Cold Wallet: A Bitcoin Hardware Wallet Review
The Cold Wallet is a Bitcoin hardware wallet with a female USB-C connector and on-device backups via a microSD card. However, it is a bit more expensive than a hot wallet. In this article, we’ll take a closer look at the cold card and how it compares to the hot wallet.
Cold Wallet is a Bitcoin hardware wallet:
A cold wallet is an excellent option to store your Bitcoin, Ethereum, or another cryptocurrency on a hard drive. Cold wallets do not require a connection to the internet and thus are more secure. You can store your funds in these wallets for a long time without any worry. Some cold wallets include paper wallets, hardware wallets, and even software. Some options require installing software, while others require a web-based application.
Hardware wallets have several advantages, but the cost may be prohibitive for some users. Some of these wallets are designed to be connected to the internet and can be connected to multiple exchanges and decentralized applications. However, reading the fine print and determining if the hardware wallet is compatible with your cryptocurrency is still necessary.
It has a female USB-C connector:
Unlike its male counterpart, the Cold Wallet features a female USB-C connector, the same connector used by Trezor, KeepKey, and Ledger. This means it can only connect to your computer if powered down. However, if you need to connect it to other devices, you can purchase a male-female USB-C cable available at most computer stores.
USB-C, also known as Type-C, is the latest USB connector. This new type of connector is reversible and works on any device with one. A USB-C connector allows you to connect to devices with different operating systems.
It offers on-device backups via microSD cards:
Cold Wallet allows users to make on-device backups via a microSD card. The process is simple and secure. The backup file is encrypted using AES-256 and 7z compression. It also uses Diffie-Hellman key exchange. To create a backup, you need a blank MicroSD card, a PIN, and seed words.
Cold Wallet is open-source, affordable, and secure. The software is written in MicroPython, allowing for changes and updates. It also supports BIP39 passphrases and has a dedicated security chip for storing the private key. It supports multiple sub-accounts and independent payment addresses. It understands transactions and supports the Partially Signed Bitcoin Transaction Format (BTC-TF).
Cold Wallet can back up your wallet’s private keys on your device. By using air-gapped technology, it avoids the problem of malware affecting the device storing your private keys. Besides, the cold card works with any Bitcoin software that supports the BIP174 standard.
It is more expensive than a hot wallet:
A hot wallet is accessible online all the time, whereas a cold wallet is stored offline. This makes it more vulnerable to cyberattacks. Hackers can exploit software vulnerabilities or install malware to access the system. Also, web wallets hosted by crypto exchanges can be targets for thieves. On the other hand, a cold wallet is more secure because the digital keys are stored offline. There are many crypto wallets, including hardware and paper wallets.
A cold wallet costs between $50 and $200. It is essential to choose the correct one for your needs. Cold wallets are best for long-term holdings, while hot wallets are better for short-term trading. You can use a hot wallet if you are not sold on cryptocurrency.
It is unhackable:
A cold wallet is an extra layer of security for digital currency transactions. While standard digital wallets are vulnerable to attack, cold wallets are unhackable. Several companies are selling cold wallets. However, it is essential to research the cold wallet you intend to use. The best cold wallets have no vulnerabilities. Veteran crypto traders swear by the security of cold wallets.
Researchers have tested the Ledger cold wallet. It was found that hackers can only access the private key if they manage to steal it or get their hands on the wallet. The company has also fixed vulnerabilities in hardware that make it more secure. Keeping a cold wallet away from your computer or exchange is still essential.