is approximately 115 g.

We recommend reviewing each wallet on this list and choosing the one that best suits your budget and needs.