Cold wallets: What they are, How to use them and Best 2025

The rise of cryptocurrencies has revolutionized the way we conceive and manage money. However, this new financial era has also brought with it security challenges. Amid growing concerns about theft and cyber threats, cold wallets emerged as an answer to ensure the protection of our digital assets. Maybe you are thinking about changing your cold wallet, buying one for the first time and you feel a bit lost and a bit dazed, don't despair, we bring you some help today. In this article we have compiled all the necessary information to explain you which are the best options for cold wallets in 2024. Read on if you want to know more.

What are cold wallets?

A cold wallet is a type of wallet designed for cryptocurrencies that is fundamentally differentiated by its focus on security and the safeguarding of digital assets. What distinguishes it is its essential feature of not generating keys through connection to the blockchain or the Internet, it is this aspect that defines its "cold" character. Although these wallets are not excluded from connecting to the network when necessary, they do not depend on a constant connection for their operation.

This approach provides the peace of mind of holding a reserve of cryptocurrencies without worrying about market fluctuations. In short, a cold wallet is a digital safe haven that ensures security and full control of your crypto assets, while providing additional options such as the use of personal PIN, limited means of communication and the ability to create a recovery seed in case of emergency.

How do they work?

Cold wallets were designed with the idea of being able to store cryptocurrencies in a more secure way, thus minimizing their exposure to cyber threats. In order for you to understand a little more about how they work, here we explain them in more detail:

• As we said before, the fundamental characteristic of a cold wallet is that it generates and stores the private keys of your cryptocurrencies offline, that is, without being connected to the Internet or the blockchain. 
• Private keys generated offline are stored on a physical device, such as a hardware wallet (a specialized USB device) or paper (known as paper cold storage), or on a computer that is never connected to the Internet (an air-gapped computer). These devices or methods ensure that the private keys are isolated from any online access.
• To make a transaction from a cold wallet, you must temporarily connect your device to the Internet or your computer to the network. However, this connection is ephemeral and is used only to sign the transaction. Once the transaction is signed, the device or computer is disconnected from the network.
• Cold wallets use digital signatures to authorize transactions. The private key is used to sign the transaction and prove that you have ownership of the cryptocurrencies, but this signature is done in a secure and isolated environment. This ensures that even if an attacker manages to compromise the device while it is connected to the Internet, they cannot obtain the actual private key, which protects your funds.
• They usually offer backup and recovery options. This involves the creation of a "seed" or recovery phrase, which is a series of words that allow you to restore your private keys in case you lose or damage the physical device. 
• Some cold wallets have additional security features, such as two-factor authentication (2FA) or the use of a personalized PIN to authorize transactions. 

Advantages and disadvantages

Nothing is perfect, much less cold wallets. Let's understand that they were a response to a possible security problem and that the focus is that. This, therefore, will cause them to "flounder" a little in other aspects, that is, they have disadvantages. Here are the advantages and disadvantages of cold wallets:

Advantages

• The main advantage of cold wallets lies in their unparalleled security. By generating and storing private keys offline, these wallets are virtually invulnerable to cyber attacks and online threats. 
• With a cold wallet, you have full control over your private keys and, therefore, over your digital assets. You do not depend on third parties, such as exchanges, to guard your cryptocurrencies. 
• These wallets are ideal for long-term storage of cryptocurrencies. You can keep your assets safely and securely for long periods without worrying about market swings or online threats.
• Most cold wallets offer the option to create a recovery phrase or seed. This sequence of words allows you to recover your private keys in case you lose or damage the physical device, providing an additional layer of security.

Disadvantages 

• Because cold wallets are disconnected from the Internet, they may be less convenient for frequent transactions or immediate access to your cryptocurrencies. 
• As these are physical devices, there is a risk of losing or damaging a cold wallet, resulting in the permanent loss of your private keys and, consequently, your digital assets. 
• Some cold wallets may require an additional level of technical knowledge for proper configuration and use. They are not suitable for less experienced users in the field of cryptocurrencies.

Best Cold Wallets 2025

We present and comment here, 7 of the best cold wallets of this 2024:

Ledger Nano X

In 2014, eight experts in cryptocurrencies, IT security, and blockchain solutions founded Ledger with a clear mission: to provide a secure and reliable way to store digital assets. Since then, the company has grown to more than 130 employees in Paris, Vierzon, and San Francisco, and has become a benchmark in advanced security for cryptocurrency enthusiasts and users.

The Ledger Nano X is a hardware wallet currently around 149USD, which will store your Bitcoins, Litecoins and other altcoins securely offline. Although it features Bluetooth Low Energy (BLE) connectivity for convenience, its security is not compromised in the slightest. Only public data is transmitted over Bluetooth, and your private keys remain protected on the device. 

Ledger Nano X is equipped with a Secure Element (SE) that asks for your authorization before making any changes, even if someone tries to hack the Bluetooth connection.

A distinctive element that brings this wallet to its security is its exclusive operating system called BOLOS. This system integrates an online security chip from Ledger wallet, making it the only wallet on the market to offer this advanced technology.

Once you receive your Ledger Nano X, you can create a PIN code of at least 4 digits. In case you forget your PIN, the Ledger Nano X provides a 24-word recovery phrase that allows you to create a new PIN.

In addition to its robust online security, the Ledger Nano X is designed to withstand physical damage. Its high-quality stainless steel housing protects it from bumps and drops, ensuring the integrity of your assets.

Although the price is above average, the investment in security is more than justified. Ledger Nano X is an enhanced version that offers unique features and invaluable peace of mind. 

Trezor Model T

Trezor Model T is a jewel in the world of cold wallets, revealing a series of advantages that make it stand out in the market.

One of the main advantages of the Trezor Model T is its compatibility with a wide range of cryptocurrencies and tokens. In a world with nearly 7000 different cryptocurrencies, the ability to store a wide variety of digital assets is essential. Whether you want to protect Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Ripple or any other cryptocurrency, the Trezor Model T is a reliable option. It is currently priced at around 219USD.

Security is the cornerstone of any hardware wallet, and the Trezor Model T does not disappoint in this regard. It receives regular firmware updates, ensuring that your device is protected against malware and is up to date. 

It also features a touch screen that significantly improves ease of use compared to its predecessor, the Trezor One, which had physical buttons.

A common complaint among cold wallet users is the tedious task of trading cryptocurrencies while storing them securely. However, the Trezor Model T has simplified this process, from the initial setup to the actual storage of coins. Another outstanding feature is the ability to set your recovery phrase at any time, which streamlines the setup and security of your assets.

However, not all opinions about the Trezor Model T are positive. Some users have expressed concerns about the device's bulky design compared to its competitors, such as Ledger. This additional bulk may make transportation less convenient.

ELLIPAL Titan

Ellipal, a Hong Kong-based company founded in 2018, has put an innovative spin on the world of cold wallets with its Ellipal Titan device.  

Ellipal Titan stands out for its focus on security. It uses an airlock to completely isolate the device from the Internet and other network connections, ensuring that the user's private keys are never exposed to online threats such as hackers, malware or viruses. Unlike some hardware wallets with small screens or physical buttons, the Titan features a color touch screen that makes it easy to navigate and view information.

Ellipal has simplified the configuration and usage process to make it suitable for beginners. Users can configure their recovery phrase at any time, thus streamlining security and access to assets.

Unlike some competitors that use plastic to create their wallets, the Titan features an all-metal, water-resistant casing, ideal for active and on-the-go users. It uses QR code technology to scan and confirm transactions, adding an extra layer of security.

On the other hand, some of its disadvantages are that, although it is compatible with many popular cryptocurrencies, Ellipal Titan does not support Monero, for example. This can be a drawback for those seeking privacy.

The company has advertised its battery durability as impressive, but, some users have reported problems with the charging duration. It generates Bitcoin BIP 44 addresses, which start with the number 3 instead of the more modern BIP 84 addresses that start with "bc". This can result in higher transaction fees.

Unlike wallets that offer more secure 24-word recovery phrases, the Titan uses 12-word phrases and does not support cryptocurrencies on test networks for any blockchain, as well as does not allow the addition of a custom RPC, which can make testing and learning difficult for certain users. It is priced at $139 USD.

CoolWallet Pro

The CoolWallet Pro is a revolutionary hardware wallet designed for maximum security and portability. Its compact and lightweight design, the size of a standard credit card and weighing less than 6 grams, makes it an incredibly convenient choice for people on the go. It is also water resistant.

Security is of utmost importance in the world of cryptocurrencies, and the CoolWallet Pro takes this aspect seriously. It uses a military-grade CC EAL 6+ CC security chip, outperforming other popular hardware wallets on the market. This ensures solid protection for your digital assets, giving you peace of mind.

Compatibility with mobile devices is another outstanding feature. You can easily pair the CoolWallet Pro with your Android or iOS device via Bluetooth within a range of 10 meters. The companion mobile app simplifies the management of your cryptocurrencies, allowing you to make trades, track your balances and exchange cryptocurrencies directly from your smartphone. Its battery is impressive, with a standby period of 2 to 3 weeks on a full charge. 

CoolWallet Pro supports a wide range of cryptocurrencies, making it an ideal choice for those with diversified portfolios. In addition, it integrates seamlessly with various operating systems, ensuring its accessibility across different devices and platforms. The user experience is user-friendly and secure, as it uses tamper-evident labels on the packaging for added protection. Setting up the wallet is simple and is done by installing the CoolBitX app, pairing via Bluetooth and creating a hardware wallet with a customizable recovery phrase of 12, 18 or 24 words.

The CoolWallet Pro offers portability, Bluetooth integration, high security, support for multiple cryptocurrencies and a reasonable price of $149. 

Keystone Pro

The Keystone Pro was meticulously designed to ensure maximum security for your digital assets. From the moment you receive this device, you realize the company's commitment to the security of your cryptocurrencies. Before setting up the Keystone Pro, you will be prompted to scan a QR code on the back of the device to verify the supply chain and prevent any malicious activity during delivery.

Once this security verification is completed, you can proceed to set up your Keystone and account through the official website. During this process, you will be guided on the importance of properly creating and storing your recovery phrase and creating wallets within the Keystone system. In addition, you will be able to choose between a password or fingerprint reading to access the device when it is locked.

To maintain security, a firmware update is required. However, since the Keystone Pro is completely isolated from the online world, this update is performed via a Micro SD card. Users must download and transfer the update from the computer to the device via this card. 

The process of sending and receiving assets on the Keystone Pro is similar to other hardware wallets, such as the NGRAVE ZERO. To receive assets, you simply copy the address from the mobile app or device via a QR code. However, the sending process involves additional steps, including authentication via password or fingerprint, specification of the recipient's address and confirmation via QR code scanning on the mobile device.

The Keystone Pro stands out for its physical anti-tampering technology, which ensures that sensitive data is automatically erased if there are attempts of physical tampering.

In terms of blockchain compatibility, Keystone offers support for more than 5500 cryptocurrencies and 200 blockchains, as well as integrations with more than 15 popular software wallets. In addition, it is the first hardware wallet to offer direct integration with ENS usernames, simplifying transactions. The Keystone Pro is priced at $169 USD.

However, one negative aspect is the lack of support for NFTs in its native application, although this feature is expected to be developed in the future. Keystone stands out for its focus on digital asset security, but its usage process can be slower due to its isolation and use of QR codes to confirm transactions. This wallet is more suitable for those looking for long-term security rather than those who make frequent transactions.

Trezor Model One

Trezor One is one of the most popular and affordable hardware wallets offered by Trezor. A crucial feature of Trezor One is its isolation of private keys in a secure environment, ensuring the protection of your assets, even if your device is connected to a malware infected computer. It has a password management function and is capable of being used as a U2F security token providing an additional layer of protection for your online accounts.

Trezor Model One supports over 1,000 cryptocurrencies, including a wide range of tokens such as Ripple, Monero, Litecoin, EOS, Ethereum, Dash, Binance and, of course, Bitcoin. This versatility makes it a solid choice for those with a diversified portfolio.

The packaging includes the device itself, a USB cable, a lanyard, quick start instructions, a recovery seed card and four stickers. Portability and simplicity are hallmarks of this device.

While Trezor Model T, a premium version, may be an option for those looking for a sleeker design, Trezor One is made of lightweight but durable plastic, with a small display, two buttons and a USB port.

One of the most notable features of Trezor One is its security record. Unlike some competitors, this device has not suffered significant attacks, which supports its reputation as a safe choice for protecting your digital assets.

It is important to note that transferring cryptocurrencies to a wallet like Trezor does not mean they are "stored". Rather, you notify the blockchain that your assets reside at a Trezor-compatible address, which requires physical authorization for any Bitcoin transaction.

Setting up Trezor Model One is relatively simple. By downloading the Trezor Suite app, you can set a PIN, create a wallet and generate a backup of your 24-word recovery seed. It is priced among the most affordable on the market, currently hovering around $68 USD.

KeepKey

KeepKey is a hardware cryptocurrency wallet with a modern and sleek design, widely known for its ease of use. Its most prominent feature is that it offers an additional layer of protection against hackers. In addition, to further strengthen security, KeepKey implements a PIN code and allows the creation of recovery phrases.

KeepKey is very accessible and easy to use, despite its relatively large size, the single screen and one button simplify navigation and interaction with the device. Most operations are performed intuitively through the associated mobile app, making it easy to set up and use on an ongoing basis.

In terms of price, KeepKey is an attractive option. Its cost of $49 (a significant reduction compared to its previous price of $239) makes it accessible to a wide audience interested in keeping their cryptocurrencies safe and out of reach of online threats.

However, it has some limitations. One of the most notable is its support for a relatively limited number of cryptocurrencies, around 40 in total. This is restrictive for those wishing to store lesser-known tokens or new additions to the market. In comparison, other hardware wallets, such as Ledger, offer support for more than 1,000 cryptocurrencies.

In addition, KeepKey's size and weight are also very inconvenient for those who value portability. With 54 grams of weight and considerable dimensions, it can be uncomfortable to carry with you.

KeepKey is a hardware wallet that stands out for its ease of use, in addition to its affordable price. However, it has limited support for cryptocurrencies and a considerable size.

How to know if a wallet is reliable?

To determine whether a cryptocurrency wallet is reliable, it is important to consider several key aspects:

1. Security and encryption: Check if the platform uses strong encryption to protect data and transactions. Look for information on security measures such as two-factor authentication (2FA), cold storage of digital assets and regular security audits.
2. Reputation and experience: Research the wallet provider's reputation in the cryptocurrency community and in specialized media. Wallets with a long history and a good reputation tend to be more reliable.
3. Transparency and team: Check if the company behind the wallet is transparent about its development team, physical location and security policies. Lack of transparency can be a red flag.
4. User reviews and comments: Search for reviews and comments from other users about the wallet on cryptocurrency forums, social networks and review sites. Other users' experiences can provide important insight into the wallet's reliability and customer service.
5. Features and support: Make sure the wallet offers the features you need and has good customer support in case of problems or questions. Reliable wallets usually provide an intuitive interface and advanced security features.
6. Licensing and regulation: Check whether the wallet is regulated or has relevant licenses in your jurisdiction. If it operates in a country with strict regulations, it is more likely to meet security and user protection standards.
7. Updates and ongoing development: Trusted wallets tend to regularly update their software to address security vulnerabilities and improve the user experience. Check when the wallet was last updated and how often improvements are made.

When evaluating a cryptocurrency wallet, combine these aspects to make an informed decision and minimize the risk of using an untrusted platform that may compromise the security of your digital assets.

Which wallet pays more?

The remuneration or payout that a wallet can offer may vary depending on the type of digital asset being stored and the specific conditions of the platform. Here are some key points to consider:

1. Staking and participation rewards: Some wallets offer staking programs, where users can block certain cryptocurrencies to support the network and, in return, receive rewards in the form of new cryptocurrencies. The amount of reward varies depending on the cryptocurrency and staking conditions.
2. Interest on loans: Some wallets allow lending cryptocurrencies to other users in exchange for interest. The interest rate may depend on the supply and demand for loans on the platform and may vary significantly depending on the cryptocurrency and the loan period.
3. Incentive programs and promotions: Occasionally, some wallets may offer promotions or incentive programs that include additional rewards for participating in certain activities or for holding certain cryptocurrencies for specific periods.
4. Delegation and validation: In blockchain networks that use consensus mechanisms such as Proof of Stake (PoS), users can participate in transaction validation or delegate their tokens to validators. In return, they can receive rewards proportional to their participation.

It is important to research and compare different wallets to understand what type of rewards they offer and under what conditions. Also, consider the wallet's security, ease of use and reputation before making a decision on where to store your cryptocurrencies and participate in rewards programs.

Which virtual wallet charges less commission?

The commission that a virtual wallet charges may vary depending on several factors, such as the type of transaction you make (sending or receiving cryptocurrencies), the cryptocurrency involved, and the specific policies of the platform. Here are some general aspects to consider:

1. Network fees: Wallets usually charge fees for cryptocurrency transactions to cover processing costs on the corresponding blockchain network (such as Bitcoin, Ethereum, etc.). These fees can vary depending on network congestion and how fast you want the transaction to be processed.
2. Currency exchange fees: If you perform cryptocurrency exchanges within the wallet (e.g. convert Bitcoin to Ethereum), exchange service fees may apply.
3. Withdrawal fees: When transferring cryptocurrencies from the wallet to another address outside the platform, some wallets may charge a transaction fee.

To determine which virtual wallet charges less commission, it is recommended:

• Compare fees: Review the fee structures of various virtual wallets and compare them to see which are most economical for your specific needs (e.g., frequent sending of certain cryptocurrencies).
• Research comments and reviews: Look for user opinions on fees and wallet transparency in terms of commissions.
• Use rate simulators: Some platforms offer tools or fee calculators that allow you to estimate how much a transaction will cost before you make it.
• Consider security and ease of use: In addition to fees, evaluate the wallet's security and ease of use. A wallet with low fees but insecure may not be the best choice in the long run.

When evaluating virtual wallets, consider your specific needs, such as the type of cryptocurrencies you want to store, frequency of use, and additional features that might be important to you.

Tips for the safe use of cold wallets

While cold wallets are a solid choice for the security of your cryptocurrencies, it is essential to follow certain practices and tips to ensure safe and effective use. Here are some key guidelines:

• The recovery phrase or seed provided by your cold wallet is your last line of defense in case of device loss or damage. Store it in a safe place, away from unauthorized access and out of reach of physical disasters such as fire or flood. An extra tip consider storing copies of the seed in different locations.
• Make sure you purchase your cold wallet from reliable and official sources. There are counterfeits on the market that could put your assets at risk. 
• If your cold wallet uses software, be sure to keep it updated with the latest versions and security patches. 
• When connecting your cold wallet to a computer for transactions, you must ensure that the computer is free of malware and viruses. 
• Never share your recovery phrase, private keys or PIN with anyone. These details are extremely confidential and only you should be aware of them.
• If your cold wallet supports 2FA, enable it. This provides an additional layer of security by requiring a second verification before any transaction is made.
• Before transferring large sums of cryptocurrencies to your cold wallet, perform a recovery test using the recovery seed. This will ensure that you can access your funds in case of need.
• Familiarize yourself with how your cold wallet works and understand the associated security procedures. The better you understand how it works, the better you will be able to protect your assets.
• For greater security, you can split your funds and use several cold wallets. This reduces the risk in case of loss or damage of one of them.

Conclusion

In a landscape where security is paramount, cold wallets stand out as a bulwark in protecting digital assets. These cold wallets offer a formidable barrier against cyber threats by keeping tokens out of the reach of hackers and online attacks. While their use may seem more complex compared to hot wallets, the investment of time and effort in setup, their use translates into invaluable peace of mind and confidence.

Ultimately, the control and responsibility for keeping your assets safe rests in our hands. By choosing a cold wallet, you are taking concrete steps to safeguard your financial future in the world of cryptocurrencies. So, trust Domoblock , because as you can see, it not only specializes in real estate crowdfunding and real estate tokenization but as an organization it cares about your assets.

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