If you want to securely store cryptocurrencies, implementing a cold wallet is unavoidable. However, many people may wonder which one to choose or even whether a cold wallet is truly necessary in the first place. This time, we’ll delve into these questions.

Let’s start with the basics of cold wallets. They are tools that allow you to store cryptocurrencies without an internet connection, protecting your assets from hacking and malicious attacks. Many people misunderstand, but the actual cryptocurrencies are not stored directly in the wallet. The assets exist on the blockchain, and what’s stored in the wallet are only the private key and public key pair. It’s the private key that grants access to your assets.

This is where the difference between cold wallets and hot wallets lies. Hot wallets are connected to the internet, making them convenient for daily transactions, but they carry hacking risks. On the other hand, the main reason to recommend cold wallets is that they manage private keys offline. While they cannot directly interact with DApps, they are ideal for long-term holding. If you hold large amounts of assets, a cold wallet is a recommended choice.

So, what are the recommended cold wallets? The Ledger Nano series is overwhelmingly popular. They are about the size of a USB drive and support Bitcoin, Ethereum, Litecoin, and various altcoins. The OLED screen is easy to read, and backup functions are also well-developed.

Next, let’s focus on Trezor. It has a history dating back to 2014 and is one of the early cold wallet options for Bitcoin. Setup takes about 15 to 20 minutes, and it supports managing multiple coins. It features advanced security functions and backup via recovery seed phrases.

SafePal is also a noteworthy option. It has an intuitive interface and multiple security layers. Transactions and transfers can be performed via QR code communication without an internet connection.

To summarize why these are recommended: First, security. Managing private keys offline virtually eliminates threats from malware and hackers. Second, complete ownership. You can fully control your assets without relying on third parties. Third, portability—compact and easy to carry.

However, there are some disadvantages. Executing transactions requires connecting to a separate device, making it more complex than hot wallets. The purchase cost ranges from about $50 to $250. It cannot directly operate DApps, and as a physical device, there is a risk of deterioration over time.

Transferring coins is simple: copy the wallet address, select the correct blockchain network, double-check before sending, and once you confirm the balance update, the transfer is complete.

Regarding hacking risks, while cold wallets are relatively safe, caution is still needed against social engineering attacks such as phishing and pretexting. However, since private keys are encrypted on the hardware, the risk is significantly reduced.

Ultimately, if you hold a large amount of cryptocurrencies, a cold wallet is highly recommended. There are many highly-rated products such as Ledger Nano X, Trezor Model T, SafePal S1, ELLIPAL Titan, CoolWallet Pro, Keystone Pro, and Blockstream Jade. Choosing one that fits your needs and budget will allow you to store your assets securely over the long term.