In order to protect your crypto assets from hackers and malware, different cold storage types are commonly used in cryptocurrencies. Here are some of the most popular cryptocurrency cold storage types:
Cryptocurrency Hardware Wallet
A hardware wallet is an electronic device that uses private keys stored offline to sign transactions. It also allows you to recover your funds using a backup seed key if the device is damaged or lost.
It’s the safest cold storage option, but it’s not cheap.
A paper wallet is a way to store cryptocurrencies offline. In the form of printing on QR code paper. Every time you need to make a transaction, you can do it by scanning the code.
Since you store your keys away from your web server, there is minimal chance of them being stolen.
But paper wallets are not suitable for partially transferring funds. At this time, the private key of the paper wallet must be imported into the desktop wallet. Some paper wallet providers offer tamper-proof designs for added security. Due to the offline nature of paper wallets, they are completely immune to malware, viruses and hackers.
Once you’ve set up your paper wallet, you need to make sure your website code works offline. Once the paper is printed, you can put it in a sealed plastic folder, laminate it, or store it safely in a bank vault.
Cryptocurrency Storage on a USB Drive
One of the easiest ways to keep your coins cold is to use a USB drive as a cold wallet. You can use it to export the private key and save it to a USB drive. However, this option has drawbacks as anyone with access to your USB can access your password.
Desktop wallets are clients that can only be accessed through your computer.
In an offline environment, they can be used to export files containing encrypted private keys. Private keys are stored offline on your computer in these software. However, it is online when you receive or send funds through them.