What are the functions of cold wallets (what types of cold wallets are there)

According to Coindesk, according to a recent study, Bitcoin wallets are currently one of the most popular wallets. But what is the use of a cold wallet? Its main functions are as follows: (1) preventing hacker intrusion; (2) Reduce transaction costs and risks; (3) Safely store Cryptocurrency and other digital assets; (4) Improving financial security and liquidity; (5) Avoiding theft; (6) Protect private keys, mnemonics, or private key signers from fraud by using a password manager; (7) Refrigeration equipment can store all data and encrypt it; (8) Hot plug storage technology can effectively save data of customer accounts and related activities, including Cryptocurrency and NFT assets, on the premise of ensuring the security and stability of user information

What are the types of cold wallets?

According to the classification of cold wallets, they are currently mainly divided into two types. The first type is used to store digital currency or encrypted assets stored externally, the second type is an intelligent hardware wallet and private key management device, and the third type is a secure wallet that can protect user funds from being stolen by hackers; The fourth type is visual security products – hot wallets and contactless security products – that trade by scanning QR codes Cold wallet, also known as multi-purpose wallet or anti-theft coin cold storage. Generally speaking, when there are electronic hard drives, cards, and other files, there will be a password backup device to save the private key and send the information to an offline environment (such as a mobile phone) to generate mnemonics, and then send the data to addresses on the blockchain. This method is different from ordinary wallets. Cold wallets use dual authentication technology and support authentication of multiple physical locations, making it easier and faster for people using cold wallets to obtain various related information Due to the high security and easy tracking characteristics of cold wallets, people often choose to purchase relatively new products, which are not of good quality and are not ideal in price; In addition, if you are not familiar with this product, it is recommended not to directly download the Cold Wallet app to download software, nor to install any plug-in applications to prevent phishing attacks, and so on.