Cold wallets are completely offline and isolated from any connections. This makes cold wallets immune to any types of online hacks, completely securing your cryptocurrency. It is very important to have a cold wallet if you are a cryptocurrency investor.
Many people invest in cryptocurrency in different ways, some people like to trade, and some prefer to hold for the long term. In the cryptocurrency market, there are also many coins and tokens to choose from, whether it will be the classics like BTC, ETH, LTC, BNB, ADA, or the newer coins like AVAX, SOL, DOT, MATIC, and ATOM.
One thing in common, however, is that every currency needs a place to be stored. In the real world, we store money in our wallets, our safes, or in the bank. In the crypto world, you can store them on exchanges, hot wallets, hardware wallets, or cold wallets. They are all different in the level of security and ease of access.
Crypto security is a very serious matter. Cryptocurrency is decentralized, meaning there are no police or banks that are responsible for protecting your assets. Everyone is in charge of their own money.
This also means that if someone stole your money, no one will help you get it back. That is why it is incredibly important to secure your crypto safely with a cold wallet.
Listing from most secure to least secure
Cold Wallets - the king of security
Without further ado, we will dive into the safest way to store whatever currency you are investing in. Whether you are investing your yearly bonuses or your life savings, it is important to know that: if you take crypto seriously, you should have at least one cold wallet.
Cold wallets are devices that are designed especially to hold cryptocurrency. Cold wallets are designed to be 100% offline at all times and are isolated from any type of network or connection.
Most cryptocurrency thefts are done through online hacking. Because cold wallets are always offline and void of any connections, hackers will find it almost impossible to get anything from the cold wallet.
Many people would say that cold wallets are the most difficult to use but this is not true anymore. Modern cold wallets are designed to be very simple and quick to operate without sacrificing any security.
Very secure cold wallets like ELLIPAL are designed with ease of use in mind. It has a large touch screen and can perform transactions easily through QR code scanning. It also works with a smartphone App which makes it very convenient.
Hardware wallets are also devices that are specially designed to secure cryptocurrency. They can be seen as predecessors to the modern cold wallets because they share the same concept but the technology it has does not allow them to be as secure.
Hardware wallets are offline and isolated most of the time. The only time isolation is broken is when a transaction must be made. A hardware wallet normally requires users to connect the wallet to a PC or smartphone via Bluetooth or USB cable to finish a transaction.
The connection made during a transaction poses a big risk to the cryptocurrency inside because hackers can use that window of opportunity to steal information. Compared to Cold Wallets that are 100% offline at all times, Hardware Wallet is not the perfect security solution.
Hot wallets are the most popular type of wallet because they can be downloaded for free from App Stores and used directly on the smartphone. However, as mentioned, without network isolation like a cold wallet, there is always a risk that hackers can steal your information.
A smartphone is always online and can be connected to other devices easily through Bluetooth and WiFi, making it a very easy target for hackers. The security of hot wallets is incomparable to cold wallets.
Exchanges are used mostly for trading, not for storing assets. When you use an exchange, your assets are stored on the exchange platform and not on the device you are using. This means that your assets are not in your control. If the exchange decides to close down, your assets will also disappear.
Why Cold Wallet is the Best Security Solution
The most important factor when it comes to storing cryptocurrency is whether the crypto can be kept completely offline or not. Because cryptocurrency is decentralized and digitalized, storing it offline is the most secure and effective way.
Cold Wallets are the most secure device when it comes to securing cryptocurrency because it is always offline and cannot be connected to other devices.
Cold Wallets like ELLIPAL also make it very easy for users to operate and carry out transactions. There are also functions that allow trading, staking, investing, and buying crypto. Cold wallets nowadays are not only incredibly secure, but they are also very useful.