Top cold storage crypto solutions

‍What is cryptocurrency cold storage?

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Cold storage in the context of cryptocurrency refers to keeping a reserve of cryptocurrency offline, away from internet-connected devices. This is done to enhance the security of the cryptocurrency holdings by reducing the exposure to online hacking and cyber threats. Cold storage is often used for long-term storage of cryptocurrency, where the goal is to minimize the risk of unauthorized access.

Types of cold storage:

There are various forms of cold storage, including:

• Hardware Wallets: Hardware wallets are physical devices designed specifically for storing cryptocurrency keys offline. These devices are considered highly secure because they are not connected to the internet when generating or signing transactions. Examples of hardware wallets include Ledger Nano S, Ledger Nano X, and Trezor.
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• Paper Wallets: A paper wallet is a physical document that contains a cryptocurrency address for receiving funds and a private key for spending or transferring the funds stored in that address. Paper wallets are created offline, and the printed or written information is kept in a secure location.
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• Metal Wallets: Metal wallets involve engraving or etching cryptocurrency keys onto a piece of metal. This provides durability and protection against physical damage, such as fire or water damage. Metal wallets are often used as a backup solution.

What is a hot wallet?

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A cryptocurrency hot wallet is a type of digital wallet that is connected to the internet and actively used for day-to-day transactions, trading, or other activities involving the transfer of cryptocurrencies. Hot wallets are contrasted with cold wallets, which are offline storage solutions used to secure cryptocurrency holdings for the long term.

Key features of hot wallets include:

• Online Accessibility: Hot wallets are accessible via the internet, allowing users to quickly send, receive, and trade cryptocurrencies. This accessibility makes them convenient for everyday use.
• Active Trading: Traders often use hot wallets to execute trades on cryptocurrency exchanges. The funds in a hot wallet can be readily accessed to take advantage of market opportunities.
• Software-Based: Hot wallets are typically software-based solutions that can be applications or online services. They can be accessed through web browsers or mobile apps.
• Private Keys: In hot wallets, the private keys (which are used to sign transactions and access funds) are stored on devices that are connected to the internet. This makes them potentially more susceptible to online hacking compared to cold storage solutions.

Examples of hot wallets include:

• Desktop Wallets: Software wallets installed on desktop computers.
• Mobile Wallets: Wallet applications designed for smartphones and tablets.
• Web Wallets: Online wallets accessible through web browsers.
• Exchange Wallets: Cryptocurrency exchanges often provide users with online wallets to facilitate trading on their platforms.

While hot wallets are convenient for active use, they come with security considerations. Since they are connected to the internet, there is a higher risk of exposure to online threats, such as hacking, malware, or phishing attacks. Users are advised to take security precautions, such as using two-factor authentication (2FA) and keeping only a small portion of their funds in hot wallets for daily transactions, while storing the majority in more secure cold storage solutions.

Benefits of cold storage:

Cold storage is particularly recommended for individuals and entities holding large amounts of cryptocurrency or those planning to hold their assets for an extended period. 

• Multi-signature functionality: Some hardware wallets offer multi-signature authentication, requiring multiple authorizations for transactions, further adding a layer of security.

• Direct ownership: You hold the private keys directly, giving you complete control over your crypto assets, unlike custodial exchanges where they hold the keys.
• Reduced reliance on third parties: You minimize dependence on online platforms or exchanges, which can be subject to outages, restrictions, or even closure.
• Flexibility: You can choose to connect your hardware wallet to different software platforms, maintaining control while benefiting from various applications.

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Top hardware wallet cold storage solutions:

• Ledger Nano S and Ledger Nano X:

• Features: Ledger is a popular hardware wallet manufacturer, and both the Nano S and Nano X are highly regarded. They support a wide range of cryptocurrencies, have secure elements, and come with user-friendly interfaces.
• Nano S: USB-based hardware wallet with a small screen.
• Nano X: Bluetooth-enabled with more storage capacity and a larger screen.

• Trezor Model T and Trezor One:

• Features: Trezor is another well-known hardware wallet provider. The Model T is the newer version with a touchscreen, while the Trezor One is the original model.
• Model T: Features a color touchscreen and supports a variety of cryptocurrencies.
• Trezor One: Compact and offers strong security features.

NGRAVE ZERO:

• Features: the NGRAVE ZERO is a tamper-proof, EAL7-certified crypto cold storage wallet with biometric and light sensors for fingerprint & QR scanning. It is “Air-gapped” which means it uses only QR codes - no internet connection.
• GRAPHENE is NGRAVE’s metal physical storage card.
• LIQUID is NGRAVE’S app. 

Source: https://ngrave.io/en/zero 

Other considerations when choosing a hardware wallet

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Budget: Hardware wallets range in price from around $50 to $200+ depending on features and security certifications.

Technical comfort: Some wallets are more user-friendly than others, while some cater to tech-savvy enthusiasts with advanced features.

Desired features: Consider factors like Bluetooth connectivity, mobile app availability, touchscreen interface, air-gapped functionality, and supported cryptocurrencies.

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