Bitcoin hacked. Crypto Exchanges security compromised. Crypto Exchange closes shop and absconds. Bitcoin Wallet stored on an exchange is no longer accessible simply because the key to is lost forever by the user. There are many a things that can go wrong when one is a Hodler or an investor of cryptocurrencies. The multiple risks involved cause many to lose out on accessing the returns of their hard earned money either due to the fault of a third party or their own negligence.
Bitcoin cold storage is simply the process in which Bitcoin private keys are created and stored in a secure offline ecosystem. Online computers and portals are at a greater risk and more vulnerable to hackers.
There is one solution to all this uncertainty. Its name is Cold Wallets. As mentioned in our previous blogs, a cold wallet is one of the many things that ensures the safety on one’s cryptos. Irrespective of the size of one’s portfolio, one can easy save their cryptos on to these offline cold Wallets. While there are many types of wallets, to er on the safer side, we suggest using a cold wallet.
Start With the Basic..
For further specifications, the most basic form of cold wallet is a paper wallet. It is a document on which the public and private keys are printed. This printis is done on a Bitcoin paper wallet tool online with the help of an offline printer. It also has a QR code embedded on it. This makes its easy be scanned and signed while a transaction is being made.
It’s only vulnerability is that if the paper is lost or destroyed, the user will never be able to access the address where the funds are stored.
Now we are here..
That leaves one with the option of cold, offline, hardware wallets. Before we get into its specifications, there are a few points that one needs to keep in mind.
- Always order cold or hardware wallets directly from the manufacturer or official resellers.
- Products shown on third party apps such as Ebay or Amazon could be second hand and be pre manipulated. This can result in easy hacking of a cold wallet too.
- Hackers or thieves can steal all coins from your offline cold hardware wallet anytime you have logged it into your PC for either updates or for adding new transactions.
With tough competition in the market, one is always on the lookout for the best cold wallet to store one’s cryptos.
Know More: Types Of Bitcoin Wallets You Can Use
For that regard, we have created a list of the top 5 cold wallets which can help review the product before purchasing.
The principle features of an offline wallet, is to ensure that private keys are safe and the digital signatures along with all the transactions are secure. It should manage to do all this, without the need to connect to the internet.
Trezor is one such wallet. Probably the most famous of the lot, it gives its users the best of both worlds. Famous in the crypto world as a highly secured cold storage (i.e. offline) device, it also allows the users the option of turning it into a hot, online wallet whenever one wants to spend their cryptos by simply connecting to a computer.
2. Ledger Nano S:
Ledger Nano S is one of the least expensive yet easiest ways to safeguard your cryptocurrency. Moreover, the cryptocurrency wallet is a good option when you want to invest in multiple cryptocurrencies. It supports various currencies such as bitcoin, Ethereum, Litecoin, Fido U2F, Dash, Ripple, Hello, Bitcoin Cash, POSW, VertCoin, Viacoin, ARK and many more.
Ledger has been producing hardware related to Bitcoin security from last four years.
It looks like its counterpart TREZOR and KeepKey and can be utilized on computers, even if computers contain malware. The package of Ledger Nano S includes Ledger Nano S, a lanyard, micro-USB cable, key ring and key chain, and a recovery sheet. The device costs around $98. Click here to buy Ledger Nano S.
Keepkey is a unique cryptocurrency wallet with features like security against physical and virtual theft. The device is affordable because of its low price.
You can compare Keepkey with a computer hardware that is specifically designed to possess secret keys. Due to its Hierarchical Deterministic feature, it can safely store cryptocurrencies. Different cryptocurrencies that are supported by the wallet are Dash, Ethereum, Bitcoin, Bitcoin Cash, DOGE, NMC and Litecoin.
Keepkey consists of different security measures such as private key storage, PIN Code storage, recovery sentence, and passphrases. In case your wallet is lost, you can use the recovery sentence that is generated during the setup to restore private keys. Moreover, for advanced security, you can also add a passphrase with the Keepkey recovery sentence. Although, using passphrase is only recommended for advanced users who are well-aware of the consequences of using passphrase.
However, there are some cons of the wallet such as KeepKey doesn’t have a web wallet. Therefore, it’s necessary to install software like MultiBit and Electrum to make use of the wallet. Other demerits include comparatively larger size than other wallets and less user-friendly setup.
The device is compatible with various operating systems such as Android, Linux, Windows and Mac. Click here to buy KeepKey.
4. Pi Wallet
Pi wallet is a Raspberry Pi based wallet that securely stores cryptocurrencies. With Raspberry, the wallet is quite immune to trojan attacks. Pi wallet performs transactions offline and then transfers them to the online system via a USB stick. This makes Pi wallet more dependent than other wallets. In terms of security, Pi-wallet uses Armory technology that encrypts the wallet with password. Thus, you coins are safe in case your SDHC card is lost or stolen. Demerits of the wallet are that it does not support wireless connection and its software only works on desktops.
In a nutshell, Pi-wallet is a secured cryptocurrency wallet that supports offline technology and backs up Bitcoins in SDHC card.
Pi-wallet charges a transaction fee of .0005.
Software Required to Run Pi-wallet: –
Other Essentials not included in package are: –
- Computer- Monitor, keyboard, mouse
- micro-USB cable
- HDMI cable
5. Digital Bitbox
Digital Bitbox is another secure hardware cryptocurrency wallet that can store upto five different cryptocurrencies (Ethereum Classic, Litecoin, Bitcoin, Ethereum and ERC-20 tokens) in the wallet. It has a simple backup and recovery system and manages various wallets on a single device. Its minimalist design doesn’t attract unwanted attention and the wallet is compatible with FIDO/U2F, Tail OS and Tor. Digital Bitbox uses its own software for operability. However, the hardware suffers from small deficiencies.
It is compatible with Mac, Linux, and Windows.
These are the five best cold wallets that store your cryptocurrencies securely. You can buy anyone of them as per your requirements and budget. Feel free to reach us in case of any doubts related to the product in the comments below.