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Crypto Comics – What is Cold Wallet

I tried to explain what Cold Wallet is in comic strips.

TL;DR

I explained what a Cold Wallet is and how it will be used in a particular situation.

Some Takeaway

Wallet in crypto terms is essentially a digital bank account for your cryptocurrency. While the cold wallet is a type of wallet that does not connect to the internet. It refers to a certain type of security measure to disconnect your wallet from the internet to prevent any hacking. As much as your financial information is publicly available on the blockchain, one can potentially harm your asset through various methods to steal your cryptocurrency away. Thus, a cold wallet is considered a more secure storage option for your digital assets to stay away from potential attacks.           

Private Key

The private key is your bank account password. A cold wallet is to hide your private key as much as possible in a secure place. It is better to avoid accidentally sharing your private key online, one can prevent the private key from ever showing on the internet by disconnecting from it or writing on a piece of paper.   

Paper Wallet

A paper wallet is thus a piece of paper that records your private key. It does not refer to the type of material that a physical wallet is used for. It refers to a way to keep your private key away from strangers.        

Hardware Wallet

Another method to secure your cryptocurrency is to have a USB-like hardware wallet to store your private key. You can again disconnect it from the internet while accessing your cryptocurrency.

Maintenance of Wallet

Many people believe their wallets can always be secure. They forget that wallets need maintenance. Even if your wallet is a cold wallet, you want to make sure the software is updated and or your paper wallet has a good quality of paper to have a readable private key. That is why you will have to frequently check your wallet offline and make sure they work.

In conclusion

A wallet is essential for cryptocurrency. Choosing a type of wallet will impact how secure your cryptocurrency wants to be.

Check out my other article

Crypto Comics – What is Aping

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