Complete Guide to Cold Wallets | Ultimate Security Measures for Newbies

If you have cryptoassets, security is as important as life itself. Today, I will explain Cold Wallets without any complicated details.

What exactly is a Cold Wallet?

Simply put, it's like a vault for storing coins without an internet connection. Unlike a hot wallet (the one that's always connected), the risk of hacking is almost zero.

Important: The Wallet doesn't store coins; it manages the private key (like a password). The coins themselves are on the blockchain. As long as you have the private key, you can access those coins from anywhere.

How to Use It

Cold Wallets are not suitable for everyday transactions. They are used to securely store a large amount of coins. When you want to make a transaction, you move only the necessary amount from the Cold Wallet to the Hot Wallet, and then sell or buy from there.

Three Extremely Popular Types

Ledger Nano S/X

• About the size of a USB, extremely durable
• Supports most coins such as Bitcoin and Ethereum
• You can check it on the screen, so it's reassuring.
• Price: 150 to 200 dollars

Trezor

• It's been around since 2014, an old one.
• Setup takes 15 to 20 minutes to complete.
• A wide variety of cryptoassets such as Bitcoin, Ethereum, and Dogecoin.
• Price: 100 to 150 dollars

SafePal

• It's the one supported by Binance, which gives a sense of trust.
• Equipped with multi-layer security
• Communication via QR code without internet connection
• User-friendly interface
• Price: 50 to 100 dollars

Advantages & Disadvantages

Merit

• 🔒Security is unparalleled | Almost immune to online attacks
• 🎯Complete ownership | Not controlled by anyone
• 📦Portable | Compact and convenient

Disadvantages

• 🔧Transactions are cumbersome | More complex than Hot Wallet
• 💰Costs more｜Higher than a Soft Wallet
• ❌Cannot use DApp｜Cannot connect directly
• ⚠️Physical Deterioration | If the device is broken, it's game over.

Frequently Asked Questions

Q. Will it be hacked? A. It is rarely done, but be careful of phishing. Never show your private key to others.

Q. How much does it cost? A. 50 to 250 dollars. It varies by function.

Q. Which one should I buy? A. Ledger Nano X, Trezor Model T, and SafePal S1 are the standard options. They have a good reputation and are easy to use.

Conclusion

If you have important coins, you should buy a Cold Wallet. Considering the balance of security and convenience, it's definitely worth the investment. Just be careful of phishing scams, and you'll be able to hold long-term with peace of mind.