Cold Cryptocurrency Wallets

Well if anyone of us wants to buy, there’s a question that arises: Where exactly do we store the cryptocurrency that we buy? Sure we need some of our currency to be in our exchange accounts when we need to transact, but there’s always extra currency we need to store. The exchanges & online wallets are called “hot” storage because they require the internet, which, in turn becomes their biggest disadvantage. To solve that, we have “cold” cryptocurrency wallets.

Basically Cryptocurrency wallets act for cryptocurrency what banks & wallets do for traditional currency: They store your money. There are a number of different types of cold cryptocurrency wallets & all of them have their pros & cons. We have 4 main types:

-PC Wallets
-Hardware Wallets
-Paper Wallets
-Brain Wallets

"PC Cryptocurrency Wallets"

If you take our advice, a wallet that sits in your computer is not a good example of a cold storage wallet. The reason being that your computer can attain a virus, the hard drive can crash or maybe your computer can get fried in a power spike.

If you’re going to use this wallet, it’s recommended that you use that computer only for cryptocurrency storage. You can get a cheap computer for this purpose. This option is more reliable because that computer will not be connected to the internet & you won’t use it for other purposes. So no additional programs & no viruses. Unfortunately enough, some cryptocurrencies only support this option.

If the cryptocurrency you’re interested in supports the following 2 wallet types, we highly recommend you skip this one.

"Hardware Cryptocurrency Wallets"

The best balance between security & ease, hardware wallets are devices that have the least amount of software required to store cryptocurrency. Some of them look like a memory stick, & some others have a tiny screen you can use to control it.

These wallets are designed to hold specific currencies, so do your research. The wallet you use is dependent on your currency.

"Pros"

Hardware wallets can be plugged into your computer & your wallet can be accessed by just entering your PIN, or a security phrase. If it gets stolen, no one can gain access to it without the code. There’s negligible risk of hacking & some wallets provide you with the ability to backup your wallets online.

"Cons"

These wallets are still susceptible to power spikes, water & a slight chance of a hack. Most of them aren’t water resistant.

"Paper Cryptocurrency Wallets"

It’s totally offline, so it’s the safest option yet. Paper wallets are created by software & then printed on paper. It’s an easy way to store your private & public keys. You scan the QR codes to gain access to your public & private keys. Typing in your own address can result in a mistake &, subsequently, loss of a lot of money.

Some designs give you an option to hide your private keys. We suggest that you always research a paper wallet generator before using it.

"Pros"

They can’t be hacked or lost to a power spike, & they can’t be harmed by a virus either. You can easily create multiple wallets so all your money isn’t in the same place.

"Cons"

Whoever has the wallet, holds the currency. The key used to access the wallet is printed on it. So make sure to keep them in a secure place, like in a bank.

Also, don’t print your wallets on paper with an inkjet printer, because it can easily be tampered. The ink isn’t waterproof either. Make sure to use a “dumb” laser printer, because it won’t have access to the internet & internal storage of its own, both of which can be hacked. We suggest using high quality synthetic paper that’s compatible with laser printers. This is a limited option, so make sure your currency supports this kind of wallet.

"Brain Cryptocurrency Wallets"

This refers to the technique of memorizing a recovery phrase in your mind & not writing it down anywhere else. This is the most secure option. This option is all limited to some cryptocurrencies. Being the most secure, its also the most easy to lose as if you forget your pass phrase, all your money is lost.

We hope this article was of help to you, leave a comment below!

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