With the growing popularity of cryptocurrencies, the number of cyber security threats has increased significantly. Hackers are always looking for opportunities to steal your crypto coins.
To keep your cryptocurrencies safe, you must store them in a Cold Wallet. For those unversed, a cold wallet is a type of offline wallet that is used to store crypto coins. It is also known as a “paper wallet.” This type of hardware-based wallet is used for storing large amounts of cryptocurrencies for a long time.
However, a cold wallet is not 100% safe. Even though it is not connected to the internet, it is still vulnerable to hacking. Luckily, some ways can help secure your cold wallet.
How to secure a cold wallet?
If you are looking for ways to secure your Bitcoins with a cold wallet, you are in the right place. In this section, we will discuss the things you can do to increase the security level of your cold wallet.
- Paper wallet safety
Paper wallets are one of the best forms of cold storage. You can store a paper wallet offline like a safety deposit box. Many websites allow you to create paper wallets. All you have to do is sign up on one of those websites and make a paper wallet. The site will give you a public and private key. Take a printout and store them in a safe place such as an external drive.
- Cold wallet software security
A cold wallet is a hardware-based wallet that is physically separate from your PC. It is used to store your private and public keys. Not only that but it can also be used for making crypto-based transactions. These types of wallets are popular because of their simplicity and user-friendliness. But most importantly they are very secure in comparison to other types of crypto wallets.
- Create a backup
Even if you are using a cold wallet, you should create a backup of your public and private keys and store them in a safe place. For additional security, you should consider using multi-signature technology. It is a type of wallet that requires more than one private key to make a transaction.
Cold wallets are any day better and more secure than online wallets. You can further secure your cold wallets by following the suggestions given in this post.