BigONE Strategy: cold wallet-your guardian of encrypted assets!
When you hold cryptocurrencies, the first thing to do is find a safe place for them to store. The cryptocurrency market is a popular target for scammers and thieves. If you don’t protect your crypto assets well, you might lose them. Due to this, encrypted wallets were created.
Currently, investors can use two types of crypto wallets: hot wallets and cold wallets.
The main difference is that the hot wallet is connected to the Internet, but the cold wallet is not. This makes the hot wallet more comfortable to use, but hacker assaults threaten the hot wallet’s security. Cold wallets have a substantially lower danger of being hacked than hot wallets. Another difference is the cost. Most hot wallets are free to use. However, cold wallets often cost $50 to $150. Thus cryptocurrency investors frequently worry whether it is worthwhile to pay for the protection of cold wallets. BigONE feels that it is worthwhile to pay for asset security. Of course, before you pay to utilize a cold wallet, consider what makes a cold wallet the ideal option for crypto-asset safekeeping.
Why is a cold wallet the best choice for storing crypto assets?
When investors buy cryptocurrency, they will be faced with the following different storage methods to choose from:
Deposited in an exchange account. Some cryptocurrency exchanges store users’ cryptocurrencies in their own cold wallets to ensure safety. However, technically speaking, once there is a hacker intrusion, the user’s account is also at risk of being hacked.
⦁ Move it to the hot wallet. That is a digital wallet on the Internet, a computer, or a smartphone.
⦁ Move it to the cold wallet. That is any storage method that is not connected to the Internet. The most popular type of cold wallet is a hardware wallet (a device used to store encrypted assets).
Investors’ private keys can be stored in both hot and cold wallets, allowing them to access their cryptocurrency. Someone who obtains the private key can steal the investor’s cryptocurrency. Even though many users utilize hot wallets without losing their crypto assets, there are always risks. The hot wallet’s creator will keep the investor’s private key on its web server. If it is compromised, the investor’s private key is at risk. Computer viruses, in addition to hacker attacks, may infect Hot wallet equipment. These risks can be effectively avoided by using a cold wallet. The private key of the investor will be kept in the wallet offline. Even if the hardware wallet is connected to a computer, the private key will never exchange data. If the cold wallet is inadvertently connected to a virus-infected computer, the investor’s cryptocurrency will not be at risk.
When should I use a cold wallet?
BigONE recommends using a cold wallet to store your cryptocurrencies if you have a huge amount of cryptocurrencies that, if lost, will affect you and your finances. Cold wallets may not be appropriate for investors who have a small number of coins. If an investor owns a cryptocurrency worth $100 or less, the cost of using a cold wallet will be comparable to the coin’s value. BigONE argues that paying $100 to preserve a $100 cryptocurrency is pointless.
Given the typical pricing range of cold wallets, you should consider using a cold wallet if you have $250 or more in bitcoin. BigONE cannot give you an exact answer because everyone’s risk tolerance is different, but given that cryptocurrencies have an extensive appreciation space, it is preferable to be careful. If you intend to include cryptocurrencies in your investment portfolio, selecting a cold wallet is also a good option. It would be best if you got a cold wallet as soon as possible for safekeeping.
Cold wallet recommendation
When you decide to pay for a cold wallet, the next question is which cold wallet you should choose. There are many choices in the current market. BigONE recommends two of the most popular brands, Ledger and Trezor.
It is worth noting that Ledger had a data breach in July 2020, and its reputation was subsequently hit. Although its hardware wallet was not affected and no one lost any cryptocurrency, more than 250,000 customer records were leaked, many of which have become targets of threats and phishing scams. Despite the violations, many cryptocurrency enthusiasts still recognize the quality of Ledger wallets. Currently, there are two types of Ledger wallets to choose from:
Ledger Nano S, priced at about $59
Ledger Nano X, priced at about $119
Trezor has not had any security issues, and its wallet is open source, which is advantageous from transparency. Some users have complained about the design of their wallets and feel that the user experience is not user-friendly. Although they are occasionally criticized, Trezor wallets are usually highly rated. At present, Trezor wallets are also available in two types to select:
Trezor One, priced at about $60
Trezor T, priced at about $194
BigONE recommends that everyone spend some time reading user reviews before buying a cold wallet. Each cold wallet has different designs and functions. According to their own needs and usage habits, investors should compare them in many aspects to find a cold wallet that suits their needs.
For cryptocurrency investors, choosing a cold wallet to protect the security of crypto assets is a wise choice. Investors can buy it without paying too much money. If you are buying cryptocurrency and have a long-term plan to hold it, hoping that it will be more valuable in the future, a cold wallet can ensure that your crypto assets are always in a safe state.
About BigONE
BigONE is a global cryptocurrency exchange that provides a platform for trading various cryptocurrencies. It was founded in 2017 and registered in the Netherlands. The group operates in Russia, Brazil, Vietnam, Seychelles, Singapore, Japan, and Indonesia, providing marketing, investment, and blockchain technology research & development.
