How to safely switch from hot wallets to cold
As the owner of digital assets, you probably know the concept of a hot wallet and cold storage. While hot wallets offer comfort and easy use, they also introduce risks that can endanger your active safety. In this article, we will help you safely switch from the hot wallets to the cold.
Understanding hot wallets
Hot wallets are digital wallets that allow users to store and manage cryptocurrencies such as Bitcoin, Ethereum or Litecoin. They provide immediate access to the means and are vulnerable to hacking if it is not properly secured. The usual types of hot wallets are:
- Software wallets (eg Metamk)
- Hardware wallets (eg ledger, trezor)
- Mobile wallets (eg Coinbase purse)
hot wallet risks
Hot wallet hacks can cause significant financial losses for users who are becoming victims of these attacks. Some common risks are:
1
Phishing scam : Fraudsters pretend to be the owner’s cryptocurrency and require access to their hot wallet.
- Main Recovery Attacks : Hackers access the user hot wallet, breaking a password or private key.
3
malicious software infections
: Malware can compromise the user hot wallet, allowing hackers to steal funds.
Benefits of cold storage
Cold storage involves storing cryptocurrencies offline, safe use of a device that requires physical access to access and manage funds. This approach offers several benefits:
1
Security : Cold storage devices are less vulnerable to hacking and phishing.
- Consistency : When user funds are securely stored in the cold wallet, they can be accessed consistently without worrying about hacking.
3
Limited Risk Effect : If the user feels problems with their hot wallet, it may not affect their cryptocurrency portfolio.
How to safely switch from hot wallets to cold
The transition from hot wallets to cold storage requires caution and careful planning:
1
Rate your security situation : Evaluate the risks associated with the current hot wallet setup and assess whether you are enough protected.
- Select a safe cold memory device : Select a reputable, high -quality cold memory device that fits your needs and budget. Consider factors like:
* Physical safety
* Encryption methods (eg, 2 factor authentication)
* Hardware strength (eg, USB -based devices)
3
Use strong passwords and enable two -factor authentication
: Protect the cold wallet with strong, unique passwords and consider the possibility of two factors authentication enable the additional security layer.
4
Safely store private keys : Make sure you store your private key in a safe place, such as hardware wallet or encrypted storage services (eg Electrum).
- Duplicate Cold Wallet Data regularly : Periodically transfer the cryptocurrency to another cold wallet to make sure that if one device is lost or endangered, the funds are still available.
- Supervise your account operation : Keep track of hot and cold purse transactions to determine any suspicious action.
Best practice for cold storage
To further improve safety by moving from hot wallets to the cold:
1
Use a physical safety lock : Safely store a cold wallet in a safe, such as a fireproof box or a safe place.
- Limit access to a cold wallet : Limit who can access your cold wallet and consider using role -based access control devices (RBAC) for additional protection.
3
Monitor transactions at a distance : Keep track of the cold wallet using remote monitoring services (eg blockchain.com).
4
Save software Updated : Regularly update software purses, including operating systems, drivers and cryptocurrency customers.