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 today, cold storage wallets 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 called a hardware wallet, is a physical device. Hardware wallets are typically small, lightweight, and don’t have Wi-Fi capabilities. This means they can store your private keys in an offline environment. But why is it so important?
Today, most cybercrimes happen online, whether through social media, emails, malicious websites, or otherwise. This means that many threat actors rely on an internet connection to carry out their illicit transactions. Thus, the risk of remote hacking is very real when it comes to hot wallets (or software wallets). Since hot wallets often have a direct connection to the internet, your private keys could be exposed to cybercriminals.
So, by isolating your private keys in an offline environment, they become considerably more secure. This is why hardware wallets are considered 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 and must bypass any protective PIN or passphrase put in place by the owner.
So, with a cold storage wallet, you can securely isolate your Bitcoin private keys and protect them from remote attacks. But what types 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 models of hardware wallets that have become very 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 called BOLOS, which is designed to further protect your private data.
We have an article that compares the Ledger Nano S and the Trezor Model One if you want to know more about these products.
But things don’t stop there. KeepKey, SecUX, and ColdCard are additional Bitcoin cold storage options you can consider if you’re not particularly interested in Ledger or Trezor products. In fact, ColdCard is specifically designed for storing Bitcoin private keys.
All of these wallets have slightly different features and functionality, but can all provide you with a safe, offline place to securely store your sensitive information.
Note that cold storage wallets are not free and can sometimes be a bit expensive. Each cold wallet is priced differently, so don’t settle for a super expensive model before considering more affordable options.
Your Bitcoin private keys deserve the utmost security
With your private keys, cybercriminals can perform transactions on your behalf and drain your funds. This is why it is crucial that you consider a cold storage wallet when choosing a safe place for your Bitcoin private keys.
This way you can keep your private keys isolated from the internet and from the hands of malicious actors.