A cold storage wallet often called cold wallet, is a type of cryptocurrency wallet that is not connected to the internet. In simple layman language, anything that helps us store our cryptocurrencies, be it Bitcoin,mm Ethereum, XRP, Dogecoin or the like, offline without the internet is called cold wallet.Read more: What is Cold Wallet?
In comparison to a hot wallet, which is connected to the internet (example cryptocurrency exchanges), cold wallets (offline wallet) are considered more secure because they are less vulnerable to hacking and other forms of online theft.
Types of Cold Wallets to Store Coins Offline
When it comes cold store Bitcoin or other coins, a hardware wallet comes first in the row. These are physical devices, similar to a USB flash drive, that store crypto graphic assets’ private keys offline.
As of now, hardware wallets are considered to be one of the most secure forms of cold storage because they are not connected to the internet and are therefore immune to remote hacking attempts.
Some of the most popular hardware wallets include:
These tools are considered safe because at the time of generated paper wallet no internet connection is required. Only thing that should be taken care of is that your computer must be malware free.
Before the hardware wallets, paper wallets were considered to be a very secure form of cold storage. Nowadays too if you follow the paper wallet generation guidelines carefully you can make use of paper wallet to store your coins. This cold storage way is also safe because at the time of generating address and private keys, paper wallet generation tools are not connected to the internet and are therefore immune to hacking attempts.
However, as mentioned earlier it’s important to scan your computer machine against malwares.
Once generate and move the coins to a paper wallet, it is important to store printed paper wallet documented in a safe and secure place, as they can be lost or damaged if not properly protected.
Third form of Cold wallets is software-based, such as a mobile app or desktop program that stores private keys on a device that is not connected to the internet. If you have a old computer or smart phone then you can think of this option.
These software-based cold wallets can be used to store private keys on a computer or mobile device that is not connected to the internet. This is useful for users who want to store their private keys on a device that they have physical access to, but cannot afford a hardware wallet.
Out of all the available options to cold store Bitcoins, I recommended hardware wallet because they are not so expensive and they make send, receive and hold cryptocurrencies a very easy task.
Here are recommended best hardware wallets to cold store your coins:
Without a second thought, a cold wallet is a highly secure way to store cryptocurrency because with help of secure element chips they store private keys offline in an isolated space and at the same time help you send and receive the coins without exposing your private keys to the internet.
As I mentioned, cold wallets come in a variety of forms for example hardware, paper, and software-based, each with its own set of pros and cons. You can choose one that sounds safe to you.
I personally suggest always go with a hardware if you can survive for 3 months on your crypto investment.
Hardware wallets are considered to be the most secure form of cold storage. They are not so expensive, and are very user-friendly.
On the other hand, Paper wallets are also considered to be very secure, but they can be lost or damaged if not properly protected and also if your computer was compromised at the time of generation then your funds will be at stake.
Software-based cold wallets are less expensive than hardware wallets and may be more user-friendly, but they require users to store their private keys on a device that they are not going to connect to the internet.
Finally, when it comes to storing cryptocurrency, it is important to consider the security of the wallet. You are investing your hard earned money so safeguard it with best available option.
If you are long term holder of coins then you must cold store your coins. If you are concerned about the security of your cryptocurrency then buy a hardware wallet
It is important to remember that after buying crypto coins you foremost priority must be storing them in a safe place where only you can access them.
For more information, you are advised to read, “4 major reasons to buy a hardware wallet right now.”