Security is one of the most important elements of being a crypto investor, and crypto cold wallets are vital here. A whopping $1.7 billion worth of cryptocurrency was stolen in 2023. While this is a huge amount, it’s actually a drop from the previous two years.
You should take any measures you can to keep your digital assets safe. There are various ways to store crypto, so you need to make sure you’re using a safe option. Cold wallets are widely considered the most secure solution.
Let’s take a look at cold wallets and why they’re so important in the crypto space.
The Importance of Keeping Your Crypto Secure
As the popularity of crypto has increased, so too have the risks associated with it. Many people enter the world of crypto with little understanding. It can be very exciting, so a lot of people end up getting ahead of themselves.
This is an industry where knowledge is everything. You need to make sure you understand what you’re doing at all times, or you could end up losing a lot of money.
Hacks and scams have become a serious problem, and it’s easy for those who are new to crypto to fall victim to them. Taking the proper precautions will help you keep your funds secure.
One of the biggest factors that will affect the safety of your digital currency is how you store it.
When you purchase crypto on an exchange, it will go straight to your custodial wallet on that platform. If you’re going to hold this crypto for a while, you probably shouldn’t keep it here. Exchanges can be vulnerable to hacks, and some have run into other issues that have resulted in investors losing access to their funds.
You can transfer your crypto to a hot wallet to keep it protected. These are digital wallets that operate as browser extensions or smartphone apps. While these are far more secure than exchanges, the safest option is definitely a cold wallet.
What Are Crypto Cold Wallets?
A cold wallet (sometimes called a “hard wallet” or “hardware wallet”) is a physical device that you can use to keep your crypto safe. There are various options available, and all are typically considered highly secure.
It’s worth noting that these devices don’t actually store your crypto as this remains on the blockchain. Instead, they store your private keys which give you access to your crypto.
You need to connect your cold wallet to a computer to make any transactions. The fact that your private keys are stored offline makes these more secure than hot wallets.
They’re far more resistant to online threats like malware or spyware. Additionally, they’re isolated from smart contracts which protects them from malicious approvals.
If you have a large amount of crypto that you want to store for a long time, it’s highly recommended that you use a cold wallet. For extra security, you could even use more than one.
The Best Crypto Cold Wallets
There are various manufacturers and models, so you may not know where to begin with cold wallets. It’s important to note that there’s no specific wallet that’s best. It comes down to the needs of the individual.
You should compare the options available to find one that’s right for you. There are certain key factors you should consider such as security, supported coins, and price.
Some of the most popular choices include:
- Tresor Safe 3
- NGRAVE ZERO
- Cypherock
- BC Vault
- ELLIPAL Titan
- Ledger Nano S Plus
There are plenty of other models available from these manufacturers and others. Be sure to do your research so you can make the best choice to keep your assets secure.
Always Keep Your Crypto Safe
You should never underestimate the importance of security in the crypto space. Make sure you always take suitable measures to keep your assets secure. Even a small mistake could result in a serious loss of funds, so you should always understand the decisions you make and do appropriate research before making any investments.
Crypto cold wallets are ideal for storing your cryptocurrency and keeping it safe. If you’re still not sure about investing in crypto, check out this guide to see if it’s right for you.