What is Cold Wallet?

Cold wallet is a wallet that is not connected to the internet. Users must be responsible for their own private keys.

What types of Cold wallets are there?

1. Paper wallet 

A paper wallet is a type of cold wallet which is in the form of a paper which has public keys and private keys information such as a Bitcoin paper wallet etc.

2. Hardware wallet

Hardware wallets are typically a USB drive device that keeps the user’s private key. Moreover, it connects to software on computers or mobile devices. Examples include Trezor Model T wallet, Ledger Nano S wallet etc.

Cold wallet advantages

High security; it is unlikely to be hacked as private keys never come to connect with a user’s computer network.

• Ability to back up whole digital assets in hardware wallet
• Multi signatures to protect the wallet from hackers. An approval for a transaction has to be approved by a number of people.

Cold wallet disadvantages

Paper wallet 

• The complexity of use : users need to print information on paper then input data to computer or mobile phone when it is needed.
• It can easily get lost and if lost, all digital assets will be lost forever.

Hardware wallet

• Hardware wallets are more expensive than other wallets (Ledger Nano X price ranges from around $30 to $3,000)
• Can lose hardware wallet and private keys will be lost forever.
• A hardware’s service life is short.