Crypto Wallets 101: Cold Storage Options to Keep Your Coins Safe
Cryptocurrencies have no physical existence, but storing your coins securely needs to be a top priority for investors.
More than $1 trillion of value is stored in cryptocurrencies – and thieves have noticed. We saw just one example of that with the recent Axie Infinity (AXS) hack, where players lost $600 million.
Most of the larger exchanges (like Coinbase, Kraken, and Gemini) have invested heavily in security and will reimburse customers if funds get stolen.
But the safest way to store crypto is to use a wallet only you control on your PC or mobile phone. In other words, a wallet that requires a private key (a long password) only you know.
Taking countermeasures into your own hands is the only way to protect yourself. And there are plenty of options out there for crypto wallets.
Unlike a traditional wallet, which generally carries physical items like cash, bank cards, and other items, crypto wallets act as the storage for your cryptocurrencies. They come in two forms: hot wallets and cold wallets.
Hot wallets are cryptocurrency wallets connected to the Internet, such as Coinbase or any other exchange; this type of security is still prone to attacks. Popular hot wallet options are Exodus and Jaxx.
With cold wallets, on the other hand, your digital assets are stored offline using hardware and only a very unique private key can help you access them. This private key – usually just a long string of letters and numbers – represents your ownership to the cryptocurrencies that are present in your digital wallet.
Protecting your digital assets is a very essential component of being an investor.
So today, we’ll show you some of the leading cold wallet options on the market and their best features and benefits…
Ledger Nano X
Ledger Nano X is the second-generation hardware wallet from Ledger, one of the most respected brands on the market. It is a physical innovative wallet that is one of the best crypto hardware wallets for a reason. You can manage, exchange, and buy your crypto on the go, just as mobile users can use their wallets on their phones. That means, if you do not have your laptop around you, you can still trade effectively from your Android and iOS devices.
It has included Ledger Live software to check your balance real-time and send and receive currencies. Ledger supports over 1,800 digital coins and tokens, so you are far from limited to Bitcoin (BTC). Ledger Live also supports coin staking, in which you can also earn rewards based on your balance.
- Exchange Incorporated: Yes
- Dimensions & Weight: 72mm x 18.6mm x 11.75mm
- Material: Brushed stainless steel and plastic
- Price: US$149.00
- Supported Coins: 1,800-plus, including Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Polkadot (DOT), Litecoin (LTC), TRON (TRX), EOS (EOS), Stellar (XLM), Cardano (ADA), etc.
- Supported Platforms: Windows 8.1, iOS 9+ and Android 7+
Ledger Nano S
The Ledger Nano S is one of the best cold wallets that Ledger has introduced to date. It is one of the first hardware wallets compatible with over 1,800+ cryptocurrencies and has enough adequate storage to make wallets for a limited number of cryptocurrencies at a time.
The Ledger Nano S unit size is a petite 104mm х 58 mm х 5mm, and its weight is 16.2g. It is made of a brushed stainless steel and plastic material. It has a strong 100mAh battery. The box contains 1 hardware wallet, 1 USB cable, 1 getting started leaflet, 3 recovery sheets, 1 keychain strap. Its USB cable type is Micro-B.
- Incorporated Exchange: Yes
- Dimensions & Weight: 104mm х 58 mm х 5mm, and its weight is 16.2g.
- Material: Brushed stainless steel and plastic.
- Price: US$59.00
- Supported Coins: BTC, ETH, XRP, DOT, LTC, TRX, EOS, XLM, ADA, etc.
- Supported Platforms: Windows 8.1+, macOS 10.14+, Android 7+, and Linux.
- Integrated with software wallets Bluewallet, Electrum, Metamask, Wasabi, and Sparrow.
SecuX – XSEED Pro
With all-round compatibility X-SEED offers up to 24 recovery words per sheet, for any software or hardware wallet that uses the standard 12, 18, and 24 recovery words. Applicable for wallets such as MetaMask, Trust Wallet, Exodus, SecuX hardware wallets, Ledger, Trezor, and many more.
- This unit’s fire-proof and water-resistant 6mm durable stainless-steel sheets can resist fire and temperatures from as high as 2649 °F / 1454 °C; the laser engraved tiles with English letters will not get harmed or washed away by water.
- Unhackable – Your crypto seed phrase is backed up and stored physically offline, off the radar, and out of reach from any hackers and attackers on the internet. Suitable for all major cryptocurrencies.
Now that you see how serious protecting you crypto is and the various options that are on the market available to you today, the choice is yours.
For our full guide on how to protect your crypto, go here now.
The American Institute for Crypto Investors Research Team
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