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Today more than ever you should consider the different options to store Bitcoin and other cryptocurrencies cold


After a week filled with extreme turbulence in the crypto market, we need to learn the biggest lesson from the FTX exchange crash: we need to cold store our Bitcoin and cryptocurrencies.

The saying “Not your Keys, Not Your Coins” is more relevant than ever.

The next time you think about saving in an exchange, remember that saying: if you don’t have the keys, they aren’t your coins.

We have already seen how in the midst of the liquidity crisis that FTX suffered, users kept their funds frozen, and even ended up losing them.

What are Cold Wallets?

Translated into Spanish as cold wallet, they are digital wallets where you can store your cryptocurrencies and protect them with keys that are not connected to the blockchain, and consequently, not to the Internet.

We can consider it a savings bank account, but with the great advantage that your money is fully guarded by you.

These types of wallets are the most used to protect large amounts of cryptocurrencies, and it is undoubtedly the safest way to do it.

Unlike hot wallets, these wallets are not connected to the Internet, so they cannot be hacked.

The only risk of losing your money is that you lose the hardware or the seed words that protect your coins. Even in this case, there are backup methods to maximize security.

Cold wallets are the safest way to store Bitcoin and other cryptocurrencies

Why should we store our Bitcoin/cryptocurrency in cold wallets?

One of the principles of Bitcoin is that its users can safeguard their coins themselves, preventing them from being affected by events such as the one we recently witnessed.

So why store coins on an exchange if we have the ability to have them fully under our control?

Even a big exchange cannot be trusted too much.

Of course, it has its advantages to keep cryptocurrencies in an exchange, mainly due to the ease of exchanging them for others, exchanging them for fiat money, etc.

But, I think you should consider keeping only the frequently used ones in those places, and not using these platforms as a savings/investment box.

When you have your cryptocurrencies stored in a cold wallet, only you (or whoever has access to the keys) can access them, whenever and wherever you want.

What are the options for storing Bitcoin cold?

1.Hardware

Probably the most used option among those who prioritize security, ease of use, and durability. They are as easy to use as a flash drive. They do not need an Internet connection, so they manage to avoid hacks or viruses.

Among the most used versions we have those offered by the Ledger and Trezor companies.

2.software

A more accessible option than the previous one, since the vast majority of software wallets are available for free. They also don’t need an internet connection.

In this section we can highlight Electrum, Exodus, Atomic Wallet, Bitcoin Core, Bitgo.

3. Paper

We can say that it is the safest version, but on the other hand, it is the most prone to damage or loss.

As its name says, these types of wallets are stored on paper.

Its operation basically consists of printing the private and public keys of the wallet on a piece of paper. Some also include a QR code to use your funds.

Today there are hundreds of pages that allow you to generate this type of wallet in a matter of seconds.

Two very famous ones are: Wallet Generator and Bitcoin Paper Wallet.

Some recommendations for use

  • Do yes or yes a written endorsement of the seed words. These are generated at the time of starting the configuration of a Bitcoin cold wallet, either software or hardware.
  • Paper wallets should be kept in a safe place, out of reach of anyone other than you (or someone you decide may have full access to your coins).
  • The seed words are never backed up to the cloud, computer, mobile devices, etc. The easiest thing is to do it on paper.
  • The paper wallet generators must be downloaded, to run them without an Internet connection.
This is an example of what a seed phrase would look like
This is an example of what a seed phrase would look like



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