Is a Cold Wallet really safe? Comparison and evaluation of three hardware wallets.

Recently, my frens have been in an uproar—someone was robbed of 300,000 at the exchange, and someone else forgot their mnemonic phrase and permanently lost their assets. At this time, everyone remembered something called a “Cold Wallet.”

To be honest, the difference between a Cold Wallet and a Hot Wallet is like putting money in a safe at home vs carrying it around in your wallet. One is secure but inconvenient, while the other is convenient but easy to lose.

What is a Cold Wallet?

In simple terms, Cold Wallet = a device for offline storage of private keys. It is not connected to the internet, making it immune to remote attacks by hackers. Your public key (address) can be publicly used to receive coins, while the private key (password) is securely stored offline in the device. There is also a mnemonic phrase (usually 12 or 24 words), which serves as a backup key for the private key.

The operation principle involves two steps:

1. Generate Public and Private Key Pair — The device generates a pair of keys using cryptographic algorithms.
2. Physical Isolation Storage — Private keys never come into contact with the network

The 3 Hottest Hardware Wallets on the Market

According to predictions from research institutions, the hardware wallet market will reach 3.6 billion USD by 2032, and competition is becoming increasingly fierce. Here are the three most popular models currently:

imKey

• Developed by the imToken team, security certification CC EAL 6+
• Ultra compact (8.1g), supports 100+ kinds of virtual currencies
• Price: about 130 USD

Ledger Nano

• French brand, certification level CC EAL 5+
• Supports 5000+ cryptocurrencies, can connect via Bluetooth
• Price: 150-300 USD

Trezor

• Made in Czech Republic, supporting 1400+ cryptocurrencies
• Has a touch screen function, the lightest (12 grams)
• Price: 70-219 USD

How to choose without falling into pitfalls?

When choosing a Cold Wallet, you mainly look at four dimensions:

Security — Strong encryption algorithms, multi-factor authentication, anti-hacking

Compatibility — Ensure support for the virtual currency varieties you hold.

Cost — Ranges from $50 to $500, aiming for cost-performance ratio.

Usability — A user-friendly interface is essential for long-term use.

Three Key Steps to Using a Cold Wallet

1. Signature Authorization — Connect the device, enter the PIN to unlock, and initiate the transaction.
2. Verify Transaction — Confirm transaction details on the device.
3. Proper storage — Backup your private key and mnemonic phrase to paper or a USB drive, and place it in a safe.

⚠️ Never connect your Cold Wallet to unknown DApps, or your defenses will be in vain.

Cold vs Hot: A Table to See Clearly

Conclusion: Use a Cold Wallet for large amounts or long-term holding, and a Hot Wallet for small amounts or frequent trading. The safest practice is to keep 80% of assets in a Cold Wallet, and 20% in a Hot Wallet for emergencies.

What to do in case of an emergency?

Wallet lost or damaged — As long as the private key or mnemonic phrase is not leaked, buy a new Wallet to recover the assets.

Forget the mnemonic phrase — Then it's over, you can't recover it. So be sure to back it up on paper and store it in a safe.

Hacked or scammed — Ensure offline usage, do not store private keys online, be wary of unknown airdrops.