One of the best ways to safeguard your crypto investment from theft is to store it in a cold wallet. These hardware storage devices are internet independent and safe.
Notable names such as Ledger and Trezor have created an array of secure cold wallets for crypto investors to keep their assets safe. However, choosing the right cold wallet can be challenging.
In this article, we highlight some of the factors you should consider when choosing a hard wallet to store your digital asset.
Factors to Consider When Choosing a Cold Wallet
There are a few important things you need to check before settling for any cold wallet. They include the following:
Compatibility is one of the biggest considerations when choosing a cold wallet. These hardware storage devices are connected via Bluetooth or a USB. However, not all wallets are compatible with both of these devices.
You should know which of these devices a cold wallet you want to buy connects with before purchasing it.
You must also ask yourself what Operating System does the wallet support? A wallet that doesn’t support Windows Operating System will be a bad choice if you’re a Windows user.
Also, does it support only 64-bit systems or 32-bit systems inclusive? Of what use is a storage device that doesn’t support your Operating System specification? You’ll have compatibility issues if you buy the wrong cold wallet.
- Number of Supported Currencies
Don’t overlook the number and types of currencies a cold wallet supports when shopping for one. The cryptocurrency industry offers crypto investors thousands of digital coins to invest in. You may decide to diversify your portfolio by investing in more than a crypto coin.
You need a storage device that supports several coins so you want have storage issues when investing in multiple currencies. That’s a surefire way to spare yourself the stress of holding your assets in different storage devices.
Crypto investors do not only need a storage device for their coin, they also need a calculator to be able to determine the amount of tax to pay on their investments.
Affordability is another factor you should consider if you need a reliable and secure cold wallet for your digital assets.
Some cold wallets are free while some come with a price tag. If the free ones meet your needs, go ahead with them. Otherwise, look for paid options that check all your boxes and are within your budget.
Although cold wallets are USB-shaped, they nevertheless come in a wide range of sizes. Sometimes, it may be mandatory for you to move around with the hardware wallet. A portable storage device will be easier to have on you always than a heavier one.
Choose a size and shape you can effortlessly put in your pocket or other convenient places and move freely. This highlights the importance of portability.
This is a no-brainer. Security is the most important factor to pay attention to if you don’t want to lose your asset to cyber threats and other challenges that may arise from investing in digital assets.
Most cold wallets are equipped with security technologies that boost your digital assets’ security against fraud, unauthorized access, and other security challenges that may cost you your investment.
Don’t compromise on security when choosing a cold wallet, regardless of the wallet’s other attractive features. Rather, prioritize your asset’s security.
The importance of choosing the most appropriate cold wallet to store your digital asset cannot be overemphasized in the face of constant threats from cyber criminals.
Since not all cold wallets can meet your requirements, check all the available options and ensure that your chosen hardware wallet is secure, portable, compatible with several cryptocurrencies, and affordable. The little time you devote to reviewing your options may make a huge difference between securing your asset and exposing it to cyber criminals.