Carefully considering which crypto wallet to buy for storing your cryptocurrencies is as important a decision as thinking about and investing in crypto.
An individual or investor puts in their money to obtain gains from cryptocurrencies as an investment, making it mandatory to keep those safe. However, given how prone the internet is to cyber-attacks and hacking, storing crypto in an offline wallet is alternatively a better option.
In the article, we’ll briefly explain what a crypto wallet is, the different kinds of cryptocurrency wallets one can choose from, and finally, the list of best cold crypto wallets that you may consider while making a purchase for the device. Read till the end to learn more!
What Is A Cryptocurrency Wallet?
A cryptocurrency wallet is a reliable digital wallet used to store, send, and receive digital currencies. If you wish to use cryptocurrency, you’ll require a crypto wallet. There are several kinds of cryptocurrency wallets. While some are built to store only a single cryptocurrency, other multi-cryptocurrency wallets are available in the market.
The way crypto wallets work is pretty simple. Three components are part of the functionality of cryptocurrency wallets: Private Keys, Public Keys, and Wallet Addresses. These can be briefly explained as follows:
- The private keys are crucial for the authorization and authentication of crypto fund transfers and must not be shared publicly under any circumstances.
- The public keys are a string of cryptographic code that acts as an address to receive cryptocurrencies.
- And the wallet address is an abbreviation of the cryptographic code, shortened into an alphanumeric string or QR Code.
Besides understanding the meaning of crypto wallets and how they function, another thing to consider is the types of cryptocurrency wallets available at the disposal of crypto investors and traders.
There are two kinds of crypto wallets: Hot Wallets and Cold Wallets. They have advantages and disadvantages. Hot wallets are at the forefront when choosing web-based and mobile wallets usually provided by crypto exchange platforms. Trust Wallet and MetaMask are two of the most popular crypto hot wallets.
On the other hand, crypto cold wallets include cold storage, hardware wallets and offline storage. These provide greater security relative to hot wallets.
What Is A Crypto Cold Storage?
Crypto cold storage is a cold wallet used to store cryptocurrency offline. In cold crypto storage, a digital wallet is reserved on a platform that is not connected to the internet.
A wallet connected to the internet is susceptible to cyber hacks, unauthorized access and other discrepancies that put cryptocurrencies at risk.
What Are The Advantages Of Using Cold Crypto Wallets?
Cold wallets have clear points of advantage over hot wallets on security and safety grounds. But, there are other things too which we’ll shortly mention. For example, while hot crypto wallets provide high accessibility of funds, they are connected to the internet and, therefore, susceptible to phishing and hacking.
Following are the advantages of using cold wallets for cryptocurrencies:
- Cold crypto wallets function independently of an Internet connection. However, since most thefts occur on the Internet, cold wallets are protected against them.
- The cold wallets for crypto allow users to store a wide variety of cryptocurrencies. Therefore, the users get the liberty to invest in multiple cryptocurrencies and rest assured that these would remain safe.
- The feature of setting up a PIN or a security code to use the device strengthens the security feature of crypto cold wallets.
- Lastly, the cold wallets for crypto are mostly portable and have impressive designs. Therefore, they can be carried around without difficulty.
List Of Cold Crypto Wallets
Now that we know how and why cold wallets are more suitable for storing cryptocurrencies than hot wallets, let’s check out the list of best cold wallets. You may refer to this list for buying one if you have or plan to invest in cryptocurrencies. Given below is the list of the best cold crypto wallet in 2022:
1. Ledger Nano X
Ledger Nano X is a physical, second-generation, and best multi-cryptocurrency wallet from Ledger, allowing the user to manage, exchange and buy cryptocurrencies on the go.
The device has features that enable trading effectively with any Android and iOS device without the need for laptops or computers. In addition, the in-built Ledger Live software helps to check balances and send and receive currencies.
Since this cold crypto wallet is mobile and computer friendly, supports more than five thousand cryptocurrencies, and provides storage for 3-20 different applications, Ledger Nano X is one of the best cold crypto wallets for 2022.
2. Trezor Model T
Trezor Model T is the best cold crypto wallet for those looking to manage their crypto and easily control their crypto funds effectively. In addition, it allows users to access third-party exchanges such as Changelly and CoinSwitch.
The best part about this cold crypto wallet is that it offers unlimited wallet storage, supports more than eighteen hundred cryptocurrencies, its authentication is network-isolated, and it provides ultra-secure offline storage.
3. Ledger Nano S
Next on the list is Ledger Nano S by Ledger, the same company that created Ledger Nano X. This is one of the first cold crypto wallets introduced in the market compatible with 1800+ cryptocurrencies.
In addition, it is a simple and powerful device that is easy to use with USB-Style hardware. And enables the user to set a 20-digit recovery password. These features make the Ledger Nano S a good option among the best cold crypto wallets list.
4. SafePal S1
SafePal S1 is one of the most recommended cold crypto wallets by experts for beginners. The device was launched in 2019, is compatible with nineteen blockchain networks and supports more than ten thousand crypto tokens.
It is one of the best cold crypto wallets, providing crypto customers with simple and safe crypto management solutions. In addition to its features, the device’s design is also impressive.
The only major constraint with SafePal S1 is that it supports a limited number of crypto coins. But, apart from that, the price, quality, and multiple layers of security sensors that it provides make it a good contender amongst the other best cold crypto wallets in 2022.
5. CoolWallet Pro
The final option on the list of cold crypto wallets for 2022 is CoolWater Pro by CoolBitX. It is the best portable cold wallet and easily connects to a device via an encrypted Bluetooth connection. In addition, the device does not require an internet connection making it a safe crypto wallet option.
CoolWallet Pro offers easy interaction with DeFi, dApps and NFTs (Non-Fungible Token). Also, it allows the users to stake crypto through their wallets to earn rewards. The device also enables tracking, viewing and exchanging crypto from the users’ cold wallet storage.
The body of the device is tamper-free and water-resistant. Moreover, the battery backup of the device is quite good too. These features make CoolWater Pro a great buy for a cold crypto wallet.
FAQs – Crypto Cold Wallets
Q.1 What Is The Best Cold Storage Crypto Wallet?
According to experts, if one wants to go for the best cold crypto wallet in 2022, they may choose SafePal. It is the first hardware wallet Binance invested in, and it supports more than ten thousand cryptocurrencies, including ETH, BTC, LTH, and BNB.
Q.2 What Is The Best Crypto Wallet For Beginners?
The best online crypto wallet for beginners is Coinbase. It supports more than five thousand crypto coins and crypto-tokens. However, it isn’t compatible with hardware wallets. On the other hand, the best offline crypto wallet for beginners is Ledger Nano X. The device costs around $200 and supports more than five hundred cryptocurrencies.
Q.3 What Is The Point Of A Crypto Wallet?
The point of cryptocurrency wallets is to store the cryptocurrencies purchased. Cold storage wallets are better than online crypto wallets because they provide greater security and safety for digital assets.
Key Takeaway On Crypto Cold Wallets
Crypto cold wallets are unquestionably better than traditional online and offline cryptocurrency wallets. This is because the security and safety they provide to the crypto coins and tokens are relatively better. In addition, not being directly connected to the internet adds to its advantage and protects cryptocurrencies from potential cyber-attacks. However, there are several other options available in the market, and therefore one must consider all the options before investing in an offline crypto wallet.
- Cold Crypto Wallet
- Cold Wallet
- Crypto Coin
- Crypto Token
- Crypto Wallet
- Hot Crypto Wallet
- Hot Wallet
Author: Nitisha Lal
Nitisha Lal is a writer enthusiastic and curious to learn new things. Currently, she writes about the latest developments in technology, particularly around Web3 and the Metaverse. She enjoys nature walks, capturing the world around her on the phone, or reading books when away from work.