Cold wallets, also known as offline wallets, are a crucial tool for anyone looking to securely store their cryptocurrencies. Unlike hot wallets, which are connected to the internet and therefore vulnerable to hacking and other forms of online attack even you may be (a victim of phishing somehow), cold wallets offer a much higher level of security by keeping your cryptocurrencies offline. This makes them an essential tool for anyone looking to protect their digital assets and ensure their safety and security.
Using a cold wallet is that it provides an additional layer of security. Imagine if your computer is attacked by hackers and you get keylog! By storing your cryptocurrencies offline, you reduce the risk of them being stolen or hacked. This is because a cold wallet is not connected to the internet, so it cannot be accessed by anyone attempting to steal your cryptocurrencies. In contrast, hot wallets are constantly connected to the internet, making them a open for hackers and other vulnerabilities for sure!
In addition to providing security and protecting against potential losses, cold wallets also offer convenience. Unlike hot wallets, which require you to constantly monitor your cryptocurrencies and keep them updated, cold wallets allow you to store your cryptocurrencies offline and access them whenever you need them. This means that you can use your cold wallet to hold your cryptocurrencies for the long term, without worrying about the need to constantly monitor and update your hot wallet.
In my opinion, the way you can make things offline will be as important as adding another layer of security. When everything is in clouds or web, you are always a potential victim!
Weak Sides of Ledger Exist
I think we must consider 2 possible risks: physical theft or damage. It is therefore important to take steps to ensure the safety and security of your cold wallet, such as keeping it in a secure location and regularly backing up your wallet.
You may also be more anxious about the risk of phsical theft. Actually, as long as you know the 24 words of your Ledger, nothing to worry about. You can buy another Ledger and use the same words to keep using the same wallet and crypto balance! Another layer of security :)
Overall, the use of cold wallets is an essential part of any cryptocurrency strategy. By providing an additional layer of security, protecting against potential losses, and offering convenience, Ledger, Trezor and a couple of other cold wallets are valuable tools. Whether you are a beginner or an experienced cryptocurrency user, it is important to consider using a cold wallet to protect your digital assets and ensure their safety and security.
As FTX is insolvent and many other projects are at risk, do not dare to lose all your money because of some famous guys.