Storing our cryptocurrencies safely is the goal of cold wallets. A type of wallet that offers great security to protect our funds from theft and hacks.

CWhen we talk about security for our funds in cryptocurrencies the best option is to choose between cold wallets o cold purses. They are the perfect union between functionality and security at all times and allow you to have the peace of mind that funds can hardly be stolen. We invite you to learn about these purses and all the features that only they can offer you.

What are Cold Wallets?

The concept of wallets or cryptocurrency wallet surely you will already know it. They are digital purses or wallets where you can store and manage your money, in this case, cryptocurrencies. So the cold wallets, are those that use keys generated by a source that is not connected to the blockchain and therefore neither to the Internet. For what they are called cold purses.

This type of wallet offers a huge advantage over the others, since they play the role of a savings bank account. Where we can save money that we will not use for some time. They are the most used by users to deposit and safeguard large amounts of cryptocurrencies and offer an unsurpassed level of security.

Cold wallets as they are not constantly connected to the Internet are not prone to hacking attacks or key theft like the case of hot wallets. However, there is a risk of losing money if the hardware or paper that contains them is lost. To better understand this, let's look at the types of cold wallets that exist today.

  • Example of a cold wallet in the form of a hardware wallet
  • Example of a cold wallet in the form of a wallet paper

Characteristics of cold wallets

  1. By not staying in line with blockchain networks and the Internet, they offer protection and security against malwares and other malicious software.
  2. They allow us to store large amounts of money safely and efficiently.
  3. They do not require third parties to handle the keys and manage the cryptocurrencies; as it happens with online wallets.
  4. They have limited means of communication to maximize the security they offer.
  5. Generally they allow adding an extra layer of security through the PIN configuration of choice, it prevents a third party from using the device.
  6. The keys are generated and maintained within the same device where the wallet is used. They never come out of such a device, so they are kept safe and secure.
  7. They are compatible with most of the available operating systems.
  8. They have the ability to generate a seed that allows us to restore the keys and recover the funds.
  9. Brianda paper wallets, are not feasible to breakdown or damage to the equipment as it happens with other types of cold wallets, such as hardware wallets.

Recommendations for use

  1. As we have mentioned throughout our article, we repeatedly recommend make a written backup of the seed or keywords. Which are generated when starting the configuration of the hardware devices. This backup must be kept in a safe and protected place, since in case of loss it is the one that will allow us to recover our funds.
  2. In the case of wallets paper, they must also be guarded in a safe and protected place out of sight and access of any other person.
  3. The backing of the seed or wallets paper they should never be done on the computer or mobile devices such as phones and tablets. Image formats, PDF documents, files sent to email, or cloud services like Drive are prone to hacking and theft.
  4. Wallet paper generators they must be downloaded to the computer and must never be run online, that is, connected to the Internet. There are many possibilities of hacking, theft and scams if the necessary precautions are not taken.

Bit2Me Wallet, the security of a cold wallet without so many complications

Cold wallets are certainly the safest to protect your cryptocurrencies. However, they can be very complex to handle for people who are just entering the crypto world. They also offer backup options that you may not need if your crypto funds are used quickly to make small purchases.

In these cases, choosing a wallet with lower benefits and easier to use is completely feasible and Bit2Me Wallet it has everything for these cases. Bit2Me Wallet is a web wallet (hot) that offers you a high level of security and ease of use that no cold wallet can offer you. Our development team is focused on offering a safe product with a variety of options to make your life easier.

In addition, Bit2Me Wallet is directly integrated with our entire suite of services, making it easier for you to buy and sell cryptocurrencies that you have available in your portfolio. Simply put, Bit2Me Wallet is your best option if you want security, speed and ease of use for everyday use. You can create your account to use Bit2Me Wallet by accessing from this link.

How much do you know, cryptonuta?

Can cold wallets be used together with other means of protection?

TRUE!

The security of cold wallets is one of the highest in the crypto world, but it can be increased in different ways. Many people and companies use multiple means to extend security, such as multi-signature wallets, split storage, or encrypt their cold wallet. All this in order to further improve the security level of these wallets.

Some examples of cold wallets

There are many companies that offer different options to safeguard cryptocurrencies, and it is we as users who have the role of choosing the one that suits us best. Cold wallets are one of the first options when it comes to cryptocurrencies and their security. The first cold wallets were wallets papers. But with technological evolution came hardware wallets and software wallets capable of creating cold storage. All this in order to provide the greatest possible security to its users.

So we can say that the following types of cold wallets exist and we will name some of these options:

Hardware

These are physical devices known as hardware wallets. They are very easy to use in the form of a USB portable hard drive. They do not require an internet connection and are therefore immune to viruses and malware that can attack computers. Among its many qualities, they allow you to add an additional PIN or password so that if they are lost, they cannot be used by third parties.

Among the best known we can mention Safe deposit y Ledger.

De paper

These are the wallets that provide greater security in terms of protection from computer attacks. However, they are prone to deterioration, damage or misplacement of the paper where they are printed if they are not taken care of and protect them well. As their name indicates, they are wallets printed on paper where the public and private keys are contained, and they also indicate a QR code. This in order to facilitate the transactions that we want to carry out later.

Currently there are many websites where you can enter and generate a paper wallet. Among the main options of this type are

  1. Wallet Generator.
  2. Paper Bitcoin Wallet.

Both with a high level of security that even surpasses hardware wallets if they are used correctly.

Software

In this option we can highlight  Electrum. Electrum is a hot wallet but it has additional functionality and is the ability to create a cold wallet. The Electum cold wallet is kept offline at all times (the computer must not have Internet at any time). But at the same time, through a public key you can use a hot wallet to send and receive funds. This is because the hot wallet allows you to create unsigned transactions that you can then sign with your cold wallet and thus be able to spend your money.

A rather ingenious method but one that provides a very high level of security if it is well used.