What is a cold storage wallet?

Game of Silks recommends all users research into purchasing a cold storage wallet to better protect their assets on the blockchain. 

What is cold storage?

A cold storage cryptocurrency wallet is a type of wallet that is used to store cryptocurrencies offline. Unlike hot wallets, like MetaMask, which are connected to the internet and can be vulnerable to hacking and cyber-attacks, cold storage wallets are not connected to the internet and are considered to be much more secure. In this guide, we'll take a look at the advantages of using a cold storage cryptocurrency wallet.

Why cold storage?

1. Increased Security: One of the biggest advantages of using a cold storage cryptocurrency wallet is the increased security it provides. Since these wallets are not connected to the internet, they are not susceptible to hacking and cyber-attacks. This means that your Silks digital assets are safe and secure, even if your computer or device is compromised.

2. Better Control Over Private Keys: Cold storage wallets give you complete control over your private keys. Private keys are the codes that are used to access your cryptocurrency holdings. By having control over your private keys, you are the only one who can access your digital assets. This gives you complete control over your assets and eliminates the need for a third-party intermediary.

3. Protection from Malware: Cold storage wallets are also protected from malware. Malware is a type of software that is designed to cause harm to your computer or device. By using a cold storage wallet, you are protected from malware that could steal your private keys and compromise your cryptocurrency holdings.

4. Increased Privacy: Cold storage wallets also provide increased privacy. Since your digital assets are stored offline, they are not susceptible to being tracked or monitored by third-party entities. This means that your transactions and holdings are kept private, giving you added security and peace of mind.

5. Reduced Risk of Human Error: Cold storage wallets also reduce the risk of human error. For example, if you forget your password or misplace your private keys, you can still access your digital assets as long as you have a backup of your private keys stored in a secure location.

Ledger vs. Trezor

Ledger and Trezor are the two most popular brands that offer hardware wallets for storing cryptocurrencies. While both Ledger and Trezor wallets provide similar functionality, there are some key differences between the two.

       Ledger Nano X                                                                                                                             Trezor

1. Design: One of the most noticeable differences between Ledger and Trezor wallets is the design. Ledger wallets are compact and have a sleek design, while Trezor wallets have a bulkier, more robust look. The design of the wallet can also impact its portability and ease of use.

2. Screen: Another difference between Ledger and Trezor wallets is the screen. Ledger wallets have a small screen that allows you to view your transactions, while Trezor wallets have a larger screen that provides a more user-friendly interface.

3. Security: Both Ledger and Trezor wallets use a secure chip to store your private keys and are considered to be highly secure. However, Trezor has a unique feature called a "passphrase" that allows you to add an extra layer of security to your wallet.

4. Compatibility: Ledger wallets are compatible with a wider range of cryptocurrencies compared to Trezor wallets. If you're looking to store a large number of different cryptocurrencies, a Ledger wallet may be a better option.

5. Price: The cost of Ledger and Trezor wallets can vary depending on the model and features. However, in general, Trezor wallets tend to be more expensive compared to Ledger wallets.