If you are yet to invest in crypto and worried about the security of your holdings, it’s high time you consider offline storage. While experts agree that it’s ok to store crypto on a mainstream exchange like Kraken and many others, offline storage comes with an array of advantages.
With cold storage, your crypto is stored on a platform that isn’t connected to the internet. This guarantees better security for your crypto holdings since it eliminates the chances of being hacked through.
Unlike systems connected to the Internet which are subjected to cyber hacks, cold storage isn’t susceptible to online theft. While cold storage offers better security, transactions on a hot wallet are faster and easy to trade with other crypto assets. To invest in bitcoins you can visit Bitcoin Boom
Also called a hardware wallet not only works in conjunction with compatible software in the computer but also stores the user’s private keys and address.
In this article, we explore why a cold wallet is ideal in securing your crypto holdings.
The major reason why many crypto users now prefer cold storage is security. Whereas hot wallets facilitate fast transactions, cold wallets score in terms of security. When you store your crypto offline, you are guaranteed better security since your wallet can’t be compromised.
Additionally, you won’t have to worry about the danger of malware and other dangerous attacks that may lead to the loss of your funds. As such, cold wallets offer the perfect security that you may need.
The security of your data is paramount. By using a cold wallet, the safety of your data is guaranteed. This means you have total control of your crypto holdings and no one else can access your private information. Therefore if you are concerned about security breaches associated with online platforms, it’s high time you consider using a cold wallet.
#3 Eliminates third parties
If you want total control over your crypto holdings then it’s high time you consider using a cold wallet. Contrary to hot storage on exchanges where you may not have control over your private keys, cold wallets let you manage your crypto portfolio without interference or manipulation from third parties.
For example, if you store your crypto assets on an exchange, the platform has total control over your portfolio. The only role you will play is to request permission to make transactions.
The danger about an exchange having total control over your account is that the platform can easily suspend your account under the pretense of suspicious activity. Should such happen then you may never recover your funds.
The most interesting part is that you may not make withdrawals at any given time since you must always request permission to access your funds.
#4.Easy to Manage your Portfolio
Aside from better security, cold wallets let you manage your crypto portfolio on the go. This means upon installing on your device, you can store multiple digital assets from various exchanges. That way, you will easily make deposits, conversions, withdrawals all from the same platform.
Therefore to avoid scattering your crypto all over the place, you can use offline storage to have total control over your crypto assets.
While cold storage is cheaper compared to hot storage, the pricing may be determined by many factors including different time zones. The unique aspect is that cold storage costs almost half the amount you may incur in hot storage.
Even though pricing varies from one cold storage to another, the pricing is unmatched. It is against this backdrop that we recommend cold storage for your holdings in case you are working under a limited budget.
Whether you are an established crypto trader or just started with crypto, the first thing you need to consider is how to secure your crypto holdings. In this case, a cold wallet offers you the advanced security that you need.
Although hardware wallets have become popular among crypto users, transactions made on cold wallets are not as fast as those on hot wallets. The only undoing about hot wallets is that they operate on crypto exchanges which exposes your crypto holdings to hackers and theft.
Having said that, both hot and cold wallets come with advantages and disadvantages. You should therefore choose the one that suits your portfolio.