Given some of the recent disasters on popular crypto exchanges, many token owners are looking for safer ways to store their money. Hot wallets are out of fashion right now because they are connected to the internet. But so-called “cold wallets” are very much in vogue. Unlike regular means of storing currency, nobody can access them via the web, so no one can take ownership of them.
What Is A Cold Wallet?
A cold wallet is essentially just a storage device with some special security features for holding bitcoin, ether, and other cryptos (including dogecoin). Rather than leaving money in online balances, cold wallets keep it offline, until you need to spend it. You can then transfer small amounts of coins and tokens to online wallets to trade them.
Cold wallets are, in many ways, the equivalent of old-fashioned, high-security bank vaults. They are a safe place to keep cyber assets and prevent theft. If criminals do not have access to cold wallets over the internet, it is almost impossible to hack them.
Of course, cold wallets can be stolen. But, like regular USB drives, they’re not a common target for petty criminals. Most thieves do not expect drives to contain large quantities of coins. And even if they do, there is no guarantee that they can access them.
What Types Of Cold Storage Wallets Are There For Crypto
There are several different types of cold storage wallets for crypto. You can use off-the-shelf USBs, but you are much better off choosing dedicated devices which can cost between $50 and $200 apiece.
Crypto cold wallets are less convenient than hot wallets and balances in exchange accounts, but they are much more secure. Even if criminals steal them, they will find it extremely hard to access the coins they contain.
Analyst and researcher, Brian Thuer, says that the market still has a long way to go, though. He points out that there are currently only around 18,000 people globally working on blockchain technologies and programming, far less than the 24 million software developers global firms currently employ.
Reasons For Using Cold Storage On A USB Flash Drive
There are several reasons for using cold storage on a USB flash drive.
The most obvious is cost. Today’s USBs are considerably more affordable than they were in the past. And, strangely, most are actually cheaper than conventional leather wallets. What’s more, you don’t have to use them exclusively for crypto. You can also store work-related items on them, games, or music.
USB drives also tend to be extremely reliable. That’s because they use flash memory which is more stable than traditional disk-based memory systems used on HDDs.
They’re also highly available. You can find USB drives in virtually any city all over the world. And there are services that will deliver USBs to you on the same day if that’s what you require.
Lastly, USBs are flexible. You can install virtually any kind of wallet on them. And they work with Windows and Apple’s operating system.