Cold Storage Wallet and hot wallet are two types of Bitcoin wallets. To know how to create a bitcoin wallet, you need to understand them. The Cold Storage Wallet is a wallet that won’t connect to the Internet. It means storing private keys of digital currencies offline. Mobile, web, and desktop wallets are hot wallets. A hot wallet does not mean that private keys stored on the Internet, but it means that private keys can connect to the online space.
If you want to use a particular currency for any reason, you need to make sure that the wallet supports that currency. Several bitcoin wallet types as Cold Storage Wallets can be divided into three types.
- Software wallet
- Hardware wallet
- Paper wallet
Keeping the currency for preventing financial losses is the most important decision that investors must make. In buying and selling cryptocurrency, they should know what a safe and secure wallet is to store their currency. It seems they need a crypto wallet, one of which is a Cold Storage Wallet.
Cold Storage Wallet
What wallets can be used for Bitcoin?
Bitcoin Cold Storage wallets are available in three forms: hardware, software, and paper.
- Hardware wallets: These wallets are usually in the form of flash drives that connect to the user’s digital device using USB. In this type of wallet as Cold Storage Wallet, the storage of users’ transaction information received online, but to increase the security of transactions, the storage of information done offline. Hardware wallets usually support most cryptocurrencies on the market.
- Software wallets: These types of wallets can be run on desktop and mobile. The wallet, which is web-based and used on the desktop, Internet software is needed to make a bitcoin wallet. It can only work on the same device that was downloaded and cannot be used on any other device. The private and public keys only store in the same device.
Due to the many uses that mobile wallets have found, these wallets are currently the most popular wallets on the market, and because of the possibility of using them anywhere and anytime, the small volume of the program and the simple interface and convenience compared to wallets. Desktops have a lot of fans.
- Paper wallet: This type of Cold Storage wallet is considered as a cold and offline wallet and has higher security than online wallets. This wallet is a piece of paper on which are written the public keywords and the user’s private key, or QR code for exchanging bitcoins. For users who want to keep bitcoin for a long time and look at it as a long-term investment, a paper wallet is the best option. You also need the Internet and a printer to make a paper bitcoin wallet.
Paper wallets were typically favorite in the primary years of Bitcoin. Recently, users of cryptocurrencies have looked to discover other ways to secure their resources.
How to create a web Bitcoin Wallet?
Creating a Bitcoin wallet for each of the operating systems has its steps. In this article, we are going to explain the steps of making a Bitcoin wallet for the web.
To create a bitcoin wallet on the web, do the following:
- First, go to bitcoin.org
- Click on Choose Your Wallet on the main page
- you can select the types of wallets that include:
desktop, hardware such a Cold Storage Wallet, mobile, and web wallets
- Click on the Web option to display the list of web wallets.
There are several ways you can create your web wallet, followed by the BTC.com tutorial. Click the Visit website to connect directly to the BTC.com website.
- Once you have logged in to the BTC.com homepage, you will be taken to the registration section to create a BTC.com web wallet.
- To start the process of making a Bitcoin wallet, you must first register on the site by entering your email and password.
- Once you have selected your email and password to confirm, you will need to re-enter your password.
- After clicking on Create new wallet, a page will open asking you to save the backup of your wallet, which displayed as a pdf file.
- Then check that you have saved the support file, click Continue.
- After you go through these steps, your wallet will create and its space will be provided to you.
- In this way, you can build your wallet in minutes and start buying Bitcoin with it.
Choosing Bitcoin wallet
What are the specifications of the Cold Storage Wallet?
Hardware wallets are a kind of Cold Storage Wallets that store cryptocurrencies in devices such as Flash memory (USB) or any storage driver stored in a safe place.
The hardware wallets have some benefits as following:
- When you have a large number of digital currencies, Cold Storage Wallet is the best option for you.
- Cold storage wallet is a method of keeping cryptocurrency tokens in an offline mode.
- They are the best place to keep your assets safe and secure. Security of hardware Cold Storage wallet ensured because the assets are stored offline.
- The private key storage space is physically in the possession of the wallet owner, and nobody has access to them.
- A Cold Storage wallet is resistant to hacking, phishing attacks, and other types of damage and is the best choice for long-term investments.
- If cryptocurrency investors use cold storage wallets, it helps them to prevent hackers from accessing their deposits via traditional online methods.
Why is a cold wallet safe and secure?
A Bitcoin wallet secured with the public and private keys of the wallet owner. In cold storage wallets, these keys stored offline in the wallet owner’s device and are therefore out of reach of hackers.
- The private key assigned to each bitcoin user contains a unique string of numeric characters. This key required to access the user’s bitcoin deposits.
- The public key is similar to the account name. This key helps you specify the destination address of the coins sent to the wallet.
Two people who trade in Bitcoin, where one is the seller and the other is the buyer, must share their public keys to complete the transaction. The buyer of the goods or services sends the required number of bitcoins as payment to the seller’s declared address. So the blockchain validates the transaction that indicates that the buyer or sender has the funds to send.
Once the coin payment delivered to the address, the seller or recipient can only access the funds through their private key. Therefore, it is necessary to protect the security of private keys. Therefore, it is necessary to protect the security of private keys. Because the hacker will unlock bitcoin or altcoins in case of theft.
How to protect your wallet against theft?
The Digital wallet generates and stores private keys. Sign transactions digitally using private keys and transmit the signed transaction to the network. Private keys stored in Internet-connected wallets or hot wallets are unsafe. The problem is that when a signed transaction published online, an attacker crawling on the network may have access to the private key of the transaction.
Cold storage wallet solves this problem by signing a deal with private keys in an offline space. Any transaction that starts online temporarily transferred to an offline wallet stored on a device such as a USB, CD, hard disk, paper, or offline computer. It is then digitally signed and transferred to the online network. Because at the time of signing the contract, the private key does not contact the server connected to the Internet, even if an online hacker encounters a transaction, he cannot access the private key used. In return for this extra security, the process of moving into the cold storage wallet is more difficult than the hot wallet process.
Security for crypto wallet
What are the safest Cold Storage wallets for bitcoin?
Here are four of the safest wallets ever made:
- Ledger Nano S,
They placed this hardware wallet the size of a flash in a metal frame for extra protection. The design of this Cold Storage Wallet is simple. The user interface of this wallet is also easy and reliable. The user can easily work with this wallet with Ledger Live software.
- Trezor Model T,
This Cold Storage Wallet has a color display. Model T security is provided by a PIN code, security phrase, and password recovery process from the device itself. In other words, recovery operations are not possible via PC or mobile phone.
This Cold Storage Wallet can create and store an infinite number of keys. It is easy to work with Keepkey because it has a large screen. It uses Windows software for access to the wallet.
Coldcard is a kind of bitcoin Cold Storage Wallet that can operate offline and sign transactions. This wallet creates another private key for you and allows you to have two wallets in one device.
What are the best mobile wallets for bitcoin?
Apart from cold safe hardware wallets, there are safety software Cold Storage wallets such as:
- Coinomi is one of the best Bitcoin wallets for desktop and mobile. This wallet can run on Android, iOS, and desktop. This wallet is suitable for beginners in the field of digital currencies. This Cold Storage Wallet has high security. This wallet has a simple user interface that is easy to work with for anyone with any knowledge. Coinomi with support for more than 125 digital currencies is a good option for users in this business arena around the world.
- Atomic Wallet is a Cold Storage Wallet The private and public keys and all data are kept on the user’s device. They don’t keep at any server, so there are no protective risks or the probability of losing deposits via centralized services. The major risk in Atomic Wallet is when you miss your backup terms or send it to other guy.
- Trust Wallet is another popular Bitcoin wallet developed by the Binance exchange. This wallet, like Coinomi, is one of the most popular options for storing digital funds and one of the best Bitcoin wallets for mobile. The most important advantage of Trust is its simplicity and user-friendliness. Rather than BTC, most of these wallets support other cryptocurrencies for instance BCH, BSV, Ripple, Ethereum, Cardano, etc.
- Mycelium Wallet: It is a convenient and secure mobile option that we can use on Android and iOS. It also can connect to hardware versions.
- Electrum wallet: As a Cold Storage Wallet with high security and extraordinary speed, it can run on both desktop and android operating systems.