Storing our cryptocurrencies safely is the goal of cold wallets. A type of wallet that offers great security to protect our funds from theft and hacking.
When we talk about security for our cryptocurrency funds, the best option is to choose between cold wallets or cold wallets. They are the perfect union between functionality and security at all times and allow you to have the peace of mind that funds can hardly be stolen. We invite you to learn about these wallets and all the features that only they can offer you.
You will surely already know the concept of wallets or cryptocurrency purse. They are purses or digital wallets where you can store and manage your money in this case, cryptocurrencies. Thus cold wallets are those that use keys generated by a source that is not connected to the blockchain and therefore not to the Internet. For what are called cold wallets.
This type of wallet offers a huge advantage over the others, since they act as a savings bank account. Where we can save money that we will not use for some time. They are the most used by users to deposit and safeguard large amounts of cryptocurrencies and offer an unsurpassed level of security.
Cold wallets, not being in constant connection with the Internet, are not prone to hacking attacks or key theft as is the case with hot wallets. However, there is a risk of losing money if the hardware or paper that contains them is lost. To better understand this, let’s see the types of cold wallets that exist today.
Characteristics of cold wallets
- By not staying in line with blockchain networks and the Internet, they offer protection and security against malware and other malicious software.
- They allow us to store large amounts of money safely and efficiently.
- They do not require third parties to manage the keys and manage the cryptocurrencies; as it happens with online wallets.
- They have limited means of communication to maximize the security they offer.
- They generally allow you to add an extra layer of security through the PIN configuration of your choice, preventing a third party from using the device.
- The keys are generated and maintained within the same device where the wallet is used. They never leave said device, so they stay safe and secure.
- They are compatible with most of the available operating systems.
- They have the ability to generate a seed that allows us to restore the keys and recover the funds.
- In the case of paper wallets, they are not feasible to breakdown or damage the equipment as it happens with other types of cold wallets, such as hardware wallets.
Recommendations for its use
- As we have mentioned throughout our article, we repeatedly recommend making a written endorsement of the seed or keywords. Which are generated when starting the configuration of the hardware devices. This backup must be kept in a safe and secure place, since in case of loss it is what will allow us to recover our funds.
- In the case of paper wallets, they must also be kept in a safe and protected place out of the sight and access of any other person.
- Backups of seed or paper wallets should never be done on the computer or mobile devices such as phones and tablets. Image formats, PDF documents, files sent to email, or cloud services like Drive are prone to hacking and theft.
- The wallet paper generators must be downloaded to the computer and must never be run online, that is, connected to the Internet. There are many possibilities of hacking, theft and scams if the necessary precautions are not taken.
