Login Register

What is a Cold Wallet?

 

What is a Cryptocurrency Wallet?


A cryptocurrency
 wallet, or digital wallet, is simply defined as an application that manages public and private keys. The most popular of the crypto money wallets is known as
the Bitcoin
 wallet. In order to buy and sell cryptocurrencies, a crypto money wallet is needed. The purpose of producing crypto money wallets is not to keep crypto coins in them, but to store the secret keys required to provide access to crypto coins. In other words, the wallet does not actually store digital coins, but data proving the existence of these coins. Secret and public keys are used to access deposits within the account or to send money to a different account. If you do not have the public and private key, it is not possible to make transactions with the deposits in the account. These keys are bound together by special encryption standards. It is possible to access public key data with private key information, but it is not possible to access secret key information with public key information. According to the online and offline characteristics of crypto money wallets, they are classified as Hot Wallet and Cold Wallet. Hot wallets; mobile wallets are divided into desktop wallets and online wallets. Cold wallets are; paper wallets and hardware wallets.
 

What is a Cold Wallet?

A Bitcoin cold wallet is called an offline wallet used to store Bitcoin and other altcoins. They are physical, electronic devices, hardware wallets that use random number generators to generate public and private keys. Paper wallets are physical documents on which a public or secret key is placed in the form of a QR code. Cold wallets do not have an internet connection, making the wallet more resilient to cyber attacks, unauthorized access, and other vulnerabilities.  Balances in cold wallets can only be accessed by people who know the private key. In this sense, the account holder should not share the secret key code specially given to him with another person. In addition, care must be taken not to lose the private key with the shared code. 

The Bitcoin cold wallet is recommended for long-term investors and investors who want to store  larger amounts. For daily transactions and to hold small amounts of Bitcoin, it is recommended to use hot wallets.

 

What Is RWA in Crypto?
RWA means Real World Asset in crypto. It refers to physical or traditional financial assets made digital and available on blockchains. Imagine owning part of a building, a bond or a piece of artwork through crypto tokens. That simple step merges real-world value with DeFi innovation. These assets have become a hot topic in DeFi because they bring fresh use cases to the space. They let you access things...
Solana Staking ETF, a First in the US, Now Available for Trading - Ripple Applies for US Banking License
Solana Staking ETF, First in the US, Opens for Trading The REX-Osprey Solana + Staking ETF (SSK), developed in collaboration with REX Shares and Osprey Funds, has become the first crypto staking ETF to start trading in the US. The fund, which started trading at $ 25.47 on the Cboe exchange, offers investors both exposure to the Solana (SOL) price and the opportunity to earn staking returns on the Solana...
Grayscale’s Mixed Crypto ETF Gets SEC Approval – SEC Plans to Speed Up Crypto ETF Process
SEC Approval for Grayscale’s Mixed Crypto ETF The U.S. Securities and Exchange Commission (SEC) has “expedited” approval for Grayscale’s Digital Large Cap Fund, which is comprised of 80% Bitcoin, 11% Ethereum, and the rest altcoins like Solana, Cardano, and XRP, to convert into a spot ETF. The fund, which currently trades over-the-counter (OTC), will now be available for exchange-trading. The move...
First Solana ETF with Stake Rewards Coming to the US - Robinhood Expands Crypto Move with ETH-SOL Staking and Tokenized Shares
First Solana ETF with Staking Rewards Coming to the US Rex Shares and Osprey Funds are preparing to launch the first US ETF that offers direct exposure to Solana and staking rewards. The fund, announced as the “Rex-Osprey Solana + Staking ETF,” will hold SOL assets through a subsidiary in the Cayman Islands and aim to generate returns by staking at least 50% of those assets. Unlike traditional spot...
What is the Travel Rule?
With the introduction of crypto assets into our lives, many habits in the financial system are changing. However, these new technologies also bring some risks. Anonymous transactions, uncontrolled money transfers, and regulatory gaps. This is exactly where the “Travel Rule” comes into play. Developed to increase transparency in financial transactions and prevent illegal activities, this rule is starting...


Create an account

Now create an account where you can use your knowledge.
SIGN UP