Know Cold Wallet Crypto and Its Kinds
Do you know where crypto assets are stored? Similar to physical assets stored in physical or digital storage, this currency also requires storage to store it. This storage is called a wallet. There are many types of wallets that you can use to store crypto assets. Also, read the article Want to Use Hot Wallet? Understand These Things First. Each offers different working mechanisms and advantages. Starting from the most common, this time we will focus on discussing cold wallets. Listen carefully!
What is Cold Wallet?
Cold Wallet or cold storage is a wallet in the form of hardware to store crypto assets that do not need to be connected to an internet connection. This wallet is considered more secure because it is offline. Even so, you still have to connect it to the internet if you want to make a transaction. This is considered to minimize the risk of hacking your wallet so that the assets stored in it are safe from theft.
Types of Cold Wallets
A hardware wallet is a physical device that is usually in the form of a USB stick to store private keys. Examples are Trezor, Ledger Nano S, and Keepkey which support transactions of various crypto assets such as Bitcoin, Ethereum, and so on.
What if this USB wallet is lost? Don’t worry, this wallet uses a two-factor authentication system so you can access your wallet again with the help of a password.
Another option for those of you who want to use a Cold Wallet is Paper Wallet. Unlike a hardware wallet in the form of a USB, a paper wallet is a paper containing your public address and private key information. This paper wallet will then utilize software that generates a random public address and private key in the form of a QR code on a piece of paper. Well, don’t forget to store the paper in a safe place so that other people don’t have access to your private key. You can also back up by making a copy of your paper wallet and then saving the copy in a separate place.
After reading the explanation above, which cold wallet are you interested in using? Can you write it in the comments? Continue to follow our articles so that you understand more about crypto. Don’t forget to visit the Litedex, Instagram, Twitter, YouTube, and TikTok websites to keep getting updated information from us.