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Today, there are many solutions for storing cryptocurrencies, in this article we will consider “cold” or hardware wallets. Similar wallets appeared in 2013. Hardware wallets are the most reliable and secure solutions for storing cryptocurrencies and accessing DeFi services.
What are hardware wallets
A hardware wallet is a cryptocurrency storage device protected by cryptography. Such a wallet allows you to provide secure interaction between the wallet and the cryptocurrency ecosystem. Access keys to the wallet are stored offline and do not get into the network, excluding the possibility of their theft. Due to the lack of the possibility of compromising these keys in the online environment, they are called cold keys.
In order to be sure of the reliability of a hardware wallet, it is better to order it directly from the manufacturer. This guarantees that the purchased device is original and excludes third parties from interfering with its operation. Upon receipt of a hardware wallet, you should carefully inspect it for the presence of security tapes that signal the opening of the box or the device itself.
There are many ads for selling hardware wallets on the secondary market. It is not worth purchasing hardware wallets in this way, because. it could be hacked, reflashed in order to steal the data of the new owner. Despite the fact that cold wallets are the most reliable way to store cryptocurrency, you should not forget about the human factor, when such a wallet can be compromised due to ignorance or naivety. It happens that there are vulnerabilities in hardware wallets, but often manufacturers quickly resolve such situations by releasing updates for wallets.
There were stories when the websites of manufacturers of hardware wallets were hacked and stolen the data of buyers of such wallets. Then, supposedly on behalf of the manufacturer, letters were sent to these people with the need to update the wallet software. Links in such letters led to phishing resources where private, confidential information about wallets was collected. It must be remembered that no matter how reliable the device for storing cryptocurrency is, the main element of security is the user himself and his behavior. You must always be vigilant and increase your level of safety awareness.
Using cold wallets
The order of operation for all hardware wallets is approximately the same, the differences can be in individual details. Along with the device, the user also receives detailed instructions for using such a wallet.
The first step is to download the application for working with the wallet and connect the device to it. Next, you need to come up with a PIN code and write down the private key. This key must be kept in a safe place, because in case of loss or theft of a hardware wallet, it can only be restored using this key.
Most modern mobile wallets, applications, DeFi services interact with hardware wallets. For example, one of the most popular mobile wallets Metamask works with such popular hardware wallets as Ledger and Trezor. Through Metamask, with a hardware wallet connected to it, you can use DeFi applications and financial protocols. In this case, the funds will be in a secure cold wallet. Cold wallets can store many cryptocurrencies and can connect to different wallets.
Let’s take a look at the most popular hardware wallets.
One of the first hardware wallets with an intuitive interface and operational support. It is presented as a small device with a screen that broadcasts passwords, transactions, authorization data, as well as the words of the seed phrase when creating a wallet.
This wallet can work with a large list of mobile wallets, such as Trezor Suite, Electrum, Metamask. A complete list of compatible wallets is available on the manufacturer’s website. The wallet is connected to the computer via a USB connector. To connect to the phone, there are special adapters.
To purchase a wallet, you must leave a request on the manufacturer’s website – https://trezor.io/. You can also order accessories for your wallet there. Quite often discounts or promo codes are provided.
There are currently two models:
This model is equipped with a monochrome display and two buttons. It allows you to store the most popular cryptocurrencies, as well as ERC20 tokens. The cost of such a wallet is 59 Euros.
A more extended version of the previous model allows you to store a wider range of coins. The device has a full touch screen with the ability to control. The cost of such a wallet is 189 Euros.
This wallet looks like a USB flash drive, has a display and a button to confirm transactions. It connects to a computer via a USB cable, to a phone via an ORG cable. Also in some models it is possible to connect via Bluetooth.
A special Ledger Live interface has been developed, through which the hardware wallet is synchronized and configured. To work with crypto assets, you need to install this application through the Manager section.
You can purchase these hardware wallets on the manufacturer’s website – https://ledger.com
The following models currently exist:
This cold wallet allows you to install three applications on one device. Thus, no more than three cryptoassets can be stored on it. The screen size of the device does not fit the entire wallet address.
The cost of such a wallet is 59 Euros.
This option allows you to install 20 applications, which means you can store up to 20 cryptoassets on it. The screen of this model is larger than the previous one. The device can connect to Android and iOS phones via Bluetooth. The battery charge lasts for 3-4 hours of operation.
The cost of such a wallet is 59 Euros.
This model is in development and will be equipped with a larger screen and increased memory.
This wallet was created with the support of Binance, it is equipped with a camera for scanning QR codes when confirming transactions. This solution is able to work with more than 32 networks and a thousand crypto assets. Device manufacturer website – https://safepal.io/
This hardware wallet is compatible with the Safepal mobile wallet, and can interact with ecosystem products such as a trading platform, token exchange, and yield aggregator. Safepal has released its SFP token.
The cost of the device varies between $50-70.
The hardware wallet of this model has a large OLED display, a button for transactions and a USB port. The wallet is synchronized with the ShapeShift application, which, among other things, allows you to exchange tokens inside the wallet without displaying them on the exchange.
Manufacturer’s website – https://keepkey.io
The cost of such a wallet is around $ 50.
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