Best Cold Wallets for Long-Term Crypto Storage

As the growth of the crypto space continues we see an increase in the importance of secure digital asset storage. Though exchanges and online wallets may be convenient that also brings a risk which includes hacking, loss from exchange failure, and security leaks. For the serious term player in crypto, cold wallets stand out as the best option.

Cold wallets enable you to keep your crypto out of the digital environment, at a distance from internet risks. For the long term investor, the high value holder, or the person looking to secure assets over a very long time  which cold wallet to choose is a very important issue. In this piece we look at what cold wallets are, why they do matter, and which are the best cold wallets for the long term storage of crypto, presented in a down to earth and practical way.

What Is a Cold Wallet?

A cold wallet is what we term a physical cryptocurrency wallet which keeps private keys out of the digital space. As opposed to hot wallets which are on the internet, cold wallets we mostly keep off the web which in turn makes them very hard to attack online.

Cold wallets are in the form of hardware or paper. It is the former which is most popular for their security and convenience.

By having private keys offline, cold wallets give users full control of their funds and also greatly reduce the risk of theft or unauthorized access.

Why do Cold Wallets out perform in the long term storage.

In the long term crypto storage means a high degree of security. Over time exchanges may be hacked into, companies may shut down, or regulations may change. Cold wallets which put the user in full control of their coins eliminate many of these issues.

Cold wallets are ideal for: 

• Long-term investors (HODLers)
• Storing large crypto holdings
• Protecting assets from hacks and malware
• Keeping funds safe during market downturns

For all that which you put into crypto for a term of years a cold wallet is a must.

Types of Cold Wallets

Before you pick out a specific product see to it that you are familiar with the main types of cold wallets.

Hardware Wallets

Hardware wallets are physical machines that are designed for secure offline storage of private keys. They connect to a computer or mobile device at the time of a transaction.

Paper Wallets

Paper based wallets which consist of private keys or seed phrases that are printed out. Although they are off line they have issues like physical damage, loss, or improper generation.

For the large majority of users hardware wallets present the best and most practical choice for long term storage.

What to look for in a Cold Wallet.

When it comes to long term crypto storage, of which cold wallets will be used in the discussion, here are some things to keep in mind:

• Security features and chip protection
• Backup and recovery options
• Supported cryptocurrencies
• Ease of use
• Brand reputation and track record
• Open-source or audited firmware
• Taking those factors into account will have your assets protected for years.
• Ledger Nano X — which is the best in the field.

Ledger Nano X is at the top of the class in terms of hardware wallets. It puts out great performance in terms of security, ease of use, and which assets it supports.

The wallet has a secure element chip for protection of private keys against physical and digital attacks. We support a large number of cryptos and tokens which makes us a great choice for diverse portfolios.

Ledger Nano X has also introduced Bluetooth which in turn enables our users to use a mobile app for asset management without trade off security. For long term holders that occasionally require access this is a great feature.

Ledger Nano X is the choice for users that are after a top of the range cold wallet which also supports many assets.

Ledger Nano S Plus  Best Choice for Long Term Holders.

Ledger Nano S Plus is a more economic alternative to the Nano X but at the same time upholds the the same base security standards. It also does not feature Bluetooth, but in a long term storage capacity that is usually not a minus.

The device supports many different cryptocurrencies and we have seen an improvement in storage capacity which is a step up from the older models. It connects via USB and also works very smoothly with Ledger’s software interface.

For those that put security and value at the top of the list instead of extra features, Ledger Nano S Plus is a great option.

Trezor Model T — which is best for open source security.

Trezor Model T is a top level hardware wallet that also has a great focus on transparency and open source development. Many security conscious users prefer Trezor which is they use for its public audit of firmware and software.

The Model T has a touchscreen feature that which users are able to use for entering in PINs and passphrases right into the device which in turn reduces the risk of keylogging.

It includes a large variety of cryptocurrencies and also works with many third party wallet apps. For those that value transparency and open source security Trezor Model T stands out as a good choice.

Trezor Model One  Easy and Dependable Cold Storage.

Trezor Original which is the first in the hardware wallet line up they put out which helped bring into the mainstream the practice of cold storage for crypto. May not have the latest in features which you’ll find in the newer models but it still is a very reliable and secure choice for long term storage.

Trezor’s platform supports most major cryptocurrencies and we see that they have gone with a very simple user interface. Also for new users or those which require a easier solution out of the more complex storage options Trezor One is the choice.

BitBox 02  Security at its Purest Design.

BitBox02 which we have designed with simplicity and security in mind. We present a clean design and a minimal user interface which at the same time as it reduces complexity also does not sacrifice protection.

The wallet has support for most popular cryptocurrencies and also has what is at the moment very advanced security features which include secure chips and microSD card backups. BitBox02 does in particular see a great deal of use from those that are focused on privacy.

For those that prefer a minimalist approach and strong security features BitBox02 is a good choice.

Coldcard  for Bitcoin only long term storage.

Coldcard is for Bitcoin users mainly. We see it put together with a focus on long term storage.

The device is a platform for air-gapped transactions which use microSD cards, we do not require direct USB connections. This level of separation makes Coldcard very resistant to online attacks.

Coldcard is the choice for those experienced in Bitcoin that prefer maximum security to convenience.

Are Paper Wallets Still Safe?

Paper wallets at one time were a popular choice for free cold storage but they do present great risk. Poor key generation, physical damage, and loss which in turn may cause permanent loss of your funds.

For a long time, paper wallets at present are not recommended unless they are created and stored with great care. Hardware wallets do in fact provide much better protection and usability.

Best practices for cold wallet storage.

Using a cold wallet is a step but so is following best practices.

• Always keep your recovery seed safe.
• Store backups in multiple safe locations
• Never give out your private keys or seed phrases.
• Buy from authorized retailers only.
• Keep firmware updated when needed

Proper storage that which you do today will see your crypto secure for years to come.

Are Cold Wallets Worth It?

For crypto long term holders cold wallets are a must. Although there is an initial cost, the security they provide is well above what you get with exchanges and online wallets.

Cold storage devices provide peace of mind, full ownership, and protection against online threats which is what makes them the best for crypto storage.

Future of Cold Wallet Security

As we see the growth of the crypto space cold wallet technology is improving. We are seeing in to that better user experience, improved options for recovery, multi signature support, and greater connection with dApps.

Keeping your private keys offline is the best long term solution for crypto.

Conclusion: Selecting the Best Cold Wallet for Long Term Crypto Storage.

Selecting the right cold wallet depends on your experience level, the cryptocurrencies you are holding, and how often you will access your funds. As for choices of cold wallets which do well in the long term, we have the Ledger Nano X, Ledger Nano S Plus, Trezor Model T, and BitBox02, which all present their own benefits.

For serious crypto investors cold wallets are a must  they are fundamental to security. By using a reliable cold wallet and adher to proper security protocols you can protect your digital assets and hold them with confidence over the long term which is independent of the market.

Disclaimer: BFM Times acts as a source of information for knowledge purposes and does not claim to be a financial advisor. Kindly consult your financial advisor before investing.