Over the past decade, Bitcoin has taken the world by storm. The leading cryptocurrency has made essential developments during that timeframe, allowing people to invest and make profit trading cryptos.
It is a known fact that cryptocurrencies as easier to use, safer, and offer much better privacy compared to the traditional fiat currencies. However, cryptocurrencies also have their disadvantages. Due to their value, Bitcoin has become the primary target of hackers. Over the past few years, millions of dollars’ worth of Bitcoin were stolen from the rightful owners. For that reason, it is crucial that cryptocurrency traders and investors protect their assets from hackers.
Wallets help keep your Bitcoin safe
Bitcoin wallets were created to help protect the cryptocurrencies. The wallets are equivalent to bank accounts, where people can deposit their Bitcoin for safekeeping. The wallets also allow people to send and receive Bitcoin.
There are different types of Bitcoin wallet, all designed to help keep a user’s funds safe. The hardware wallet (also known as the cold storage wallet) and hot wallets. The hardware wallets are electronic devices designed solely to keep cryptocurrencies secure. While cryptocurrencies can be kept safe offline, the device has to be connected to a computer or a mobile phone before the coins can be spent. The cold storage wallets are very crucial if you are serious about the security of your Bitcoin reserve.
The hot wallets, on the other hand, are wallets that run on the internet-connected devices such as a computer, tablet, or mobile phone. Unlike the cold storage wallets, the hot wallet operates online at all times.
Why cold storage wallets are right for you
Both the cold storage and hot wallets are handy for storing Bitcoin. However, the cold storage wallet is superior due to some of the features it possesses. Here are some of the reasons why you should go for a cold storage wallet.
- Impossible to hack: unlike the hot wallets, the cold storage wallets are offline devices, which means that it is impossible to hack them. The hacker would have to steal the device to gain access to your Bitcoin stash. Despite that, the cold storage wallet is usually protected with a PIN code.
- Easy to retrieve wallet after the device is stolen, damaged or lost: you will be required to create a secret backup code, which can be used to recover your Bitcoin stash in case your cold storage wallet gets stolen, damaged or lost.
- Easy to setup: another excellent feature of the cold storage wallet is the ease at which it can be setup. The device setup is not technical. Thus anyone can set them up.
Top three Bitcoin Cold Storage wallets
Ledger and Trezor are the leading manufacturers of wallet hardware in the cryptocurrency sector. The top three Bitcoin cold storage wallets are from these manufacturers. We will review the strength, weaknesses, and the cryptocurrencies they support.
Ledger’s latest hardware wallet, the Nano X is currently the best cold storage wallet available in the market. Ledger designed this device to make it easier for people to store Bitcoin and a host of other cryptocurrencies. The user interface is simple, making it easy for less technical people to use.
Setting up this device is easy and can be done via an iOS device, Android, or computer. The Bluetooth connection on the Ledger Nano X has an end-to-end encrypted for your privacy, making it virtually impossible for someone to hack your cold storage wallet.
- Compatible with mobile devices
- Supports over a thousand cryptocurrencies
- It has one of the best security features
- It requires paired apps
- It is expensive
Ledger Nano S
This is the older version of the Nano X device. The Ledger Nano S is one of the cheapest cold storage wallets currently available. It offers almost the same level of security as the Nano X. Similar to the Nano X; this device also supports Bitcoin and over a thousand other cryptocurrencies. Thus, it is ideal for people that wish to invest in a wide range of cryptocurrencies.
The Nano S cold storage wallet is shaped like a USB flash drive and can be used on mobile phones and computers. The physical buttons on this wallet increase security as they both have to be pressed before an order is confirmed. Thus, the physical security makes it impossible for hackers to access your Bitcoin wallet.
- It is affordable
- Supports Bitcoin and a thousand other cryptos
- Physical buttons increase their security.
- It doesn’t support passphrases
- It requires paired apps
Trezor T is the second generation crypto wallet developed by Bitcoin company SatoshiLab. The device is known for offering a high level of security, extra screen protection, and transaction verification.
With the Trezor T device, users get a high level of security, including a 12-word recovery seed. In case of your hardware wallet being stolen, you can quickly recover everything on a new device.
- Trezor T offers verification
- The screen protection provides extra security
- It has a recovery seed card
- It is expensive
- Doesn’t support as many cryptocurrencies as the above mentioned two.
- There is no physical button
There are other cold wallet devices, including Keep Wallet, Mycelium, Secalot, Bitbox, OpenDime, Electrum, and Cool Wallets.
Other Bitcoin wallet solutions
There are other software solutions for storing Bitcoin wallets. Here are some of the software Bitcoin wallets.
Armory is a robust cold storage wallet that is freely available for users to download. The software was designed to ensure that users can carry out transactions even when they are offline. Armory is available for Mac and Windows OS users.
The Exodus desktop wallet is another popular cold storage wallet. This wallet has advanced features, but the user interface makes it easy for anyone to use. The wallet supports Windows, Mac OS, and Linux devices.
Paper wallets are public and private keys printed together. The paper wallet is an offline wallet that is virtually impossible to hack. They are lightweight and relatively secure for storing Bitcoin.
Cold storage wallets have certain benefits over the hot wallets. They are more secure for storing Bitcoin and a host of other cryptocurrencies. Ledger Nano X, Nano S, and the Trezor T are currently the best cold storage wallets available. There are other options including, Armory, Keep Wallet, Mycelium, Secalot, Bitbox, OpenDime, Electrum, and Cool Wallets.