Securely managing digital assets like bitcoin, or an Ethereum token is not trivial. Even the most diligent token holders prefer to use a tool. This article explains why D’CENT Wallets are the most convenient cold storage devices on the market.
D’CENT Wallets take the pain and worry out of owning cryptocurrency. That is because the devices use biometrics to securely authorize transactions. These fingerprint sensing hardware wallets are the most convenient cold storage solution on the market.
Cold Storage
A cold storage solution prevents unauthorized network access to your digital assets. Cold storage solutions are, therefore, not directly connected to the Internet. A digital asset management solution with an Internet connection is constantly under threat.
One way to remove the threats that come with Internet connectivity is to use a paper wallet. Securely managing one Bitcoin paper wallet that you secretly stash somewhere at home seems somewhat doable. The reality is different.
Paper Wallets
Nowadays, paper wallets are an unsophisticated, old school approach to managing digital assets. Paper wallets may have worked for some folks in 2011 when Bitcoin usage (transactions) meaningfully spiked. However, with the number of coins and tokens in circulation rapidly proliferating, paper wallets are somewhat cumbersome to use on a daily basis for even the most modest digital asset portfolio.
Paper wallets often feature QR codes so that you don’t have to manually enter your private key to authorize a transaction. The QR code is a graphic representation of your private key.
A private key is essentially a hash that functions as a password. It must be used to initiate a transaction. If you lose your private key, you lose your digital assets. That is because you no longer have the ability to initiate a transaction.
Paper wallets are a decent low tech solution. They certainly aren’t convenient. That’s because the private keys must first be generated securely [1]. Additionally, the paper wallet has to be securely printed and stored.
Every step of the way, the safe implementation of a paper wallet is vulnerable to human error. That makes paper wallets intractable for cryptocurrency aficionados without computer science or engineering degrees.
From the perspective of cold storage solutions, the safe and easy alternative to a paper wallet is a hardware wallet.
Hardware Wallets
D’CENT Wallets are hardware wallets. These cold storage devices are the antithesis of a paper wallet. Hardware wallets are all high tech.
Hardware wallets are not directly connected to the Internet. D’CENT Wallets use sophisticated Secure Element (SE) technology to securely store sensitive information and mitigate network threats.
All operations in D’CENT Wallets are safely executed in our Secure OS. The Secure OS manages the hardware wallet’s operations. It turns the initiation of a transaction into a trivial flick of an authenticated finger, and this dramatically reduces the possibility of human error.
Most importantly, D’CENT Wallets do not limit you to the management of just one digital asset. A different paper wallet must be used for every different digital asset you acquire. For example, you need a Bitcoin paper wallet for your Bitcoin public and private keys. Then you need an Ethereum paper wallet for your Ethereum public and private keys. If you were managing 50 different assets, initiating a transaction means shuffling through a stack of paper wallets as you would a deck of cards.
D’CENT Wallets allow you to store multiple assets in one easy-to-use device.
Hot Wallets
Not using a cold storage solution, like über convenient D’CENT Wallets, is simply not wise. Many people are content with using the wallets on their mobile phones. These kinds of wallets are called hot wallets because they are on devices directly connected to the Internet and subject to malware and other increasingly sophisticated threats.
Hot wallets are popular. Their popularity has led many people to believe that the hot wallets on their mobile phones are secure. Nothing could be further from the truth.
According to data from the FTC in the United States of America, in one month alone 2,658 incidents of mobile phone account hijacking were reported. These data only enumerate one type of attack that mobile hot wallets are subject to.
Conclusion
It is challenging to modify human behavior. We all fall into habits. People are used to the convenience of mobile phones and making the crucial switch to secure cold storage solutions requires some effort.
Fortunately, there are D’CENT Wallets out there to make this critical behavioral transition smoother. The freedom to manage digital assets comes with responsibilities. Banks and mobile phone operators have no power. They cannot secure digital asset wealth or reverse transactions.
In the cryptocurrency world, cold storage solutions are the final refuge. Choose your digital asset management tools wisely.
[1] It is important to know where to go to securely generate your keys as well. Some sites are not safe. According to Coin Telegraph one such unsafe website issued copies of the private keys.
This is the first in a series of blog articles that introduce the benefits of D’CENT Wallets. Stay tuned and please subscribe to the following channels:
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To purchase one of our innovative wallets, please visit https://dcentwallet.com.
