Cryptocurrency Asset Vaults Revealed: How to Choose and Use Cold Wallets Safely?

The longer you stay in the crypto circle, the more you realize the truth of this saying: “Not your wallet, not your coins.” As on-chain interactions become more frequent, many people are beginning to realize a serious issue—how to securely manage private keys and seed phrases. Cases of lost coins and theft are emerging endlessly, which is also the real reason for the explosive demand for cold wallets in the past two years.

So here’s the question: with so many cold wallets on the market, how do you choose? Are they complicated to use? Today, we will address these concerns one by one.

Quick Overview of 3 Popular Cold Wallets: How to Choose a Hardware Wallet in 2025

If you decide to store your main assets with a cold wallet, these three are currently the most reputable and securely certified options:

Ledger Nano X (Produced by Ledger, France)

• Security Level: CC EAL 5 certified
• Compact Size: 72mm×18.6mm×11.75mm, only 32g
• Supported Coins: 5500+ cryptocurrencies
• Price Threshold: $149

Trezor Safe 5 (Produced by SatoshiLabs, Czech Republic)

• Security Level: CC EAL 6+ (industry top)
• Special Features: Built-in touchscreen for more intuitive operation
• Supported Coins: 1000+ mainstream cryptocurrencies
• Price Reference: $169

SafePal S1 Pro (Cost-effective choice)

• Security Level: CC EAL5+ certified
• Connection Modes: USB-C and QR code scanning
• Supported Coins: 30,000+ (widest support)
• Price Advantage: around $89.99

Why Use a Cold Wallet? Two Dimensions for a Thorough Understanding

Security Dimension: Private keys truly in your control

The core logic of cold wallets is to isolate private keys completely on offline devices, making it impossible for hackers to steal through network attacks. Specifically, cold wallets generate a pair of “public key + private key” through hardware encryption algorithms:

• Public Key: Your account address, can be shared openly to receive assets
• Private Key: The real “password key,” controlling all funds in the wallet
• Seed Phrase: A user-friendly version of the private key, usually 12 or 24 English words, used for backup and recovery

The feature of not connecting to the internet to store private keys makes the risks of malware, phishing, exchange theft, etc., essentially unable to touch your assets.

Usage Dimension: The optimal solution for long-term storage

If your coins are for long-term allocation and don’t require frequent transactions, then a cold wallet is standard. Although each transaction requires connecting the device, entering a password, and confirming the signature—making the process somewhat cumbersome—this “trouble” is precisely the security guarantee.

How to Choose a Cold Wallet? Four Core Considerations

Picking a suitable cold wallet mainly involves these four dimensions:

1. Security Certification Standards Prioritize CC EAL levels (the higher the number, the safer), and also consider the manufacturer’s reputation and open-source audit records. Trezor Safe 5’s CC EAL 6+ is currently the highest level among hardware wallets.

2. Coin Compatibility Make a list of your holdings and confirm whether the target wallet supports all of them. Ledger and SafePal support a vast number of coins, while Trezor supports over 1000 but covers 99% of mainstream coins.

3. Price and Value Balance Prices range from $89 to $169, depending on your asset scale and needs. For small holdings, SafePal is suitable; for large holdings, Ledger or Trezor is recommended.

4. Interaction Experience Touchscreens, screen size, button feel—these seemingly minor design details can have a significant impact over long-term use. Official websites usually provide detailed specs, and user review communities can offer genuine feedback.

How to Use a Cold Wallet? Three Steps to Master

Assuming you already have a hardware wallet device, the following usage process is quite straightforward:

Step 1: Initialize and generate the key pair

On first use, the cold wallet will automatically generate a public-private key pair through encryption algorithms. You need to complete initial setup on the device, usually including creating a PIN and recording the seed phrase.

Step 2: Sign and authorize transactions

When transferring funds, connect the cold wallet to a computer or mobile device, open the corresponding wallet software (e.g., MetaMask with Ledger), enter the PIN to unlock, and initiate the transaction. The device screen will display transaction details, and you need to confirm the signature on the hardware—this step is equivalent to pressing a physical button to say “I agree.”

Step 3: Disconnect from the internet, store securely

After completing the transaction, immediately disconnect the device. The advantage of a cold wallet is that, in offline mode, even the most sophisticated hackers cannot move your coins. Also, to prevent device loss or damage, it’s strongly recommended to back up the seed phrase on paper or a USB drive.

Key Tip: When connecting a cold wallet, never access unfamiliar DApps or unknown websites, or you will lose the protective advantage of the cold wallet.

Cold Wallet vs Hot Wallet: A Comparison Table

Both are tools for storing crypto assets, but their characteristics are vastly different:

Simply put: a hot wallet is like your everyday pocket money, while a cold wallet is like your home safe.

The Rapid Growth of the Cold Wallet Market: What Does It Mean?

Data shows that the global crypto wallet user base has already surpassed 68 million, exceeding 80 million in the first half of 2022, with rapid growth. The hardware wallet market was about $400 million in 2021 and is expected to soar to $3.6 billion by 2032.

What does this imply? Increased competition benefits users. To compete for market share, manufacturers must improve security, cross-chain support, coin coverage, and price competitiveness. As a result, cold wallet products are continuously upgrading, offering more choices and better user experiences.

In summary: If your crypto assets are no longer small sums, owning a reliable cold wallet is not a luxury but a necessity. Choosing the right wallet allows you to sleep peacefully.