The Mt. Gox cryptocurrency hack in 2014 was a massive reality check for the cryptocurrency industry. This event was the first large-scale display of the security concerns that come with handling cryptocurrencies. Since then, a Cold Wallet like Ledger and Trezor have become leading security options for crypto enthusiasts and highly recommended by online casinos like BC GAME.
Online crypto gambling platforms, including BC GAME, take cues from trading security practices. At any time, crypto owners are conscious that someone is waiting for the slightest lapse in concentration to loot their hard-earned funds.
Accordingly, it is necessary to understand the hazards of crypto wallets and the best practices to follow in handling your cryptocurrency.
What Is A Cold Wallet?
Crypto owners store their funds in a crypto wallet. To be more specific, your BTC or other crypto is not in the digital wallet. The funds are always on the blockchain. The wallets store digital keys to those funds in the form of code. The common name for these digital keys is private keys. Cryptocurrency on the blockchain has a public code that identifies the units of coin or token and private keys that determine who controls the crypto.
Therefore, a person who has private keys has control of the cryptocurrency. Hackers target private keys to control and effectively steal your cryptocurrency.
There are two types of crypto wallets. Hot wallets have a constant connection to the internet. In some instances, companies that supply the wallets have a private key backup on their servers. This arrangement can pose an inherent security risk to users.
On the other hand, cold wallets do not have a connection to the internet. They come in the form of removable disks that can be disconnected and be completely offline. A user has exclusive control of their private keys. These devices are very secure and virtually impossible to hack. Wallet owners can view their crypto holdings without connection to a computer or the internet.
Accordingly, cold wallets are ideal for storing large amounts of crypto for the long term. It is like a secure vault where only you have the keys. This quality has made them popular with professional crypto investors wary about events like hacks. Hot wallets work with smaller deposits where one needs quick access to make trades. One can have a hot and cold wallet to serve their individual storage needs while navigating the crypto space.
Cold Wallet : Ledger
Ledger wallets are the product of a French company called Ledger. Their hardware wallets are some of the most reliable in the entire industry. The two flagship Ledger wallets are the Ledger Nano X, and the Nano S. Ledger Nano S came first as a cold wallet with a micro PC and its OS called “Blockchain Open Ledger Operating System” BOLOS. It connects to a computer through a USB Cable and offers fantastic security.
The Ledger Nano X launched about three years later and is more advanced than its predecessor. The Nano X is more compatible with mobile devices and offers Bluetooth and USB-C compatibility. Ledger Nano X now offers 1.8 Mb in storage capacity and a battery life of 100 mAh. Its screen of (128×64) is decent and offers. Owing to its advanced features, it is more expensive than the Ledger Nano S. You should find one for about $119, and this is a small cost relative to the threat of losing funds in a devastating hack.
The first Trezor wallets came into the market around 2014. They proved an instant hit with crypto enthusiasts because of the superior security infrastructure to hot wallets. It comes from a Czech company and is available globally through direct orders or the hundreds of retailers across the globe.
Trezor Model T is the flagship version of this wallet service. It offers advanced features and allows a person to store all significant cryptocurrencies securely. One may have to part with a $160 price tag, but this cost is well worth it.
Trezor does not have a mobile app yet. Notably, the company plans to introduce one in 2021 for better customer service.
Which Is Better?
For the record, picking either of the two would still place you in a very secure position. Both these wallets offer easy navigation and a display screen. Trezor has a larger display, which is more convenient. Additionally, Trezor features a color display which makes for better aesthetics.
Both display the seed phrase and allow owners to send crypto easily. Trezor may have a definite edge in ease of use due to its color touchscreen but comes at a higher cost. Ledger Nano X tried to make up for the shortfall by introducing more space between the two physical buttons. It also has brought better smartphone compatibility, which places it at a competitive advantage. One could argue that Ledger Nano X came about to catch up to impressive features that Trezor had introduced to this sector.
Either way, their elite features are impressive and the essence of wallet security. A crypto owner should balance the elements a specific wallet offers and its price to determine what works best for them.
The Big Picture
Ultimately, picking a cold wallet is a no-brainer especially if you are an active crypto player constantly accessing Bitcoin casinos like BC GAME. They are superior in security, and this is the most vital aspect of crypto storage.
Trezor and Ledger provide a unique function in the market, and their popularity is understandable.
Hot wallets offer better compatibility with trading platforms but are inherently vulnerable. Take time to analyze these cold wallets to find your best fit.