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Cold Storage Wallet for Cryptocurrency

Cold Storage Wallet for Cryptocurrency

06 May, 2020

A wallet, naturally enough, is where you store your coins. A crypto wallet is just that: storage for your cryptocurrency. A wallet for Bitcoin or other cryptocurrencies is essential for storing your digital assets. The most secure type is called a cold wallet.

What is a cold wallet?

Cold storage, in this case, refers to storing your cryptocurrency offline. Specifically, the private keys that actually control access to the crypto wallet, which should never be online.

a Bitcoin wallet, taken too literally

Every crypto wallet, whether for Bitcoin or other crypto coins, has a public and private key. The public key is your address - people need to know that to send you coins. The private key is what gives you access to the coins so that you can withdraw and spend them. That’s why it’s important to keep it in cold storage – in other words, offline. If something isn’t accessible via the Internet, then it isn’t vulnerable to hackers or malware.

Types of cold storage

In theory, any storage method that involves keeping your private keys offline counts as cold storage. This can range from the latest hi-tech solutions to the downright primitive. Types of cold storage include:

  • Writing down your private keys on a piece of paper.
  • Printing your private key as a number or QR code on a ticket.
  • Storing your private keys on a USB drive.
  • Keeping the private keys on specialized offline wallet software on a computer.
  • Using a dedicated hardware wallet.
  • A crypto exchange with reserves in protected secure servers.

Cold wallet VS Hot wallet

A hot wallet is a form of cryptocurrency storage that is connected to the Internet. We’ve established that cold wallets are more secure, so why use hot storage for your bitcoin? Here’s a useful way to think about the two kinds of crypto wallet:

 Cold WalletHot Wallet
ConnectivityOfflineOnline
ComparisonSavings accountChecking account
Best forHoldingSpending

The hot wallet may be more vulnerable, but the risk is necessary for a certain level of convenience.

A hot wallet is necessary to enjoy all the services that we’ve become accustomed to in online banking, such as transfers, deposits, exchanges, and everything to do with money management.

Just like other online services, hot wallets can be secured. Methods like passwords, PINs, two-factor authentication, etc., are all employed. Of course, these security measures can still be overcome by sufficiently determined or skilled hackers, so the best crypto exchange platforms will use cold wallets in addition to the hot storage required to provide financial services.

Cold storage VS Hardware wallet

Hardware wallets are basically standalone devices made to store your private keys offline. Trezor, Ledger, and Keepkey all make hardware wallets with differing designs. They often come with keypads or limited user interfaces, so that you can access your keys via a PIN or other type of code.

a Trezor wallet connected to a laptop

Hardware wallets are very secure and your keys are even protected when the wallet interfaces with an Internet-connected computer. However, you need to physically have the wallet on hand every time you want to actually use your cryptocurrency, which is inconvenient if you’re an active crypto trader. Cryptocurrency in a hardware wallet also can’t accrue interest.

Cold wallet for crypto exchange

Crypto exchanges manage huge reserves of cryptocurrency, and they also facilitate exchanges, deposits and withdrawals for many users. As such, they must pay extra attention to security. The famous Mt.Gox hack, in which 740,000 bitcoins were stolen, remains a cautionary tale for the crypto community.

A reputable crypto exchange uses cold wallets as well as hot wallets. This is made possible by keeping the majority of the assets in cold hardware (offline data storage or secure servers), protected by security protocols, and only having the minimum amount of cryptocurrency needed for short-term liquidity (withdrawals, etc.) in hot wallets.

cybersecurity is essential for a crypto exchange

This is akin to keeping physical money locked up in vaults, as opposed to being available over the counter.

StormGain cold wallet for cryptocurrency

StormGain, the top crypto exchange platform for buying, trading and exchanging cryptocurrency, offers state of the art security by keeping the vast majority of digital funds in cold storage. A small reserve is online so that clients can access their money. Two-factor authentication and leading security protocols are also implemented.

In essence, StormGain offers the best of both worlds - cold wallets for your cryptocurrency in storage, but a full range of services for when you need to move your digital assets.

Cold wallet for Ethereum, Bitcoin, Ripple, etc.

There is more to cryptocurrency than Bitcoin, and any serious crypto exchange will offer a range of cryptocurrencies. StormGain offers 6 crypto cold wallets for the following coins:

  1. Bitcoin (BTC)
  2. Bitcoin Cash (BTH)
  3. Ethereum (ETH)
  4. Ripple (XRP)
  5. Litecoin (LTC)
  6. Tether (USDT)

Cold wallet App

Using the StormGain app, you can buy, exchange and trade cryptocurrency 24/7 from your smartphone, and rest assured that the coins are held in cold storage and safe from hackers.

The StormGain app is available in the Google Play Store and iOS App store, and has won awards for its intuitive and user-friendly design.

Benefits of StormGain (bonuses)

StormGain is the best crypto trading and exchange platform to use if you want the security of the best cold storage crypto wallet for your cryptocurrency, in addition to the benefit of easily being able to trade and exchange.

Not only does StormGain come with built-in secure wallets to store your cryptocurrency, it offers up to a 15% bonus on deposits and great interest rates of up to 10% per annum through the StormGain loyalty program. This lets you profit from your currency and also keep it safe at the same time, just like the best savings accounts.

Alternatively, you can trade your cryptocurrency on StormGain with an up to 200x multiplier and 100% liquidity, without having to mess around with paper files or extra hardware.

Registering with StormGain is simple and only takes 5 seconds.  Sign up now  and get up to a 15% bonus on your deposit!

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