How to Save Crypto Offline: A Simple Guide to Protect Your Coins

A Bitcoin commentator once said, "The more connected to the internet and banks, the less secure your crypto is." And I attest to that, why? With over $3.7 billion worth of crypto stolen in 2022 alone, it's clear that keeping your digital money safe is a big deal.

Think about it: hackers are always coming up with new ways to break into online accounts and wallets. If you keep your crypto on an exchange, you trust that company to protect your money. But what if the exchange gets hacked or goes bankrupt?

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That's where offline storage comes in. By keeping your crypto "cold"/ ”offline” and away from the internet, you can protect it from online threats. In this article, we'll talk about different ways to save your crypto offline.

Key Takeaways

  • Hardware wallets are physical devices that store crypto offline.
  • Popular hardware wallet brands include Ledger, Trezor, Tangem, SafePal, NGRAVE, and Cypherock.
  • Paper wallets are printed documents containing private keys.
  • Setting up a hardware wallet involves purchasing, downloading software, connecting, creating a PIN, writing down recovery words, adding crypto, and testing transactions.
  • Paper wallets are created using apps and stored offline.
  • USB drives and external hard drives can also store crypto offline.

Types of Offline Storage Solutions

Crypto Offline storage solutions

Here are the two major types of offline storage solutions:

Hardware Wallets

Also known as cold wallets, hardware wallets are a type of offline storage solution for cryptocurrencies. 

They are physical devices, often looking like USB drives, that keep your crypto assets safe by storing them away from the internet. This offline nature makes them much harder for hackers to access, making hardware wallets ideal for storing large amounts of cryptocurrency.

Popular Hardware Wallet Options

There are several good options to choose from, each with its strengths.

Ledger

Ledger is a well-known brand that makes two popular wallets. The Nano S Plus is affordable and secure, supporting over 5,500 cryptocurrencies. It's great for beginners but has limited storage space. The Ledger Stax is more expensive but has a large touchscreen that makes it easier to use. It also supports NFTs and connects wirelessly to your phone.

Trezor

Trezor is another trusted name in hardware wallets. Their Model One has been around for a long time and is known for being reliable and secure. It's cheaper than some newer options but doesn't have as many fancy features. Trezor's newer Safe 3 model offers improved security at a good price.

Tangem

For something different, there's the Tangem wallet. It looks just like a credit card and uses NFC to connect to your phone. This makes it super easy to carry around and use, but it doesn't have a screen for checking transactions.

SafePal X1

The SafePal X1 tries to balance security and ease of use. It connects wirelessly but has special features to keep your information safe. It's also less expensive than some other options.

NGRAVE ZERO

If you want the highest level of security possible, the NGRAVE ZERO might be for you. It never connects to the internet and has military-grade protection. However, it's also one of the most expensive options.

Cypherock

Lastly, there's Cypherock, which offers a unique way to back up your wallet. Instead of writing down a recovery phrase, it uses special cards to keep your information safe. This can be more secure but also more complicated.

Paper Wallets

Paper wallets

Just like the name "paper wallet", it simply means storing your cryptocurrency access information on a piece of paper. 

Paper wallets are a way to keep your cryptocurrency safe by taking it offline. When you print out your keys on paper, they're no longer connected to the internet or the cryptocurrency network. 

Your digital coins are still there, but no one can get to them without the information on that piece of paper. It's like putting your money in a safe that only you can open.

This method was more common when cryptocurrency was newer. While there are now fancier ways to store digital money, paper wallets can still be useful in some situations. 

They're simple and don't rely on complicated technology. However, you have to be very careful not to lose or damage the paper, as it's the only way to access your funds.

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Setting Up a Hardware Wallet

Here's a step-by-step guide to purchasing and setting up a hardware wallet:

Buy Your Hardware Wallet

First, you need to buy a hardware wallet. Go to the official website of the wallet brand you want, like Ledger or Trezor. Make sure you're on the real website to avoid fakes. Order your wallet and wait for it to arrive in a sealed package.

Download the Wallet Software

Most hardware wallets need special software to work. After your wallet arrives, go back to the official website and download the right software for your computer. For example, if you bought a Ledger, you'd download Ledger Live.

Connect Your Wallet to Your Computer

Take your new hardware wallet out of the box. Use the USB cable that came with it to plug it into your computer. Your computer should recognize it as a new device.

Set Up a Secret Code

The wallet software will ask you to create a PIN code. This is like a password for your hardware wallet. Choose a code that's hard for others to guess, but easy for you to remember.

Write Down Your Recovery Words

Your wallet will show you a list of 24 random words. These are super important - they're your backup in case something happens to your wallet. Write these words down on paper exactly as they appear. Don't store them on your computer or phone.

As of August 2022, there were 84.02 million crypto wallets worldwide. This is a significant increase from 2015 when there were only 3.16 million wallets.

Double-Check Your Recovery Words

To make sure you wrote down the recovery words correctly, your wallet will ask you to enter some of them back in. This is like a test to make sure you have the right words.

Add Your Cryptocurrencies

Now you can start using your wallet. The software will help you set up accounts for different types of cryptocurrency. You can choose which ones you want to use.

Try a Small Transaction

Before you trust your wallet with lots of money, try sending a tiny bit of cryptocurrency to it. Then try sending a tiny bit out. This helps make sure everything is working right.

Keep Your Wallet Updated

The company that made your wallet will sometimes release updates to make it safer or work better. Make sure to install these updates when they come out.

Store Your Wallet Safely

When you're not using your hardware wallet, keep it somewhere safe. Treat it like you would valuable jewelry or important documents. Keep it away from extreme heat or cold, and don't let it get wet.

Remember, your hardware wallet doesn't hold your cryptocurrency. It holds special codes (private keys) that let you access your cryptocurrency on the blockchain.

Creating and Using a Paper Wallet

Paper wallet

First, you’ll need to decide how you want to create your paper wallet. You could write your keys and seed phrases on paper with a pen, but most people use an app for this.

  1. Choose and Install Your App: Download and install a paper wallet app that you trust.
  2. Go Offline: Disconnect your device from the internet to ensure security.
  3. Create Your Wallet: Use the app to generate your new wallet.
  4. Print Your Wallet: Decide how many copies you want to print. Printing ensures you have a physical backup.
  5. Delete Digital Traces: Clear your browsing history, and cookies, and remove the app if needed to ensure privacy.

Using Your Paper Wallet

Once printed, you can use your paper wallet in a few ways:

  1. Store Your Keys: You can remove your private keys from your digital wallet and store them in a paper wallet. This keeps them offline and safe from hacks.
  2. Scan to Use: If you need to use your keys, you can scan the QR code on your paper wallet with a wallet app or manually enter the keys.

QR codes are a type of barcode that can be scanned by smartphones or other devices with cameras. They store information in a square grid of black and white dots and can be used to quickly access websites, download apps, or view digital content.

Best Practices for Offline Crypto Storage

How to save crypto offline

Following these best practices can help ensure that your cryptocurrency is stored safely and securely offline.

Regular Backups and Redundancy

Always make regular backups of your private keys and other important information. It's wise to have multiple copies stored in different secure locations. This ensures that if one backup is lost or damaged, you still have access to your funds.

Importance of Strong Passwords and Encryption

Use strong, unique passwords for your crypto wallets. When possible, encrypt your private keys and recovery phrases. This adds an extra layer of security, protecting your assets from unauthorized access.

Keeping Recovery Phrases Secure

Store your recovery phrases in a safe place, away from prying eyes. Never store them digitally or share them with anyone. Consider writing them down on paper and keeping them in a secure, locked location. This ensures you can recover your funds if you lose access to your wallet.

Conclusion

A common way to store cryptocurrency offline is using a cold wallet. We've explored various options, including hardware wallets and paper wallets, each offering unique advantages and security measures. 

By understanding the benefits of offline storage and carefully selecting the appropriate method, you can significantly enhance the protection of your digital assets. Remember, the key to safeguarding your cryptocurrency lies in proactive measures and a commitment to security best practices.

Frequently Asked Questions

How Do I Store My Crypto Offline?

You can store cryptocurrency offline using cold storage wallets or paper wallets. Cold wallets are secure and popular for this purpose.

Can Crypto Be Used Offline?

Yes, but it requires preparation with specialized equipment. You can't just spontaneously send crypto offline without prior setup.

Can I Send Crypto Offline?

No, sending and receiving cryptocurrency requires an internet connection, as the blockchain operates online.

What Happens to Crypto Without Internet?

Transactions halt without the internet, as Bitcoin requires online network communication for validation processes.

Disclaimer: This article is intended solely for informational purposes and should not be considered trading or investment advice. Nothing herein should be construed as financial, legal, or tax advice. Trading or investing in cryptocurrencies carries a considerable risk of financial loss. Always conduct due diligence before making any trading or investment decisions.

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