Hello guys and a big welcome back today on this platform, I hope your day is going well. So far this month has been a really an unstable one to the crypto traders, alot of dips and Downtrend movement in crypto currency value. All we can just hope for at this point is a bounce back in value.

Without watering much of our time I would like us to discuss a term in crypto-currency. A term which has helped us enhance the storage of our crypto-currencies. Ladies and Gentlemen, the concept of "Cold Wallets".

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The Concept: COLD WALLETS

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Anything that serves as a means of exchange is a valuable and as such, the need to store these valuables drives individuals to provide means for effective and efficient storage. Money as a valuable can be stored in banks, wallets or more securely to store for the future; a safe turns the surest and most effective.

On the development of digital currency which later turned into a generally acceptable means of exchange, the need to store these valuables arose and first of all they were stored on the Interfaces of the application they were purchased with, for example CEXs like binance and DEXs with io as an example.

But the increase of cyber crime emerged the need to store these valuable assets away from reach, a medium of storing them offline was invented. This brings us to the topic of this post "Cold Wallets".

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Definition Of Cold Wallets.

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Cold Wallets are in a nutshell hardware devices that serves as a medium for storing digital currencies offline.

These devices have one feature that makes it's security top notch, they are usually peripheral devices that can only be inserted it detached at will. This makes these devices highly impenetrable and these devices do not lose it's quality, a standard Cold Wallet USB device can be gotten at a rate of 100$ to 200$ and even above to show just how affordable it is and these devices can last up to 20 to 40 years of usage if properly handled.

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Some advantage of Cold Wallets

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As mentioned earlier, it is the best thing that has happened to crypto-currency storage because of it's ability to store crypto data away.

It's portable nature makes it really mobile and can be carried to almost every by simply attaching it to you body or suitcase unlike the ones in our phones and laptops that has to be locked and protected at all times.

Due to the fact that it is detachable at will, our tokens can never get lost more stolen except it the device gets into the wrong hands, this makes Cold Wallets have some sort of reliability.

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Disadvantages Of Cold Wallets

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Although the introduction of cold wallets have brought about efficiency in storage, it also has some disadvantages which should be looked into;

Cold Wallets are usually the best for long term storage. They are not advised go be used frequently as they might be exposed to damage or virus corruption.

They are somewhat scarce and quite more expensive to purchase than hot wallets. Hot wallets are simply wallets that make use of the internet for operation. They are the software applications found in your device and as such require no extra cost to purchase. This makes hot wallets more used popularly than cold wallets.

Cold Wallet invention has made token owners feel to relaxed in terms of security and when these Cold Wallet USB devices eventually get into wrong hands, there is high probability of one loosing all his currency forever since the Cold Wallet device location cannot be tracked.

It requires alot of protocols just to check on it from time to time and as such require high knowledge, skill and expertise on its usage to avoid unexpected errors or mistake unlike your hot wallets in your phone where you just have to go into you're wakey directly through the app.

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Conclusion

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The introduction of these Cold Wallets had generally been more efficient only during long term storage and so, got wallets eg binance applications in our phone remains more efficient and widely used in crypto activities since you can check in on your wallets from time to time with ease.

Cold Wallet as a storage unit has not doubt made our crypto data handier since it has been made hardware and offline accessible. This Terminology/concept upon introduction has made crypto-currency trading a confidential market.

Thanks for reading through my article, do have a nice day ahead ♨️.