Is cold wallet better

[sunsilk]

The cold wallet or the hardware wallet does not need to get infect before clipboard malware will do its work because the address would have changed on the online device like phone or computer to a hacker's address.

Like FMC said, it's going to require a manual check and confirmation before a transaction happens even if the user's computer is infected.

So if a user is diligent enough and always checks the receiving address quite carefully, he'll know that it's not the actual address he should send to.

I'm not sure about hardware wallets that have firmware updates, in technical aspect the hackers can go beyond that and penetrate through a firmware update if there's a loophole that they can abuse although I haven't heard this has happened.

[Z-tight]

Ohh so with two different devices from different manufacturers can make multisig settings? So that to send coins there must be a co-signer from both devices?

Maybe you can share a thread or article where to create a multisig setup with two devices of different brands.

A multi-sig wallet should never be set up in a single device in the first place, it completely defeats the purpose for setting one up, which is to eliminate a single point of failure. It is best practice to distribute keys across different devices and if you want to use different hardware wallets, or a hardware wallet and a software wallet like Electrum, then that is also fine, with each acting as a cosigner.

What is important is to back up your seed phrases separately and keep them very secure.

[Gost ms]

Cold wallets are not usually used by everyone. Cold wallets provide much more security than hot wallets. Cold wallets are used by large companies or by individuals who have invested a lot of money in Bitcoin. So when everyone invests a lot of money or reaches the goal of investment, they use cold wallets. However, it is completely a person's personal decision which wallet to use.

Without breaking the cold wallet, you will be able to see very clearly how much Bitcoin or how much Dollar is in the wallet. However, you will have to calculate whether your investment is making a profit or losing money. You will be able to find out very easily from this website.blockchain.com

[BIT-BENDER]

Of course, electrum cold storage wallet is good and very safe because you did the set up yourself. When generating the private keys it should be in an airgapped device and stays offline forever. You need a watch only wallet which can be a hot wallet to monitor, sign and verify transactions. I prefer this to a hardware wallet based on my own reasons.

Keeping your seed phrase safe is very important which is why you should make three duplicates and store them in three different locations far from each other. Same should apply to your passphrase. Keep your passphrase in a different place from your seedphrase.

I Also like electrum cold wallet storage, it is safe and very practical. I think anyone that one to set up the electrum cold wallet storage should search it out on the forum there are many step by step guide on how to set it up.
For me anything that has to do with wallet set up you should not get it wrong because it could be very risky.

[Joy- maker]

Cold wallets are actually good for long term storage, why because your cryptocurrencies will be protected from hackers and from online attacks since your seed phrase and your coins are to  be stored offline. And Sincerely speaking Cold wallets give you full control over your coins, it's just as if you are keeping your cryptocurrencies in a secure storage at home. And what i like about cold wallets is the fact they are not connected to the internet. you can only connect them to your device only when you want to make use of them at that time, and after making use of them  you disconnect them from your device and them back to your safe place.

[Z-tight]

Without breaking the cold wallet, you will be able to see very clearly how much Bitcoin or how much Dollar is in the wallet.

What does this mean bro?

And Sincerely speaking Cold wallets give you full control over your coins,

Self custodial wallets give your control over your funds, simply because you have the seed phrase. Cold wallets store your funds offline, away from the internet and gives you better security.

you can only connect them to your device only when you want to make use of them at that time, and after making use of them  you disconnect them from your device and them back to your safe place.

That's why you're better off using an airgapped wallet. Because anything connected to the internet, even briefly, as you describe it, is prone to hacking. In an airgapped wallet, your device is never connected to the internet.

[nakamura12]

I know this to be a very good alternative that anyone who does not want a hardware wallet but I have never made comparison. Hence, I would love to know some of the things that made you think that it is better than hardware wallet which I believe is the safest method of storing Bitcoin.

It's a best choice if a person doesn't want to spend money to buy hardware wallet or doesn't have the funds to buy hardware wallet that's why cold wallet is the best for security since it won't be connected to the internet and hot wallet for daily transactions like when a person is in trading or some services which needs the owner to do something with the funds. I think one of the reasons is that you can view it using watch only where you don't need to access the wallet.

[promise444c5]

Cold wallets are not usually used by everyone. Cold wallets provide much more security than hot wallets. Cold wallets are used by large companies or by individuals who have invested a lot of money in Bitcoin. So when everyone invests a lot of money or reaches the goal of investment, they use cold wallets. However, it is completely a person's personal decision which wallet to use.

The phrase "a lot of money" can only be accurately described by individuals according to their status..
Now that you said, "Cold wallets are used by large companies or by individuals who have invested a lot of money," what happens to the "not a lot of money yet"? Should it be risked with hot wallets? .

My point is that anyone can set up a cold storage, it’s not a luxury club thing. The device that will be used is just a secondary factor..that is where air-gapped devices come in.

No matter the value, you can set up a cold storage, but most minimum choices range from a hundred bucks and above.

Without breaking the cold wallet, you will be able to see very clearly how much Bitcoin or how much Dollar is in the wallet. However, you will have to calculate whether your investment is making a profit or losing money. You will be able to find out very easily from this website.blockchain.com (https://www.blockchain.com/explorer)

You mean live tracking of you wallet details?
Just use a watch only wallet to get updates, initiate and also broadcast transaction if possible with the choice of wallet software..

[satscraper]

ago w

Two hardware wallets are better than one if the come from different manufacturers.

You may ask why. With two hardware wallets you can create the multisig setup in which both devices act as cosigners. This setup is more secure than relying on single hardware wallet.The single device can be compromised ^{even through the vulnerability coming from developer's side, release of firmware with backdoor for instance} but the probability of both devices being compromised simultaneously is far lower.

Ohh so with two different devices from different manufacturers can make multisig settings? So that to send coins there must be a co-signer from both devices?

Maybe you can share a thread or article where to create a multisig setup with two devices of different brands.

Sure, I can point you to the thread I opened two years ago that explains how to set up 2-of-2 multisig wallet in Sparrow which coordinates signing. In my example one cosigner is Passport Core hardware wallet and the other is BIP39 compatible software wallet. You can swap the software wallet for another hardware wallet or add it as the third cosigner to form 2‑of‑3 quorum which adds extra security to 2-of-2 multisig setup.

[Sabih7]

Its better to change your topic name. Its shows like a question but when i read you explain everything about the wallet and that's why you have to put a full stop at the end and remove " Is" from the start so that other don't waste time here in reading.

[Zigabel]

The challenge of losing the device of storage which referred to as cold wallet is one that isn't often spoken about, some of this devices are not elaborate and so big, they are mostly portable such that you can always carry it around which means you may drop it somewhere someday, whether you are careless or not, you may mistakenly drop the device at a time you do not know and that can cost you the whole money you had in it. One other form of security I would love to talk about is that for the cold storage device, after l the seed phrase protection and the password and all of that? Make sure to have your device in a very safe place that it doesn't get stolen neither you loose it, so that you will be able to still maintain ownership and have access to your funds when you need it.

[Furball808]

Cold wallets are definitely the best especially if you want to hold for a long time. This will allow you to not be able to touch your funds even if you wanted to because it is not easy compared to if you have your funds stored somewhere connected to the internet. It also is preferable if you are holding huge amounts of bitcoin to store cold wallets.

[Z-tight]

This will allow you to not be able to touch your funds even if you wanted to because it is not easy compared to if you have your funds stored somewhere connected to the internet.

Lol, while i kind of get your point, i am not sure i would add this as one of the reasons of using a cold wallet. It only takes a few steps to move funds out of either your airgapped wallet or your hardware wallet. It is not the most difficult thing to do in the world, lol.

they are mostly portable such that you can always carry it around which means you may drop it somewhere someday, whether you are careless or not, you may mistakenly drop the device at a time you do not know and that can cost you the whole money you had in it.

Lol, why would you have to carry your hardware wallet everywhere you go, there is no sense or point in doing that. If your device gets stolen or you lose it in your house, then you can recover your funds with your seed phrase and immediately move it into another address.

[dkbit98]

Generally speaking cold wallets should be safer than hot wallets, but not all of them are better or more secure.
Than you also need to think if you are using wallets daily for sending transactions, or for long term holding.
Hot wallets are better for lower amounts, installed on phones for quick send and receive of coins.

[Mhizlove]

When it comes to cold wallets it's very effective because of how they keep crypto online, very far from hackers and from cyber attacks. You see the real safety isn't just the device rather it's how well you protect your recovery statement that matters because if your device gets lost or stolen your funds or money will still be safe with the statements.

Also remember that this requires you to be disciplined because is not as that convenience as software wallets, but still yet there are people who still maintain long term investment. And lastly cold wallets do give you the control over it and confidence over your funds.

[Juanas Orta]

safe enough for people who don't.have money to buy hardware wallet.

[Free Market Capitalist]

So it is difficult to loose funds from a cold wallet then.

Most of us regulars on the forum have been using cold wallets for years and haven't had any problems.

This still depends on the type of hardware wallet or the software wallet it is connected to, one thing that is certain is that private keys and seed phrase on hardware wallets cannot be accessed or generally it the hardware wallet itself cannot be infected directly from the virus or malware on the device it is connected to, but there is a chance of keylogger can be used to detect what you’re typing if the hardware wallet uses the device keyboard example of such wallet I can recall is Trezor One and not it’s personal keyboard. So if the hardware wallet is like this then information can be stolen. But aside this I don’t actually see how hardware wallet can get infected from an infected device.

I think so. If OP wants maximum security air-gapped wallets are better but HW are generally fine despite the mentioned potential risks.

[goldphysicalbitcoin]

Any wallet whose private key never comes into contact with the internet is called a cold wallet. Whether it's a paper wallet, a hardware wallet, or a wallet with the private key engraved on a steel plate, it's crucial to never reveal your mnemonic phrase or private key, and to take extra precautions to secure connected devices when performing online operations. This is my homemade tungsten steel cold wallet, which I've used for 10 years (now I don't use it anymore, just as a memento):

[KiaKia]

Cold wallet is different from airgapped and I will always choose the latter.

Example of cold wallets are Ledger nano, Trezor and Tangem.
The problems I have with them is the needy to connect to the computer via USB connection, airgapped wallets are not like that, and security wise airgapped wallets are better.

Airgapped hardware wallets uses QR codes and SD cards.
Airgapped wallet is better.

[Eclipse01]

Cold wallet is different from airgapped and I will always choose the latter.

Example of cold wallets are Ledger nano, Trezor and Tangem.
The problems I have with them is the needy to connect to the computer via USB connection, airgapped wallets are not like that, and security wise airgapped wallets are better.

Airgapped hardware wallets uses QR codes and SD cards.
Airgapped wallet is better.

Wow this is news to me, so airgapped wallets are different from cold wallet? But I thought cold wallets are wallets that uses hardware devices to store your coins, without needing the internet, so how is it exactly different from airgapped wallets setup