Cold wallets are regarded as the best way to store digital assets. The primary reason for this is due to the fact that the important parameters that are used to access such wallets do not categorically interact with the internet. In essence, this method keeps the key details of such wallets away from the prying eyes of remote thieves and hackers that specialize in stealing funds that are stored in digital wallets. These top 5 best crypto cold storage devices are worth considering, especially when a huge amount of funds are involved.
Cryptocurrency exchanges and similar platforms that enable crypto users to trade and transact on the internet are usually primary targets for hackers. The evidence of this statement is in the history of exchanges that have been hacked during the past couple of years.
Usually, these platforms store user’s assets and enable them access to their assets for purposes of transactions and trading as the case may be. For the platforms that have been hacked before, reports have it that it was the hot wallets (online wallets) that were breached or hacked into.
There are a number of cold storage devices that exist today, some are more popular than others based on their functionality, convenience of use, and proven security. The top 5 best crypto cold storage devices include the following:
5. Bitfi DMA 2
Bitfi supports a number of cryptocurrencies which include Bitcoin, Monero, Litecoin, Ethereum, NEO, and ERC-20 tokens. Physically, it is a small rectangular device with a large screen that can be carried about easily like a mobile phone.
The private keys for Bitfi are not stored anywhere at all. This has led some users to think that the gadget does not make use of private keys, but that is not the case. What happens is that anytime a user enters their passphrase, an algorithm calculates the private key automatically and gives access to the wallet.
Therefore, even if the device is stolen, the thief cannot access the wallet without the user’s passphrase. In the case of a lost device, a user can simply purchase another Bitfi gadget and use his/her original passphrase to access the same wallet.
Coldcard is a Bitcoin hardware wallet that is more suitable for experienced programmers who understand blockchain programming. The device is secured with a crypto-security chip, and it accepts MicroSD for easy backup.
Coldcard is simply compatible with computer and smartphone operating systems without the need to install any special app. It functions as an external storage device, and transactions are carried out by dragging files in and out of the wallet.
Coldcard allows users to create a secondary wallet, enabling the holder to have an extra wallet on the same device. This can come in handy when the holder is under duress or in a situation where he/she is forced to reveal the wallet. The secondary wallet can be revealed, while the primary wallet remains intact.
KeepKey is a popular crypto cold wallet that is optimized with generating and storing an unlimited number of keys. The wallet currently supports a total of 54 coins, which includes Bitcoin, Ethereum, Litecoin, Dash, Dogecoin, Bitcoin Gold and several ERC-20 tokens.
Compared to most of the other hardware wallets, KeepKey is a bit on the big side and cannot conveniently fit into a regular pocket. It is suitable for beginners who may have the tendency of dropping or forgetting their gadgets more easily.
Trezor is one of the most popular cold wallet brands in the industry today. There are currently two versions of Trezor in the market today. Trezor One was designed to store multiple cryptocurrencies offline in an easy-to-use format with 2 buttons and a screen. The Model T is an upgrade of the Trezor One, getting rid of the 2 buttons and becoming touchscreen with full color.
The Trezor Model T supports up to 700 different coins at the same time, making it a lot more versatile and adaptable for many cryptocurrency users.
1. Ledger Nano S
The Ledger wallet is a portable USB device that can be plugged into a computer for wallet access. Interaction with the device is through a desktop app, “Ledger Live”.
The device supports over 1,000 coins and tokens including Bitcoin, Ethereum, Ethereum Classic, Litecoin, Ripple, Dogecoin, Zcash, Dash, as well as many ERC-20 tokens. It can also interact with online wallets such as MyEtherWallet, Mycelium, and Electrum.
The tap Cold Storage System
The tap platform, which allows users to store, trade and spend their satoshis and other cryptocurrencies does not expose customer assets to the kind of risk that is rampant in the industry today.
Customer’s digital assets with tap are under cold storage behind a multisignature wallet. Even during transactions, customer funds are never exposed. The transactions are run on hot wallets, after which appropriate adjustments are made on the customer’s wallets in cold storage. This is to prioritise security of customer funds.
It doesn’t stop there. Even the cold storage is insured for up to $100M with BitGo which is in partnership with tap.
In the crypto world, security is of utmost concern, and using the top 5 best crypto cold storage devices is a positive step towards ensuring peace of mind and a protected portfolio.