The cryptocurrency boom has been going on for years and with it, there has also been a rise in the types of cryptocurrency wallets. Being able to discern the differences between various types of wallets can be quite difficult.
Most users often opt for software, cloud, cold storage, or hardware wallets. While software and cloud storage wallets are self-explanatory, it is normal to be confused between hardware and cold storage wallets.
Cold Storage Wallet
A cold storage wallet is used to keep all of your Bitcoins encrypted in a piece of hardware that resembles a wallet. The data can only be accessed with explicit authorization from the end of the cryptocurrency holder.
A hardware wallet, on the other hand, lets you store your encryption keys to access your Bitcoin. A crypto hardware wallet makes use of hardware only to let users access their data. On the other hand, cold storage wallets require both software and hardware authorization making them far more secure than traditional storage options.
Which Wallet Type Should You Choose?
Both cold storage and hardware wallets are safer than online-only storage options. But when it comes to making investments you should always go for cold storage wallets as they are more secure. They are ideal for long term holders who want to invest in cryptocurrency as an asset-building exercise. However, if you are someone who trades in cryptocurrency frequently you may not be very keen on going that route.
Regardless, cold storage options allow you to store potentially millions of dollars in a single wallet and there is no way anyone can break into it. Whether it is a business competitor or someone out to steal your cryptocurrency unless you manually authorize the wallet for access to your crypto you are safe.
So how does all of this technology work? Every cold storage wallet makes use of a hardware mechanism that plugs in via the USB. To use the device you need to input your authorization key or password. You get protection against both remote and physical attacks as cold wallets are protected physically as well.
Why Use Cold Storage Wallets?
One of the biggest reasons why you should opt for hardware wallets is that you do not need to rely on third-party ownership of funds. Most online services essentially make you store all of your cryptocurrency in the hands of third parties. But with a hardware wallet, you essentially create your own mini bank. With cryptocurrency being the hot topic on everyone’s mouths recently, you do not want to take any risks.
There are quite a few cold storage wallet providers but one of the brands that have managed to live up to expectations is ELLIPAL. They have been offering cold storage wallets for quite some time and there are plenty of options to choose from to keep your cryptocurrency safe. If you happen to be looking for a cold storage wallet that has best in class technology you should check out the ELLIPAL Titan which protects you from both physical and online attacks.