FTX – One of the fool-proof monuments of the Crypto world and among the top exchanges trusted by millions of users with a whopping net worth of $32 Billion and more than 300 employees managing it… – all came crashing down within two weeks!
The company’s sudden sinking and bankruptcy in the November of 2022 was shocking to many, and there were two primary reasons behind it.
First, no one had ever thought that the second most widely used and thus trustworthy exchange would all wrap up so suddenly.
Second, the company’s loss was also the customers’ loss as, according to authorities, an estimated $8 Billion or more of customer’s money was lost in the process!
It is unclear whether the customers will ever get their money back.
The users of FTX were not the only sufferers here as another seemingly infallible exchange – Voyager – also fell victim to sudden bankruptcy, resulting in the loss of customer reserves, with many now desperate to recoup funds.
Can you really trust exchanges with your crypto assets?
While these bankruptcies are a sad turn of events, these crashes should serve as a wake-up call for others who may fall victim to a similar catastrophe in the future, especially the investors/customers.
A concerning analysis of Binance has shown that almost half of the company’s holdings are also in its own tokens, which means if a similar crash happens in the future, users of Binance would have to face a similarly grim fate as users of FTX and Voyager did.
People relying on centralized wallets on Binance or other exchanges are no longer as confident because the possibility of a famous exchange crashing is not so rare anymore.
With the sudden shift in dynamics due to the downfall of FTX and Voyager, there is plenty of instability in the crypto market.
The government is trying its best to regulate the crypto world and make it safe for its consumers. Until there’s a definite solution that can ease our worries, we must take safety measures of our own to keep our assets safe in the true sense in case another such exchange crashes.
So, what can we do?
One of the best solutions to protect you from losing your assets is taking your crypto out of exchanges and storing them in cold wallets(At least until the government takes some action).
A cold wallet, more commonly known as cold storage, is a digital wallet stored on a separate hardware device that is not connected to the internet.
Many cold wallets look like USB drives. When your holdings are in a separate hardware device not connected to the internet or a computer, you don’t have to worry about unauthorized access, cyber-attacks, or other vulnerabilities that a system online is suspected of.
Besides that, you are also safe from exchanges or online wallets crashing down because your holdings are in a separate device that has nothing to do with whatever’s going on online.
The only way you could lose your investments with a cold wallet is by misplacing your device, so make sure to store your cold wallet in a safe space and take care of it, so it doesn’t get lost or stolen.
While it is much more challenging to hack a cold wallet, it is still possible if you’re getting yours from a non-reputable manufacturer or using a secondhand device. So make sure you buy yours from a trusted manufacturer.
Which cold wallet should you use?
Everyone has their preference, but for the sake of this article, we will go with the top products that the users already love and are statistically proven as the best ones out there.
Some of these are:
For the sake of this article, we will focus on the most successful cold wallet – Ledger.
Ledger Hardware Wallets
Ledger has enjoyed the spotlight for several years as the best cold wallet manufacturer, with over five million+ sales. You can store up to 5500+ crypto assets on your Ledger wallets, including NFTs.
Ledger cold wallets are famous for their industry-leading security that helps keep your crypto and NFTs safe all the time.
These wallets have a dedicated, certified chip that offers ultimate hardware protection and keeps your private key secure all the time.
Accessing your cold wallet is also done through a secure platform – The Ledger-Live app that you can use to buy, sell or exchange your cryptocurrencies safely and securely.
All the transactions are verified on your smartphone’s or computer’s trusted screen and are only physically confirmed by you.
Once you’re done, you can disconnect the app and power off your cold wallet, which will have no access to the internet or anyone else as long as you don’t want it to.
With all the added safety, Ledger ensures you have absolute ownership and are the only one in charge of your holdings.
Ledger has excellent customer support and a community of over five million+ users, including noobs to pros, who can help you on your journey.
The company provides cold wallets as well as other accessories.
When it comes to cold wallets, Ledger Nano X is their magnum opus product; that is a blue-tooth-enabled hardware wallet that comes in three colors to choose from.
You can own your own Ledger Nano X for $199.
Their second hottest is the Ledger Nano S Plus, which offers similar protections to Nano X but does not come with blue-tooth. You can choose from five available colors.
Ledger Nano S Plus is available at around $78.
And last but not least is the Ledger Stax, a cold wallet with a dedicated touch screen to help you make your day-to-day transactions with clarity and ease.
It’s available in graphite color, and you can get yours for $279.
Besides this, Ledger also offers bundles and packs at a discounted price if you’re looking to get cold wallets for your friends or family.
All that being said, having a secure platform for your holdings is a must-have in 2023, and no better way to do it than cold wallets. Getting one for yourself is a surefire way to secure your holdings and gain that peace of mind, so no disruption in the crypto world puts you at risk.