Cold wallets are one of the safest storage wallets on the Crypto market. So how many cold wallets are on the market, so which wallet is the best to protect your crypto assets?
Table of contents
- What is cold wallet?
- Cold wallet classification
- Pros and cons of cold wallets
- Compare cold wallets and hot wallets
- Who is suitable to use cold wallet
- Top 3 most popular cold wallets in Crypto market
1. What is cold wallet?
A cold wallet is a device specially designed for users to securely store and protect their private keys. Inside the cold wallet there is always a security chip (Secure Element) where the private key is stored.
The private key can be understood as a key that can unlock the safe, lock the door of your house. If anyone gets the private key, they can take all your money in a split second. The security chip will help keep the private key as safe as possible for the user.
Many people confuse the concept of a cold wallet, thinking that all money will be stored in a cold wallet, so there is a risk that they will lose everything. However, not so, all your assets are stored on the blockchain, cold wallets only store private keys to access your assets.
2. Cold wallet classification
Hardware wallet
Hardware wallets are the most commonly used cold wallets in the crypto market. This type of wallet has a form similar to a USB, used to store private keys securely. Hardware wallets allow you to set a password or PIN to be as secure as possible in case of theft or loss.
Paper wallet
Paper cold wallets (paper wallets) are one of the ways to protect yourself from cryptocurrency theft attacks. A paper wallet is simply a piece of paper, printed with the wallet address, private key, and QR code for transactions. However, paper wallets are easily damaged, lost, and crumpled. Therefore, some investors have protected their paper wallets by extruding plastic/hardening and storing them in a safe, a bank or a reputable and safe place so that they won't be lost.
3. Pros and cons of cold wallets
Advantages of cold wallets
Some outstanding advantages of cold wallets:
- Rated as the safest wallet by investors today
- The private key stored on the cold wallet is always offline, only connecting to the internet when the user needs it.
- There is little risk of being infected by a virus.
- No KYC required like some hot wallets.
Disadvantages of cold wallets
- The disadvantages of cold wallets exist besides the advantages:
- The price ranges from 2-3 million for a cold wallet -> Quite high compared to the common ground.
- Bulky and more prone to loss and theft than hot wallets (soft wallets).
- No history of frequently traded crypto assets
4. Compare cold wallets and hot wallets
What is a hot wallet?
Hot wallet (soft wallet, online wallet) is a free application/extension for users to store coin/token, cryptocurrency, NFT,... This type of wallet is always connected to the internet, so users transactions can be made faster and more convenient.
The common feature of hot wallets is that they store quite a few different cryptocurrencies and are free. Some hot wallets are used such as: MetaMask, Trust Wallet, BTCPay, Blockchain,...
Compare cold wallets and hot wallets
Safety: Cold wallets are considered to be much more secure than hot wallets. Since cold wallets are stored in a device that is separate from the internet, hot wallets are vulnerable to virus problems/network attacks.
Transaction speed: Cold wallet transactions will take longer because many steps are needed. With hot wallet, only need internet to be able to trade.
Coins that support Cold Wallet support quite a few coins. But the hot wallet because it is developed by many major exchanges, it supports many types of coins for users to easily trade.
Coin Reserve: You can store as much as you want for both wallets. But you should store coins in cold wallets more because it is safer. With hot wallets, you only need to reserve just enough for transactions.
Selling price You will have to spend money to buy cold wallets and hot wallets, you can use it for free.
Account Verification (KYC) Cold wallets do not require KYC, while hot wallets you need to verify your identity with your ID card/CCCD or Passport.
5. Who is suitable to use cold wallet?
If you are a trader who often uses assets to trade in the market, hot wallets will help you more. But for some long-term investors, cold wallets are a pretty safe crypto haven for you. So for long-term holders, which cold wallet will suit them:
Who are hardware wallets suitable for?
Hardware wallets will be suitable for investors who need to store a sizable amount of cryptocurrency for a long period of time. If you have 5000 USD, then choosing to buy a cold wallet (hard wallet) to securely store your assets will be necessary because if you store it on a hot wallet, it is very easy to risk your account being hacked.
However, if the amount of cryptocurrency you are holding is less than 200 USD, then storing it on a cold wallet is not necessary. It doesn't make any sense to buy a $100 wallet to protect that same amount of cryptocurrency.
Who is the paper wallet suitable for?
Paper cold wallets (paper wallets) will be more suitable for investors who want to hold for a long time and almost do not sell. With offline operation mode, paper wallets will be the absolute safe storage for these holders. However, you need to store them carefully to avoid being torn or lost.
6. Top 3 most popular cold wallets in Crypto market
Ledger Nano X
Ledger Nano X is a cold wallet product of Unicorn company. Ledger wallet has almost absolute security, with the support of 2 chips at the same time instead of just 1 like some current hardware wallets.
In addition, Ledger Nano X cold wallet also allows storing more than 1500 cryptocurrencies, multiple e-wallets at the same time and is updated every day for the convenience of users buying and selling. Anytime you want to trade, you can use a USB-C cable to connect this cold wallet to your computer. Besides, you can also use the wallet with your smartphone.
The disadvantage of the Ledger Nano X cold wallet is the high cost.
Trezor
Trezor Wallet is one of the first cold wallets on the Crypto market, developed by a seasoned team, including SatoshiLabs. Therefore, the shape of Trezor is quite simple, consisting of only 1 OLED screen and supports 8 different cryptocurrencies.
In terms of connectivity, users can use Trezor cold wallet through Android devices and with supporting applications such as Trezor Wallet, Mycelium and Multibit HD.
Trezor currently supports nearly 1400 different cryptocurrencies. Trezor Ethereum can store all ERC-20 standard tokens. This is a good sign as there are thousands of different ERC-20 tokens on the market right now.
SafePal S1
SafePal S1 cold wallet is the first hardware wallet product invested and supported by Binance exchange. The advantage of SafePal cold wallet is safety, convenience and security that is EAL, 5+ certified. This is a certificate used to evaluate the security level of the wallet.
In addition, SafePal S1 supports more than 23 different blockchains, equivalent to storing more than 20 thousand different cryptocurrencies.
Table of contents
- What is cold wallet?
- Cold wallet classification
- Pros and cons of cold wallets
- Compare cold wallets and hot wallets
- Who is suitable to use cold wallet
- Top 3 most popular cold wallets in Crypto market
1. What is cold wallet?
A cold wallet is a device specially designed for users to securely store and protect their private keys. Inside the cold wallet there is always a security chip (Secure Element) where the private key is stored.
The private key can be understood as a key that can unlock the safe, lock the door of your house. If anyone gets the private key, they can take all your money in a split second. The security chip will help keep the private key as safe as possible for the user.
Many people confuse the concept of a cold wallet, thinking that all money will be stored in a cold wallet, so there is a risk that they will lose everything. However, not so, all your assets are stored on the blockchain, cold wallets only store private keys to access your assets.
2. Cold wallet classification
Hardware wallet
Hardware wallets are the most commonly used cold wallets in the crypto market. This type of wallet has a form similar to a USB, used to store private keys securely. Hardware wallets allow you to set a password or PIN to be as secure as possible in case of theft or loss.
Paper wallet
Paper cold wallets (paper wallets) are one of the ways to protect yourself from cryptocurrency theft attacks. A paper wallet is simply a piece of paper, printed with the wallet address, private key, and QR code for transactions. However, paper wallets are easily damaged, lost, and crumpled. Therefore, some investors have protected their paper wallets by extruding plastic/hardening and storing them in a safe, a bank or a reputable and safe place so that they won't be lost.
3. Pros and cons of cold wallets
Advantages of cold wallets
Some outstanding advantages of cold wallets:
- Rated as the safest wallet by investors today
- The private key stored on the cold wallet is always offline, only connecting to the internet when the user needs it.
- There is little risk of being infected by a virus.
- No KYC required like some hot wallets.
Disadvantages of cold wallets
- The disadvantages of cold wallets exist besides the advantages:
- The price ranges from 2-3 million for a cold wallet -> Quite high compared to the common ground.
- Bulky and more prone to loss and theft than hot wallets (soft wallets).
- No history of frequently traded crypto assets
4. Compare cold wallets and hot wallets
What is a hot wallet?
Hot wallet (soft wallet, online wallet) is a free application/extension for users to store coin/token, cryptocurrency, NFT,... This type of wallet is always connected to the internet, so users transactions can be made faster and more convenient.
The common feature of hot wallets is that they store quite a few different cryptocurrencies and are free. Some hot wallets are used such as: MetaMask, Trust Wallet, BTCPay, Blockchain,...
Compare cold wallets and hot wallets
Safety: Cold wallets are considered to be much more secure than hot wallets. Since cold wallets are stored in a device that is separate from the internet, hot wallets are vulnerable to virus problems/network attacks.
Transaction speed: Cold wallet transactions will take longer because many steps are needed. With hot wallet, only need internet to be able to trade.
Coins that support Cold Wallet support quite a few coins. But the hot wallet because it is developed by many major exchanges, it supports many types of coins for users to easily trade.
Coin Reserve: You can store as much as you want for both wallets. But you should store coins in cold wallets more because it is safer. With hot wallets, you only need to reserve just enough for transactions.
Selling price You will have to spend money to buy cold wallets and hot wallets, you can use it for free.
Account Verification (KYC) Cold wallets do not require KYC, while hot wallets you need to verify your identity with your ID card/CCCD or Passport.
5. Who is suitable to use cold wallet?
If you are a trader who often uses assets to trade in the market, hot wallets will help you more. But for some long-term investors, cold wallets are a pretty safe crypto haven for you. So for long-term holders, which cold wallet will suit them:
Who are hardware wallets suitable for?
Hardware wallets will be suitable for investors who need to store a sizable amount of cryptocurrency for a long period of time. If you have 5000 USD, then choosing to buy a cold wallet (hard wallet) to securely store your assets will be necessary because if you store it on a hot wallet, it is very easy to risk your account being hacked.
However, if the amount of cryptocurrency you are holding is less than 200 USD, then storing it on a cold wallet is not necessary. It doesn't make any sense to buy a $100 wallet to protect that same amount of cryptocurrency.
Who is the paper wallet suitable for?
Paper cold wallets (paper wallets) will be more suitable for investors who want to hold for a long time and almost do not sell. With offline operation mode, paper wallets will be the absolute safe storage for these holders. However, you need to store them carefully to avoid being torn or lost.
6. Top 3 most popular cold wallets in Crypto market
Ledger Nano X
Ledger Nano X is a cold wallet product of Unicorn company. Ledger wallet has almost absolute security, with the support of 2 chips at the same time instead of just 1 like some current hardware wallets.
In addition, Ledger Nano X cold wallet also allows storing more than 1500 cryptocurrencies, multiple e-wallets at the same time and is updated every day for the convenience of users buying and selling. Anytime you want to trade, you can use a USB-C cable to connect this cold wallet to your computer. Besides, you can also use the wallet with your smartphone.
The disadvantage of the Ledger Nano X cold wallet is the high cost.
Trezor
Trezor Wallet is one of the first cold wallets on the Crypto market, developed by a seasoned team, including SatoshiLabs. Therefore, the shape of Trezor is quite simple, consisting of only 1 OLED screen and supports 8 different cryptocurrencies.
In terms of connectivity, users can use Trezor cold wallet through Android devices and with supporting applications such as Trezor Wallet, Mycelium and Multibit HD.
Trezor currently supports nearly 1400 different cryptocurrencies. Trezor Ethereum can store all ERC-20 standard tokens. This is a good sign as there are thousands of different ERC-20 tokens on the market right now.
SafePal S1
SafePal S1 cold wallet is the first hardware wallet product invested and supported by Binance exchange. The advantage of SafePal cold wallet is safety, convenience and security that is EAL, 5+ certified. This is a certificate used to evaluate the security level of the wallet.
In addition, SafePal S1 supports more than 23 different blockchains, equivalent to storing more than 20 thousand different cryptocurrencies.
