A cold storage wallet hardware wallet is a highly secure device not connected directly to the internet, that allows for the safe storage of cryptocurrency assets. These devices connect to your computer or smartphone either via USB or bluetooth connection, but block unwanted access behind a secure element.
Seed phrases are generated by the wallet itself, and all private keys for each individual asset type are stored within the wallet.
Hardware wallets typically come equipped with an LED screen that prompts users to verify transactions and addresses before sending them.
It is imperative that any hardware wallets are purchased directly from the manufacturer or an authorized reseller to ensure there has been no tampering. If for any reason the wallet comes with a seed phrase already generated, return it immediately.
Examples of Cold Storage Hardware Wallets
Popular examples of hardware wallets include the Ledger Nano X, Ledger Nano S, Trezor Model T, KeepKey, and more.
How To Use a Cold Storage Hardware Wallet To Store Cryptocurrency
Be certain any hardware wallet is fully charged before using it. Boot up the device itself and the device you intend to connect it to. Connect the hardware wallet to your smartphone or computer following the manufacturer’s instructions.
Once a connection is established, applications specific for each asset may need to be installed. Firmware updates may also be required to ensure the wallet’s software is the latest and most secure.
How To Use a Cold Storage Hardware Wallet To Receive Cryptocurrency
After all necessary applications and firmware updates are installed, follow the device’s prompts to receive cryptocurrency.
A wallet address will be generated on the device’s screen and/or on the connected computer or smartphone. This address is what you will need to provide to the sender of whom you expect to receive cryptocurrency from.
If you are sending crypto from another wallet you own, this address will act as your cold storage hardware wallet’s address specifically.
Depending on the hardware and related software, you may receive a notification when cryptocurrency arrives in the account. Some cryptocurrencies like Bitcoin require a minimum number of confirmations before it is available in the account.
How To Use a Cold Storage Hardware Wallet To Send Cryptocurrency
Follow the devices or on-screen computer or smartphone prompts to initiate sending cryptocurrencies.
Request an address from the receiver, copy and paste an address, or scan a QR code depending on the technology being utilized.
Be certain to double check that all address characters are correctly entered, and only send the corresponding cryptocurrency to the correct address. For example, only send Bitcoin to a BTC address. Sending Bitcoin to a RIpple address, for example, could result in loss of funds.
Finally, enter an amount to send, confirm the fees, and complete the transaction.