Inventory of the best cold wallets in 2023

**A controversy about cold wallet****​​

Recently, a new function released by a cold wallet has attracted widespread attention.

It is reported that this function is an ID-based “subscription” key recovery service. This function divides the wallet mnemonic (key) into three parts (encrypted sharding technology) and distributes them to three custodians: the cold wallet company, the encrypted asset custodian company, and the code custodian company. If someone loses their keys, two of the three shards can combine to regain access to locked funds. The price to subscribe to the service is $9.99/month.

However, some users have expressed concern that splitting the private key to a third party may allow the private key to be compromised, defeating the ultimate purpose of the cold wallet. In addition, if users use the service, they will need to provide real-name authentication to the company, which some believe violates the privacy value of digital assets.

Critics have also pointed to the cold wallet’s security, citing a 2020 data breach that exposed the emails of nearly 10,000 customers. While no wallets were compromised, the incident also called the company’s security into question.

This controversy also aroused many people’s curiosity about digital asset wallets. So, what are the digital asset wallets? What is a cold wallet? What cold wallets are available on the market? This article will take you into the world of cold wallets.

NOTE: This article does not constitute and should not be considered an opinion or recommendation to purchase any product.

Table of contents

1. **What is a digital asset wallet? **
2. **What is a cold wallet? **
3. **Why use a digital asset wallet? **
4. The difference between cold wallet and hot wallet
5. Popular cold wallet

• BalletRealBitcoin
• Ledger Nano X
• Model T safe
• CoolWallet Pro
• KeepKey
• Ellipal Titan
• Safepal S1
• SecuX V20
• Keystone Pro

6. How to choose a wallet? **

**What is a digital asset wallet? **

Unlike traditional wallets, which mostly carry cash, bank cards and other physical objects, digital asset wallets are storage for digital assets.

Our digital assets are all stored on the blockchain, and only the private key can help us access it, so the private key represents the ownership of the digital assets that exist in the digital wallet. Therefore, it is very important to ensure the security of the private key. If the private key is lost, it will cause you to lose all assets in the wallet.

At present, there are two main forms of digital asset wallets: hardware wallets, or cold wallets; and software wallets, or hot wallets.

**What is a cold wallet? **

A cold wallet, also known as cold storage, is usually a physical device that protects assets from unauthorized access, aka offline storage. It is generally believed that cold wallets are safer than hot wallets, because hot wallets are connected to the Internet, and there is a risk of hackers stealing the private key. A cold wallet, on the other hand, is usually a hardware device that generally looks like a USB drive or other physical device.

**Why do you have to use a digital asset wallet? **

Digital asset wallets are considered a safe option for digital asset holders to self-custody.

For digital asset security, self-custody is very important, it allows asset owners to fully control their own digital assets and avoid the risk of storing digital assets on the Centralized trading platform.

General holders store their digital assets on a Centralized trading platform because they trust a third party to keep their assets safe at any time. However, various incidents in the past year have shown that the Centralized trading platform is not safe-see the bankruptcy cases of FTX, Celsius, Voyager and other companies.

By self-hosting your digital asset private keys, you are able to store, send and receive digital assets without the permission of others.

At the same time, through high-difficulty passwords and other security precautions, such as two-factor authentication (2FA), these settings can ensure that the asset owner is the only person with access to these funds, preventing assets from being stolen on the trading platform.

The difference between cold wallet and hot wallet

Hot wallets need to be connected to the Internet and do not need to switch between offline and online modes to execute transactions. It is generally not recommended that users store large amounts of digital assets in hot wallets.

Cold wallets, on the other hand, are specially produced hardware devices used to store various digital assets in physical form. A significant advantage of a cold wallet is that it stores private keys offline in a more secure environment. These wallets are usually small and easy to carry.

Popular Cold Wallets

Despite the recent controversies, it is worthwhile to take a deeper look at some of the popular cold wallets currently on the market, listed below in no particular order.

Ballet RealBitcoin

RealBitcoin is BalletWallet’s flagship product and the world’s first non-electronic physical wallet for storing digital assets. Supports all Tokens on chains such as Erc-20, Trc-20, Bep-20, etc. The mainstream Token supports more than 200 kinds, and it is still growing.

RealBitcoin hardware itself does not have any electronic components and is made of pure steel.

RealBitcoin uses the BIP38 protocol. Instead of the traditional mnemonic, it uses a two-factor private key and has a tamper-proof design on the wallet to avoid getting second-hand or counterfeit products.

RealBitcoin is equipped with an application software - Ballet Crypto. The software itself does not store assets and private keys, and is mainly used to monitor assets and conduct digital asset transactions. The software does not require account registration and monthly fees.

Ledger Nano X

Ledger’s second-generation cold wallet is called the Nano X. Over 5,500 digital assets are supported through the integrated Ledger Live platform, including Bitcoin, Ethereum, and Cardano. Support for additional digital assets is added to the Ledger Live platform every year at the request of users.

The use of Ledger Nano X is to connect it to a computer with a USB cable, and it also supports Bluetooth technology to connect it to Android and iOS mobile devices.

The Ledger Live software is directly integrated into the Nano X cold wallet, which helps users manage all their digital assets through its simple user interface.

Model T Safe

The Trezor Model T is the brand’s second-generation wallet, similar to Ledger but with one added feature — it allows its users to access third-party exchanges such as Changelly and CoinSwitch from the Trezor website.

The Trezor Model T has a touchscreen and also has a MicroSD card port that can encrypt the PIN, securing the wallet from cyber-attacks.

Trezor T-exclusive security features include Shamir Backup, which builds up to 16 private key shards for asset recovery should something happen to your device.

When using Trezor Model T, you can also use Trezor’s QR button to view the QR code of the address, and the other party can scan it to start transferring money to you. Once the payment is processed, it will be listed on the transaction page.

CoolWallet Pro

CoolWallet Pro is a new DeFi-centric cold wallet, released in May 2021. It has the form factor of a credit card and encrypted Bluetooth communication, with access to DeFi.

CoolWallet Pro is equipped with an eye-catching e-ink screen for visual viewing of data and a drop-down button to confirm all transactions.

CoolWallet Pro is the third product in the CoolWallet series, dating back to 2016, which caters to the needs of DeFi users who want to use their assets for PoS (Proof-of-Stake) networks.

In addition to the existing mainstream product portfolio, Pro also provides support for Polkadot (DOT), Cosmos (ATOM), Tron (TRX) and TRC20, BEP-20 assets of the BNB smart chain, ETH, Cardano (ADA) and NFT.

KeepKey

KeepKey is a cold wallet in the form of a pen tray. The size of the wallet is significantly larger than other well-known digital asset wallets. However, this does not hinder its use. It is still very convenient to set it up and conduct digital asset transactions.

KeepKey can be password-protected to prevent physical theft.

KeepKey uses offline cold storage technology to store your public and private keys, and uses backup mnemonic words when your KeepKey is lost or damaged.

KeepKey operates in conjunction with the ShapeShift asset exchange platform, enabling transactions of multiple assets.

KeepKey’s software is completely open source, and you can also check it out on GitHub to cross-validate it.

Ellipal Titan

The Ellipal Titan includes a 4” color touchscreen for easy setup and monitoring of all transactions in real time.

Ellipal Titan does not utilize USB or Bluetooth to sign transactions, the Ellipal APP just uses QR codes.

The design of the Ellipal Titan circuit board prohibits all connections, including Wifi, Bluetooth and mobile phones.

Ellipal Titan is tamper-resistant and self-destructing, which protects your device from online and offline attacks. If it senses a break-in, it will destroy all the information (private keys) contained in it.

Safepal S1

The SafePal S1 cold wallet was launched back in 2019. It supports 54 chains and mainstream digital assets, including NFTs.

SafePal incorporates several features and security elements in terms of security, including recovery seeds, two-factor authentication (2FA), setting passwords, private key deletion pools.

The SafePal S1 has a minimalist look, resembling an MP3 player, with two unique seals affixed to the tamper-resistant packaging. It has a sizable color screen, a QR code scanner, and a D-pad controller for navigating the wallet.

SafePal is also equipped with a SafePal wallet software that you can use to monitor your digital asset balance and conduct digital asset transactions.

SecuX V20

SecuX V20 is one of the very popular cold wallets in the SecuX series.

The SecuX V20 has a 2.8-inch color touchscreen display and a 6000mAH battery for offline/disconnected operation that lasts for about 7 hours.

SecuX V20 connects to the host computer via USB or Bluetooth, it can be used on a desktop computer, laptop, iPhone, iPad, Android smartphone, tablet or Chromebook.

SecuX V20 has a CC EAL5+ certified secure element chip from Infineon. SecuX V20 can be completely offline through low-energy Bluetooth connection to achieve data protection.

The QR code feature in the SecuX V20 wallet allows it to perform simple fund transfers and transactions on the wallet device.

Keystone Pro

The Keystone Pro (formerly Cobo Vault Pro), which features a four-inch touchscreen, open-source firmware with a fingerprint sensor, and support for PSBT bitcoin polysemy for added security from malicious attacks.

Keystone is a Hierarchical Deterministic (HD) cold wallet, BIP 32/39/44 compliant. By integrating QR codes for signatures, Keystone reduces the risk of malware intrusion and increases visibility.

The wallet battery for the Keystone Pro is removable, and both the Essential and Pro versions are AAA battery compatible and also come with rechargeable batteries.

How to choose a wallet?

For those with high interaction frequency, the hot wallet is simple and convenient. But if you pay more attention to asset security, cold wallets are the first choice. Of course, different cold wallets are also suitable for different usage preferences.

Whether it is a cold wallet or a hot wallet, the ultimate purpose is to store and protect assets. Therefore, if only from this perspective, Ballet RealBitcoin, Trezor Model T, and SafePal are all good choices.

Generally speaking, a good cold wallet should be simple and easy to use, and the storage of private keys should not be too cumbersome, otherwise the security will be reduced instead. Most cold wallets have electronic components such as display screens and chips, which are easily damaged and repaired, so the after-sales service support of the manufacturer is also particularly important.

Article Source:

Original Author: Decentralized Dog

Original link: /alexandria/article/best-crypto-cold-wallets