A cold wallet, or cold storage, is a physical device that keeps your cryptocurrency completely offline. These wallets store a user’s address and private key on something that is not connected to the internet and typically come with software that works in parallel so that the user can view their portfolio without putting their private key at risk.
Cold wallets are the most secure way to store your Bitcoin or other cryptocurrencies. Cold wallet or cold storage is offline and is usually specific hardware like a USB designed to store cryptocurrency.
Like a hot wallet, there are public keys — such as a crypto address for the cold wallet — and private keys that the wallet owner uses to access their assets. However, the private keys for a cold wallet aren't stored on the internet like they are for a hot wallet.
Why a Cold Wallet?
Cold wallets are more secure than hot wallets. It enables you to remove your keys from your wallet and store them somewhere that is not connected to the network. Additionally, cold storage methods shouldn't have the ability to communicate with any other electronic device unless it is physically plugged into that device when you're accessing your keys.
Below are the two most popular types of cold wallets.
- Hardware Wallet
A hardware wallet is a physical device that stores your cryptocurrencies offline, a security measure to protect your coins from being stolen. They are constructed out of durable metal and have a special chip that helps to secure your coins. A hardware wallet is one of the safest methods to store your cryptocurrencies. When using a hardware wallet, access to your coins is encrypted by the device. This makes it safer than an online wallet
- Paper Wallet
A paper wallet is a piece of paper with your keys printed out on it. When you choose to print your keys, they are generally removed from your digital wallet and the network. No one can hack your paper wallet or retrieve your keys unless they physically take the paper on which you have them stored. Paper wallets are generally created by paper wallet generator apps. These programs should be able to be used while you're disconnected from the internet
How 8V.com Protect Your Assets
8V.com is a digital asset exchange legally registered in Canada and the United States. Operated by a group of professionals in the financial industry, 8V.com passed the strict scrutiny carried out by FINTRAC and obtained the Money Service Business License (MSB). With our high capacity and low latency match engine, we are proud to provide secure and efficient digital asset management and trading services to users worldwide.
8V.com adopts both hot and cold wallets. Furthermore, a great number of protection mechanisms such as multiple signatures and intelligent risk monitoring are implemented to ensure users’ assets are 100% secure. Meanwhile, 8V.com utilizes organization-level security mechanisms and industry-leading service providers for DDOS protection. Our servers are also under the custody of database centers that meet ISO/IEC 27001:2013、27017:2015、27018:2019、27701:2019、 22301:2019、9001:2015、and CSA STAR CCM v4.0 standards.
November 17, 2022
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