The Time Is Right: When Should You Switch to a Cold Storage Wallet?

With the increasing adoption of Crypto-assets comes the need to safely and securely store your holdings. Amid reports of more than $1bn worth of crypto stolen, hacked or lost in 2018 there has never been a more important time to switch to a cold storage wallet. But when is the right time to take your holdings offline?

Hot or Cold Storage Wallet: What’s the difference?

If you are new to the crypto space, it is important to differentiate between a hot and cold storage wallet. Put simply, a ‘hot’ wallet is any method or means of storing crypto-assets that has been, or is currently connected to/accessed via the Internet. Most commonly, these are the native wallets provided by exchanges, or smartphone and desktop apps.

Conversely, a cold storage wallet is any means of storage that has never been connected to the online world. These can include wallets installed on air-gapped computers, paper wallets, or hardware devices such as the Secure Wallet.

Why Do I Need a Cold Storage Wallet?

Before we can determine the right time to switch to a cold storage wallet, we must first understand why cold storage is necessary. With the creation of the Blockchain and decentralized networks, you now have the power to control your own finances, without the need for traditional banking and third party financial institutions. However, this also means that securing your assets is your own responsibility.

It is important to acknowledge that storing your assets solely in hot wallets:

• Means you are leaving security up to a third party (again).
• Leaves you open to hackers, both on exchanges and on your own devices.
• Makes you vulnerable to viruses, scams and phishing.
• Could see you lose everything if an exchange shuts down.
• Makes usernames and passwords easily accessible in the case of physical theft of computers and devices.

Put simply: if you don’t hold your coins, you don’t own your coins.

When Should I Make the Switch?

As I am sure you have concluded, moving your assets into a cold storage wallet isn’t just a choice; it’s a necessity. Not only does it give you full control and security over your private keys and encryptions, it ensures you aren’t affected by third party liabilities, rendering it the safest way to store crypto-assets.

So when should you be using a cold storage wallet? Deciding on the right time to move offline really comes down to these fundamental questions:

• How much do you value your investment?
• If you were to lose your crypto-assets, what effect would that have on you now, and their potential value in the future?
• Are you willing to lose your hard-earned money?

As we mentioned earlier, security is now your responsibility. There is no third party responsible if you lose your assets. And whilst many people will leave their assets on exchanges just to ‘get the hang of it’ you are prone to a number of uncontrollable and potentially unforeseeable events.

Therefore, in an ideal world the use of a cold storage wallet should precede the purchase of crypto assets. However we do acknowledge that many people will jump in the deep end before fully understanding their purchases. So we also recommend you should be making the move to a cold storage wallet:

• As soon as you have medium to long-term investments/prospects in your portfolio
• At any point where you determine that the loss of your tokens will have an adverse effect on your investments or economic standing.

The Convenience of a Bank in Your Pocket

Traditionally, using a cold storage wallet has been relatively inefficient. Storing your private keys on a paper wallet may be cheap, but is also viable to physical theft. USB storage devices are convenient if you have access to a computer, however this also means they can be compromised with virus’s and Internet connectivity.

The Secure Wallet, however, solves the current issues with cold storage devices by being:

• The only true cold storage wallet, never connecting directly to a computer or the Internet. Rather, interaction with the Secure Wallet is done wirelessly via a smartphone app, ensuring that all information stored on the card cannot be compromised.
• Ultra portable (the size of a credit card), holding multiple crypto-assets and FIAT currencies.
• Cryptographically protected on the card, the app, and the larger ECOMI ecosystem.
• Fee free to use, with capabilities to store 20+ cryptocurrencies.

Want to get your hands on a Secure Wallet? They’re available right now on our online store, and we’re offering 10% off with free shipping! Check out SecureWallet.shop now and start securing your crypto today!

About ECOMI

ECOMI’s mission is to create the world’s best platform to purchase, trade and collect premium licensed digital collectibles. With user-friendly products and applications, ECOMI delivers the freedom to secure and control your digital assets, data, and cryptocurrencies from one user-friendly interface.

For more information please see the ECOMI Collect Whitepaper or join the community on Telegram, Twitter and Facebook.