When it comes to your Bitcoin funds, it is always worth choosing a reliable and secure crypto wallet to store your private keys. Although there are many different wallet options out there today, cold storage wallets are the ones that can protect your keys most effectively.
So, what is a Bitcoin cold storage wallet and could it be right for you?
What is a Cold Storage Wallet?
A cold storage wallet, also known as a hardware wallet, is a physical device. Hardware wallets are generally small, lightweight and have no Wi-Fi capabilities. This means they can store your private keys in an offline setting. But why is this so important?
Today, most cybercrime takes place online, be it via social media, e-mail, malicious websites or the like. This means that many threat actors depend on an internet connection to carry out their illegal actions. So the risk of remote hacks is very real when it comes to hot wallets (or software wallets). Because hot wallets often have a direct connection to the internet, your private keys can be exposed to cybercriminals.
So by isolating your private keys in an offline setting, they become drastically more secure. This is why hardware wallets are seen as more secure than software wallets. While it is not impossible to hack a cold storage wallet, it is very difficult to do so, as the attacker requires physical access to the wallet device and must bypass any protective PINs or passphrases set up by the owner.
So, with a cold storage wallet, you can safely keep your Bitcoin private keys isolated and cut off from external attacks. But what kind of Bitcoin cold storage wallets are on the market today?
Bitcoin cold storage options
There are currently two key players in the cold wallet game: Ledger and Trezor. These manufacturers each have two hardware wallet models that have become widely popular among crypto owners.
While Ledger uses closed source software and a Secure Element chip, Trezor favors open source software and therefore does not use a Secure Element chip. Ledger also uses a unique operating system known as BOLOS, which is designed to further protect your private data.
We have a piece comparing the Ledger Nano S and the Trezor Model One if you want to learn more about these products.
But things don’t stop there. KeepKey, SecUX, and ColdCard are some additional Bitcoin cold storage options to consider if you’re not particularly keen on Ledger or Trezor’s products. In fact, ColdCard is specifically designed for storing Bitcoin private keys.
All of these wallets have slightly different features and functions, but can all provide you with a safe, offline place to safely store sensitive information.
Please note that cold storage wallets are not free and can sometimes be a bit expensive. Every cold wallet has a different price, so don’t settle for a super expensive model before considering more affordable options.
Your private Bitcoin keys deserve the utmost security
With your private keys, cybercriminals can perform transactions on your behalf and drain your money. This is why it is crucial that you consider a cold storage wallet when choosing a safe place for your private Bitcoin keys.
This way you can keep your private keys isolated from the internet and from the hands of malicious actors.
