Why Are More and More People Turning to Cold Wallets?
Over the past three years, on-chain activity has exploded, and hot wallets have gained a large user base due to their convenience. But behind this convenience lies risk—private key management errors, forgotten or stolen seed phrases, all of which can lead to irreversible asset losses. For this reason, the market demand for cold wallets has surged. But with so many cold wallet products available, how should one choose? And how to use them correctly?
First, understand: What is a cold wallet, and how does it work?
Crypto wallets are divided into hot wallets and cold wallets. A cold wallet (Cold Wallet) refers to a wallet that stores private keys for crypto assets on offline devices, including hardware wallets, paper wallets, and USB wallets. In contrast, hot wallets are stored on internet-connected computers or smartphones, making them more vulnerable to hacking.
The core working principle of cold wallets