The Motley Fool has just released an article looking at cold storage for crypto investors that goes beyond Ledger Nano S or X, or Trezor Model 1 or Model T wallets.
Hardware wallets
Hardware wallets are what you probably think of when you try to imagine the most secure cryptocurrency wallet. Quoting from fool. com,
But a hardware wallet is much more than just a storage device. In a hardware wallet, your private key is essentially embedded within the device, so when you go to send or approve a crypto transaction, instead of copying the key or even having to pull it up on the screen, both of which can leave you exposed to potential attacks, you just click a button through the wallet.
Duress Wallet
Even hardware wallets have risks, however. For instance, in the case of a home robbery, you could be coerced with a threat of physical violence into giving up your wallet and private key. In this example, a large portion your entire wealth would be vulnerable.
One solution would be to have a decoy wallet, sometimes called a duress wallet, containing only a small portion of your crypto holdings.
Sound wallets
Fool .com also describes a somewhat esoteric and high-tech solution known as a sound wallet. Sound wallets let users record private key encrypted information onto a CD. The key is then decrypted by the user with their own handy cloak and dagger spectroscope application.
Really Deep cold storage
Not happy with your Ledger Nano or Trezor security? Then dig a hole and bury it or cut a hole in your wall, hide the wallet, then plaster and repaint the wall. You get the idea. Sounds clever, but impractical, and also does not solve the “give it up under threat of torture or death” scenario.
Related Information:
For more information about crypto wallet security please see Crypto Wallets 101
Original article can be found at;//www.fool.com/investing/2022/09/10/5-types-of-cold-storage-for-crypto-investors/
Feature Image Credit: Photo by Jason Dent on Unsplash
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