Choosing the right type of cold wallet
Before you start using a cold wallet, it is worth considering the type of wallet that will work best in your case. The most popular options are hardware wallet, paper wallet and steel wallet. Each of them has its advantages and disadvantages, so it is worth analyzing them carefully to choose the best solution for your needs.
The choice of the type of cold wallet depends on our individual needs and preferences. Hardware wallet is most often recommended due to its convenience and security. It is a device that we connect to our computer and that stores our private keys offline. An example of the best cold wallet available on the market is AT Wallet with a biometric verification option!
Purchasing and configuring a cold wallet: Selecting a device and first steps
If we have decided on a hardware wallet, it is worth investing in a reputable device such as Ledger Nano S, Trezor or KeepKey. After purchasing the wallet, it should be configured according to the manufacturer's instructions. This process usually involves setting a PIN, generating private keys, and backing up the seed phrase. Please make sure you keep this information in a safe place.
A hardware wallet is a device that is used to store cryptocurrencies offline. First, select and download dedicated software. Then you need to configure the device, establish a PIN, generate private keys and back up the seed phrase. A seed phrase is 12 or 24 words that will allow us to recover our private keys in the event of loss or damage to the wallet hardware.
Creating and securing a paper wallet: Generating and printing private keys
Another type of cold wallet is a paper wallet, i.e. a paper wallet on which private keys are saved. It can be generated using special websites that allow you to generate private keys and print a ready-made wallet. Remember to choose a reliable source and protect the printed wallet against damage, e.g. by laminating it.
A paper wallet is a form of cold wallet that involves generating private and public keys and then writing them down on paper. Generating a paper wallet involves generating key pairs that are stored on paper in the form of QR codes. Special websites or dedicated applications can be used for this purpose. Remember that it is important to use only trusted sources and to ensure proper security of your paper wallet. However, it must be clearly stated that a paper wallet is not as secure as a cold wallet. For this reason, AuthenTrend's cold wallet has a huge advantage over this type of solutions!
5 features of a good cold wallet
- Security: The first and most important feature of a good cryptocurrency hardware wallet is security. A high level of security is essential to protect your investments from potential hacker attacks. That's why it's worth choosing wallets with advanced security features, such as private keys stored offline, physical buttons to confirm transactions, and protection against spyware.
- Ease of use: Good hardware wallets should be easy to use, even for people who are just starting out with cryptocurrencies. This means a simple interface, clear instructions and ease of setup and use on a daily basis. Intuitiveness and simplicity can significantly increase the comfort of using the wallet.
- Multi-currency support: A good hardware wallet should support many different cryptocurrencies. The more currencies a portfolio supports, the more flexibility it gives investors. Some wallets only support one or two major cryptocurrencies, while others support hundreds of different tokens and altcoins.
- Compatibility: Compatibility with various operating systems and devices is another important factor to consider when choosing a hardware wallet. A good hardware wallet should work on both PCs and Macs, as well as Android and iOS mobile devices.
- Technical support and community: Good hardware wallets are often supported by active communities and technical teams. Community support can help you resolve issues, and regular software updates ensure your wallet is always secured and up to date. Active support from the wallet manufacturer is invaluable, especially in case of technical problems or service questions.
Cryptocurrency transfer to cold wallet: Sending funds from your online wallet to cold storage
Once you have a suitable cold wallet, you need to transfer your cryptocurrencies to it. In the case of a hardware wallet, this process is usually simple and takes place using dedicated software.
Secure fund recovery: What to do if you lose your cold wallet?
Losing a cold wallet can be a serious problem, so it is worth protecting yourself against such a situation. In the case of a hardware wallet, you just need to recover the funds using the seed phrase (mnemonic phrase) that you receive when setting up the wallet. When it comes to a paper wallet or steel wallet, the key to recovering funds is having a copy of the private key. Therefore, it is worth protecting private keys against loss or theft by storing them in safe places and creating backup copies.