While cryptocurrency prices can be volatile, it is clear that they will remain. In the beginning, they were only used to facilitate cross-border transactions. However, governments’ arbitrary inflation of fiat currencies has seen Cryptocurrencies become a far more reliable store of value.
However, like any emerging industry, storage of digital assets within the blockchain universe has faced unique challenges. Blockchain transactions are highly susceptible to fraud due to their anonymity and immediate nature.
Two main ways users can store cryptocurrency assets are available to them. There are two main ways that users can store their cryptocurrency assets: Hot-wallets, or software wallets, can be used on the internet, as well as Cold wallets. These physical wallets can hold key crypto access keys.
In 2021 alone, total losses due to decentralized ledgers of funds have exceeded $12Billion. 90% was due to fraud and theft, 10% to critical user mistakes such as losing private keys or transferring funds to incorrect addresses, etc.
Custodial and software wallets have a higher risk. The risk of losing assets due to fraud or hacks can be mitigated with Cold storage.
Experts generally agree that cold wallets offer the most secure and safest way to store crypto assets.
Simply put, cold storage means that digital assets such as tokens or cryptocurrencies are kept offline. Two types of cold storage are common: paper wallets or hardware wallets.
A Paper wallet is used to generate private keys. These keys can be printed out, or written down on paper. The keys can then be stored in a safe place.
Hardware wallets, on the other hand are made from encrypted devices like a USB stick. This small device stores the critical information required to authorise cryptocurrency transactions. Users can store their cryptocurrency offline with a hardware wallet that is far from reach by hackers.
The benefits of cold storage
Because cold wallets are not perpetually connected to the internet, they can’t be hacked by hackers on another side of the world. To steal crypto assets, one would need to physically attack the user. This is very unlikely.
2. Safe Storage
The access keys are easily reproduced and saved in several places.
3. Transfer ownership easily
The loss of millions of dollars in crypto assets is due to holders not disclosing passwords to their software wallets. Cold storage allows investors to easily pass them on to an heir upon their death, or in unconsciousness.
4. We offer extensive coin support
Cold storage wallets allow you to keep a variety of tokens and coins, unlike Software wallets.
In recent years, there have been many cold-wallet brands. Trezor is Trezor. Each option has its own downsides.
If the user loses or damages the device, the funds may not be refunded. These hardware devices can be quite expensive so some people choose to buy less secure and cheaper options.
Simba is one of many companies that have studied this market and come up with innovative ways to offer advanced cold wallet alternatives. Simba is an UAE, Liechtenstein, and Swiss registered company offering cold storage of cryptocurrency in safe locations throughout the world.
Simba’s unique cold hardware wallets deploy a programmed script and multi-signature algorithms to provide high security and fully-encrypted access to assets via confirmation by single or multiple authorized faces.
Simba Storage has some innovative key features:
- In the event of loss or theft of your wallet, you can easily and quickly recover funds.
- Legally purchase Bitcoins in real-time.
- Four countries offer maximum encryption and protection for digital assets stored in four different locations
- Provides real-time liquidity through a native ERC-20 token, facilitating quick and easy transactions.
Although the cryptocurrency world has long been called “the wild west of global finance”, many legal firms are rising up and are set to transform the landscape. Simba and other innovative businesses are expected to soon surpass the bad and illegal ones. Blockchain technology is expected to significantly curb fraud, theft, and scams.