How to choose a Cold Wallet? An article reviewing the top 10 popular Cold Wallets to protect your encryption assets.

Question

In the world of crypto assets, asset security is the most concerning issue for investors. When we talk about "Cold Wallets," many people may still be unfamiliar with the concept, or even mistakenly believe it has nothing to do with their investments. However, Cold Wallets store private keys in a way that is not connected to the internet, effectively preventing hackers from stealing them, making it the ultimate line of defense for protecting digital assets. Offline computers, mobile phones, USB drives, etc., can all be considered Cold Wallets, and even a handwritten notebook with private keys counts. After understanding the meaning of Cold Wallets, let's get back to the point: what are the world-recognized Cold Wallets? This article will review the top ten popular Cold Wallets and delve into their operational principles and usage methods, helping you navigate more safely in the ocean of digital assets.

What is a Cold Wallet?

Investing in Bitcoin requires a Cold Wallet, as a Bitcoin Wallet can store hundreds of Crypto Assets beyond just Bitcoin, hence it is also known as a Crypto Assets Wallet. A Bitcoin Wallet is like your "bank account"; through a Bitcoin Wallet, investors can receive, deposit, and send Bitcoin (BTC) or other crypto assets, such as Ether (ETH).

How to Use a Bitcoin Wallet

Create a Bitcoin Wallet and set a personal password (the password can be used when logging into the Wallet) [≈ Opening a Bank Account]
The wallet will automatically generate a unique Private Key [私鑰 ≈ 銀行卡密碼]
The Wallet will automatically generate a unique public key [public key ≈ bank account]
The Wallet will automatically generate a unique Wallet address [Wallet address ≈ bank card number]

In simple terms, using a Bitcoin Wallet requires proper protection of your Private Key, Public Key, and Wallet address. The Wallet address is similar to your bank card account number, the Public Key is like your bank account, and the Private Key is like your bank card password. Especially the Private Key of the Wallet, to ensure the asset security of the crypto assets, you absolutely must keep the Private Key safe and not disclose it to others.

What is a Cold Wallet mnemonic/seed phrase?

A Bitcoin Cold Wallet converts the "Private Key" (≈ bank card password) of a private account into several common English words through computer algorithms, making it easier for users to remember. This set of English words is called a "Recovery Phrase", which is important information for protecting/recovering a lost Cold Wallet and must be remembered and stored properly.

A mnemonic phrase is generally composed of 12, 15, 18, 21, or 24 English words or phrases, usually consisting of common words that are easy to remember, and there is no distinction between uppercase and lowercase letters.

Mnemonic phrase examples: 1. apple; 2. toilet; 3. sleep; 4. watch; 5. profit; 6. fine; 7. help; 8. dog; 9. together; 10. go; 11. fire; 12. today

How to save Cold Wallet mnemonic words?

Make sure to back up your mnemonic phrases properly; write them down on paper and do not upload them to the internet (e.g., iCloud, email, WhatsApp, LINE, etc.) to prevent theft by hackers.
When copying the mnemonic phrase, you must repeatedly check to confirm that there are no mistakes, because once you copy one or two wrong words, it will be very troublesome and difficult to retrieve the mnemonic phrase later.
You must keep your mnemonic phrase safe; it's best to write it down two or three times on multiple pieces of paper and store them in different locations.

Advantages and Disadvantages of Cold Wallets

The main advantage of a Bitcoin Cold Wallet is that it stores coins in an offline state most of the time, only connecting to the internet during transactions, thereby reducing the risk of being hacked and increasing security.

The disadvantages of a Bitcoin Cold Wallet are: it can be more cumbersome to use a Bitcoin Cold Wallet; forgetting the Cold Wallet password and recovery phrase makes it difficult to retrieve the account. In contrast, exchanges can help users recover their accounts through identity verification (KYC), which may make it easier to prevent account loss. Therefore, both Cold Wallets and Crypto Assets exchanges have their pros and cons, and many long-term investors will have both exchange accounts and Cold Wallets.

What are the world-renowned Cold Wallets?

Here are the 10 most popular Cold Wallets recognized worldwide. New and old users can choose the suitable one according to their needs:

Ledger Wallet

Ledger, a manufacturer of Bitcoin hardware Wallets, is one of the technology leaders in the field of digital currency security, providing reliable hardware for consumers and businesses. Ledger is a Bitcoin hardware Wallet based on smart card technology, offering the highest level of protection with advanced technology, while also being user-friendly and easy to operate.

The Ledger hardware wallet is a multifunctional wallet, a hardware device that securely stores private keys. When checking the wallet and sending transactions, the hardware wallet needs to be used in conjunction with a software wallet. It also supports secure storage of Bitcoin, Ethereum, platform tokens, Zcash, and more. Its project has been open-sourced on GitHub.

Based on its hardware, you can use the software Wallet developed by Ledger or other software wallets, which can be used in conjunction with the Ethereum web wallet MyEtherWallet or the Parity Wallet.

Cobo Wallet

Cobo is committed to creating a one-stop digital asset storage and management platform, aiming to provide users with a safe and reliable storage and payment environment. Currently, the company's business modules include a digital asset wallet that supports Staking - [Cobo Wallet], wallet development for institutions and digital asset custody solutions - [Cobo Custody], and a military-grade secure hardware digital wallet - [Cobo Vault].

Cobo Wallet currently supports over 40 mainstream digital assets, more than 900 tokens, and nearly 20 Staking products; it also supports both cloud wallets and HD wallets, allowing users to freely switch between the two types of wallets to meet different needs.

Trezor Wallet

TREZOR is a high-tech data encryption storage device. This product is made in the Czech Republic, and this brand is recognized in the industry as the earliest, most cautious, and safest encryption storage device, validated by global digital currency players as a reliable brand. The company has an excellent track record and rich software support. TREZOR's security model is based on the principle of zero trust. The zero trust principle assumes that any part of the security system could potentially be successfully attacked.

UKISS Hugware

Launched by Singapore's UKISS Technology, the company has previously served several banks and military enterprises in Singapore. UKISS Hugware boasts leading industry patented technology and is the world's first Cold Wallet without mnemonic phrases. This hardware encryption system consists of two parts: A-Key and R-Key, which serve as the identity authentication key and rescue key, respectively. Hugware generates the master seed based on electrical noise technology and automatically synchronizes and permanently saves between the two devices. If you lose one of the devices, you can restore all data using the other device, adding an extra layer of security.

Hugware has won the "Best Crypto Hardware Wallet in Asia" at the Asia Crypto Expo in Thailand, with a user base spanning Southeast Asia, Europe, and North America, and is particularly favored by new users. In terms of storage capacity, it also demonstrates strong performance; in the UKISS Hub, we can see that Hugware supports over 20 networks and can store tens of thousands of crypto assets offline, as well as documents, NFTs, GameFi, and metaverse-related assets. With continuous development on the backend, we have reason to believe that Hugware can store all data in Web3.

HyperPay Wallet

HyperPay is a four-in-one digital asset Wallet that innovatively combines Custodial Wallet, Self-Custody Wallet, Shared Wallet, and Hardware Wallet into one. Upholding the core philosophy of "safety is the original intention, value-added is the mission," HyperPay is committed to integrating personal finance and mainstream third-party payment platforms. Through continuous technological innovation, it builds a convenient and secure one-stop service platform for digital assets, providing asset custody, wealth management, and payment services for global digital currency users and enterprises, solving all Crypto Assets-related problems with one digital Wallet.

HyperPay's custodial Wallet supports over 43 main chain coins and over 157 mainstream coins, while also offering a rich set of features including wealth management, coin-to-coin trading, fiat trading, instant exchanges, collateralized loans, market tracking, and multi-signature co-management. HyperPay's self-managed Wallet supports 17+ main chain coins such as BTC/ETH/EOS/USDT/LTC/BCH/XRP/HC/TRX/QTUM.

HyperPay Wallet always prioritizes user asset security, providing the highest level of security protection mechanisms. It adopts a cold and hot wallet separation storage solution, with 80% of funds stored offline. Security experts monitor for anomalies 24 hours a day. Additionally, it employs hardware multi-signature withdrawal mechanisms, a seven-layer security protection strategy, dual verification, biometric verification, and two-step authorization mechanisms to comprehensively protect user asset security.

KeepKey Wallet

KeepKey is a hardware Wallet that protects users' Bitcoin, Ethereum, and other digital assets from hackers and thieves. The Private Key is securely stored on the KeepKey and never leaves the device. Users' KeepKey is protected by a PIN code, making it unusable even if it falls into the hands of criminals. The KeepKey's screen displays every digital asset leaving the device, and each transaction must be manually approved using the confirmation button on the KeepKey. If your KeepKey is lost or stolen, you can safely recover your device without affecting the Private Key.

OrientWalt (HTDF) Wallet

The OrientWalt Wallet is a decentralized wallet that supports the storage and trading of multiple coins. It is a tool for managing keys, and after importing the wallet through the Private Key, it allows us to perform all operations such as signing transfers and managing accounts with the help of the wallet. The wallet is responsible for managing pairs of Private Keys and Public Keys, and it also supports multi-key management, allowing multiple wallet accounts to be imported simultaneously. When using the wallet for the first time, you will be prompted to create a wallet password. The wallet password will be used for every transaction, so to ensure asset security, please keep your wallet password safe.

BepalProS Wallet

BEPAL Wallet has been deeply involved in the blockchain field, focusing on blockchain security and asset management, and striving to create a world-class digital asset management service system. It has successfully launched services such as BEPAL Wallet digital asset wallet, BEPALPRO, Q, Touch series security hardware, and BEPALPlus high-end digital asset custody platform. The BEPALPROS series hardware wallets have won multiple awards including "China's Best Hardware Wallet" and "Most Attention-Grabbing Security Hardware in Blockchain."

ELLIPAL Wallet

The ELLIPAL Cold Wallet is an all-in-one mobile trading digital asset cold wallet, dedicated to providing users with a one-stop blockchain entry tool. The APP side offers multi-coin asset management, trading, exchange, as well as market trends, news, application recommendations, and other one-stop services.

Ledger HW.1 Wallet

The Ledger HW.1 multi-signature solution is an abbreviation for "hardware wallet": it is a Bitcoin wallet on a small smart card device, suitable for individual or group use. Due to its minimalist design and enterprise features, the Ledger HW.1 is a wallet suitable for low-budget use. Adjust the professional wallet for enterprise use according to your needs; the Ledger HW.1 is a basic smart card hardware wallet, suitable for professional and team needs, perfect for Bitcoin wallets used for multi-signature transactions. With HW1, you can deposit bitcoins online and make daily payments online.

It is offered in the form of a package of HW.1 (Classic), or 3 packages (HW.1 Multisig) or 10 packages (HW.1 Enterprise). Each package contains one HW.1 chip, one key, and a recovery table. Multisig provides the best PRO benefits, as multisig increases the difficulty of stealing coins since each transaction requires several keys. It can also be used for a Wallet shared by multiple people, where these individuals need quotas to use the coins.

You can use your Ledger on any computer, PC, Mac, or Uzx. It's easy to use, you can directly connect it to the USB port to manage your computer, protect your Bitcoin, and make optimal payments.

Conclusion:

Lastly, I would like to remind investors that when using a Cold Wallet, there are two points to be aware of: First, ensure that the generation of the Private Key is done in an offline state, as this is the only way to be the safest; if it is online, it may be exposed to the network, making such a Cold Wallet unsafe. Second, the software used to generate the Private Key must be reliable; if there are vulnerabilities, the Private Key may be leaked. Only by ensuring that both of these points are addressed can one confidently use the Cold Wallet. Choosing a suitable Cold Wallet and properly safeguarding the Private Key and mnemonic phrase is an important step in protecting your Crypto Assets security.

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