Since people want to invest in bitcoin for more than two years to get a higher return on investment, they know that the hacking activities are increasing, and they are looking for a secure platform or storage to store their bitcoins safely. Unfortunately, it is impossible to store bitcoins safely on the internet or on a wallet that needs internet access. That is why cold storage exists. However, many people heard about cold storage and never use these wallets for long-term investment because they have some confusion that will get cleared in this guide here. If you are interested in crypto trading and investment check Bitcoin Revolution to know more information.
Is there any support available in wallets?
It is always the responsibility of the user or investor to choose the right bitcoin wallet, whether hot or cold, in the right way to make their bitcoin safe and secure because there is no support. It is not the third-party system that is controlling and helping the users, unlike banks and other payment systems. If you are using the third-party exchange wallet, they will support you at a certain level, but if their system gets hacked, you can do nothing with their support team, or you cannot sue or get back your funds. So you have to select or research the right wallet that will help you hold bitcoin for the long term. Bitcoin is banned in some countries because there is no support system, no intrinsic value, or irreversibility of the funds or coins, leading to more frauds and scams. Still, good uses will also make the investors millionaire or billionaires.
Understanding the cold storage
Cold storage is where you can store your bitcoin or any other crypto coins without any internet connection. You see that when you open our banking application, there is a need for the internet. Otherwise, the app can not get opened, and you cannot do any transactions. The problem with this system or wallet is that hackers can access your mobile or computer device anytime. If he gets any security bug in the website or application, he can steal all the funds without getting any notification. If you are using or storing your private key on the internet, then there would be chances that the hacker can access your private key, which means ownership of your wallet goes to the hacker, and now he can do anything with your funds.
So in simple words, cold storage is keeping your funds offline without the need to store the private or public key using the internet. No one can access your home or the place where you store your private and public keys safely because they can attack only through the internet, but they would not have any option, which means zero risk to your wallet.
Types of cold storage
There are different categories of cold storage that you can go with given below:-
- Paper wallet:- The paper wallet is the most popular offline wallet, and most people use it for long-term bitcoin holding. Tons of websites will help you generate your paper wallet online, but it may be risky, and the offline way of generating a paper wallet is more secure and safe. You will get the private and public keys on your computer screen that you can print out and keep in an offline safe, secure space.
- Hardware wallet:- Hardware wallet means that the wallet can be touchable and portable. A USB hardware wallet is the best for storing your bitcoin offline, but make sure when setting up your computer’s USB wallet is not connected to the internet. You can store these keys in the USB, and anytime you think there is malicious activity, you can suddenly disconnect your USB from your computer, which will make your wallet safe. There are different types of hardware wallets available on the internet, and you can also go to the physical market to buy the right one after doing long and detailed research.
- Sound wallet:- You are hearing this wallet for the first time because it is also the new form of storing your wallet’s private keys in the voice recording. You will get the disc where your private and public keys would exist in the form of voice or audio, and you know there is also no need for internet access.
- Deep cold storage:- Deep cold storage is the storing your bitcoin offline in high security because you have to keep it in the offline place, but if the offline space is not safe, then there is also the risk of physical theft, spoiling, or destroying the wallet with climate or natural issue. Still, deep cold storage will cover up with multiple layers that would become very complex to access.
Disclaimer: The presented material by no means represents any financial advice or promotion. Be sure to do your own research and acknowledge the possible risks before using the service of any cryptocurrency platform.