- Pros of Cold Storage
- Using Hardware wallets to store cryptocurrency offline
- Features of Hardware Wallets
- Best Way to get a Hardware Wallet
- Cons of Hardware Wallet
- Paper wallets for Offline Store
- Ledger Nano S Tutorial : Setup and Guide (Hardware wallet)
- Advantages of a Paper Wallet
- How to get a Paper Wallet
- Like what you’re reading?
- A computer without an internet connection
Storing cryptocurrencies safely has always been one of the major concerns for the majority of crypto users as online storage/ Hot storage facilities are prone to hacking attacks.
Hence, here is the ways of storing the cryptocurrencies offline/cold storage which can help you to store and protect your holdings without getting into much hassle.
So How to store Cryptocurrency Offline ? lets take it one step at a time.
Hot Storage is anything that is connected to the internet is referred to ‘Hot Wallet”
Cold Storage is any device that is not connected to the internet and then would be referred to as a ‘Cold Wallet’
Basically, there is three way you can store your cryptocurrency offline by using the following 3 cold storages:
- Paper wallet
- Hardware wallet
- Storage facility without an internet connection
All three methods are very easy to use and promise better security for your holdings.
Let’s talk about what cold storage exactly is and what are the advantages of storing cryptocurrencies offline compared to hot storages before we start moving towards the step by step methods of using the above methods.
Anytime that you keep your currency in a device which has no connection to the internet is referred to as cold storage.
For those who are looking for the most secure way to store their cryptos, cold storages are the way to go! Pros of storing cryptocurrencies offline
Pros of Cold Storage
- The most secure storage facility
- A great place to store a large number of cryptos for a long period of time
- Promised security against hacking attacks
- Totally hassle free
- Doesn’t always require high-end storage devices and security measurements
It can’t be said that they are completely risk-free but if you follow the instructions correctly, and take every precaution possible, these are greatly minimized.
Now let’s talk about different methods through which you can make your cryptos more secure and how you can store your cryptocurrency offline.
Using Hardware wallets to store cryptocurrency offline
These wallets are also known as the hot wallet.
Hardware wallets are actual physical objects or devices which comes in USB-like structure.
However, there are many forms in which they come in. The most popular hardware wallets are the following:
- Ledger Nano S
Apart from these three, there is a number of other hardware wallets are available in the market but these three are the most trusted and popular ones and you can read a comparison between them here.
Features of Hardware Wallets
Hardware wallets store the private keys on external USB styled devices which are completely offline.
Some hardware wallets are capable of utilizing two-factor authentications for extra safety and also capable of making online payments, too. Best way to get hardware wallets
Best Way to get a Hardware Wallet
Getting a hardware wallet directly from a manufacturer is the most secure way.
Buying second hand or used hardware wallets should be avoided as they can’t be trusted.
These devices protect the private keys inside them with PIN protection and 2FA.
You can also connect hardware wallets to your smartphone and computer with a micro USB cable.
Cons of Hardware Wallet
The only con is the price. these wallets can be pretty expensive.
Paper wallets for Offline Store
This is probably the most cost effective method on storing cryptocurrency offline.
The best back up plans to keep your crypto coins safe and sound even when your computer hard drives or web wallet crash itself.
A paper wallet is basically paper on which you will have your private keys printed and later the printed paper will be stored in a secure place.
Ledger Nano S Tutorial : Setup and Guide (Hardware wallet)
Having your private keys printed on the paper is easy and hassle-free. You can even print barcode or QR code which can later be scanned to access your holdings.
Advantages of a Paper Wallet
- An ultimate back up for your private keys
- Totally free
- Not prone to hacking and other such online attacks
- Best place to store cryptos for long term
How to get a Paper Wallet
- Getting a paper wallet is extremely easy.
The best way to have your private keys printed on paper is to go on the exchange from which you are buying the particular coins.
- Once you complete the purchase you will be asked whether you want to store your coins on the online wallet or want to transfer it to your preferred storage facility.
Like what you’re reading?
- You will also be provided with the option to print QR code which consists the private keys or directly the private keys.
- You can either note down the keys or simply print the QR code.
- It is advisable to cut off the internet connection while printing the keys.
Later you can store your paper wallet in a fireproof safe and keep it in a safe place.
Paper wallets are extremely useful and safest when done correctly.
Make sure it doesn’t get into the hands anyone. Your Password known as the Seed Key is something that you must keep somewhere safe. Otherwise, you can lose your holding.
A computer without an internet connection
Last but not least.
Storing the private keys or coins in the desktop wallet can be extremely safe if the computer is not going online for that particular period of time.
If you have an extra device to spare which always stays offline it is another best way to go to storing the cryptos.