Pros And Cons Of Storing Cryptocurrencies In Cold Storage
Although Cold Storage is an amazing method to secure your cryptocurrencies, nothing is perfectly created with no flaws. There are always pros and cons for everything, and let’s have a look on them.
Pros of using Cold Storage:
The security is guaranteed with the usage of Cold Storage because it’s completely under an offline environment. Since it is not connected to the Internet, hackers, malwares or anyone with bad intention to steal the money are not able to access user’s account.
Easy to use and carry:
Cold Storage is super convenient because all the available methods are extremely easy to use. For instance: you just simply copy the private keys or scan the QR code from the paper wallet, use the electronic device to carry out the transactions with the hardware wallet, or save the keys on the USB flash drive and that’s all you need to do. In other words, there is no additional complicate security check needed which bothers all the time when you access from the web page.
Low cost or even free:
You don’t need to pay a lot of money to enjoy the function of cold storage. You can just find a simple USB device or even a trusty old PC that is super low cost and more than enough for its usage. Or even better, you can go for paper wallets and it’s totally free of cost.
Cons of using Cold Storage:
Any possible physical damage can make the cold storage dysfunctional. For example: paper wallets can get burnt, torn or wet and lose the function. USB drive can be lost or stolen. Hardware wallets can be broken and they are not resistant to the water damage either. As a result, the physical damage may still present a significant degree of problem.
Higher cost for major security:
The most effective and securest cold storage option is the hardware wallets. Which has a higher cost and more expensive than the others. On the other hand, cheaper option like USB flash drive or paper wallet for free cost provides lower level of security and the saved codes can be hacked or stolen easier. Therefore, if you are seeking the greater security, you need to pay the bigger price for the gear.