A cold wallet is where we put our coins and we have a physical device that is completely off the internet that we can transfer our coins to usually, it’s like in the form of what looks like a little USB drive we can plug into our pcs and we can then transfer our coins from an online wallet or hot wallet right in exchange and we can usually transfer that over to our cold wallet. So this is very good for keeping our coins safe especially if you’re going to be keeping them for long periods of time and it means that it’s safe from any hacks or anything like that that will take place on the internet.
If a hot wallet is one that needs to be connected to the internet then a cold wallet is one that does not need to be connected to the internet at all. This is a cryptocurrency wallet that is purely based offline, so it is separate from the internet. Once you’ve got your crypto in that offline wallet you can you know manage it you can move it around within that wallet, but just remember that in order for you to do anything with it in other words in order to spend it, in order to move it to another wallet or so you will need to get connected to the internet to be able to actually spend it so just bear that in mind.
An example of a cold wallet is the ledger nano x it looks like a little USB drive, it literally has one little cable that it connects to and then connects to a USB port on your pc but yeah this is completely offline and you can take your crypto from the exchange and you can decide whether you want to send it to your hardware wallet or keep it in your cold wallet. Let’s say you have come into some money you want to buy half a bitcoin but you are a bit scared about keeping it on an exchange what you can do is take that send it to your hardware wallet and pack it away for the next couple of years it remains on the wallet.
Now some people do often ask well what happens if I lose this wallet, then the seed phrase is extremely important because if anything happened to our wallet we could always recover it with the seed phrase, so when you set up one of these wallets there’s a particular phrase usually about 12 words that they’re going to give you in a particular order and that is what unlocks this wallet and it allows you to use it. So should you lose this physical wallet and suppose you registered with the ledger if anything happens to it you can get another one and you can actually recover your wallet based on that particular seed phrase.
So there’s the legend nano s and there’s the legend nano x so please go and check on the feature difference between these cold wallets. I have covered the difference between them in multiple articles you can check them for a clear understanding because what’s going to happen is some of them don’t accept certain cryptos. Some of them have a limit on the number of cryptos they can actually bring onto the device. Again do a little bit of research but what I found is that these are some of the best cold wallets out there which include Trezor wallets, and ledger.
Related: DIFFERENCE between NANO S, NANO S PLUS, and NANO X
I’m a ledger fan but it is entirely up to you to look at the other cold wallets and take a decision wisely check the features see what kind of cryptos it can handle and how many it can and then you can make your decision from there and you know what sometimes it is worth spending that little bit extra because this is the thing that is going to keep all of your cryptos safe and you want it to be something that is reliable and solid you don’t want some flimsy story that just breaks and then you know you lose all of your cryptos.
When using cold storage, the digital wallet is kept on a platform that is not connected to the internet, shielding it from intruders, hackers, and other threats that a system that is online is vulnerable to.
Paper wallets, USB wallets, and other offline computer storage devices where private keys can be kept, such as CDs, are the main examples of cold wallets.
It is absolutely essential that you move your assets into a cold storage wallet. It is the safest way to store crypto assets because it gives you complete control and security over your private keys and encryptions and guarantees you are safe from third-party liabilities.
Yes, it’s really safe as compared to other crypto wallets. Even the safest way to keep your Bitcoin or other cryptocurrencies is in a cold wallet.
You can easily recover your wallet if you have your recovery seed phrase if you lose both your hardware wallet and recovery phrase then no one can recover your crypto.
No trust wallet is not a cold wallet it’s a hot wallet because it’s connected to the internet.
An internet-connected wallet known as a “hot wallet” enables you to store, send, and receive tokens.
