It is well-established that cold wallets offer the most secure framework for cryptocurrency storage.
Unlike hot wallets—which function more like checking accounts—cold wallets are comparable to savings accounts. Because of this, storing cryptocurrency in a cold wallet provides optimal security, as well as peace-of-mind.
As discussed in greater depth here, cold wallets store assets offline, whereas the functionality of hot wallets is inextricably linked to the Internet. In that difference lies the key benefit of cold wallets because scammers, phishing criminals, and hackers can’t steal what they can’t access, and the absence of internet connectivity eliminates their means of access. Further, as those that utilize hot wallets quickly discover, a wallet is only as secure as the third-parties and services that participate in a given cryptocurrency transaction.
Biometric Security Features of Cold Wallets Provide Heightened Safety
Except for the brief moments of necessary communication with the network to confirm and record a transaction, cold wallets remain offline. This lack of connectivity greatly reduces the inherent vulnerability of cryptocurrency.
Another built-in safety feature of cold wallets is the requirement that a user confirm its identity directly with the cold wallet at the time it makes a transaction. Implementation of the proper security feature during that phase of the transaction renders the cold wallet effectively hacker-proof.
This, of course, begs the question: which features provide a cold wallet with the highest level of security?
With respect to cryptocurrency, user-authentication technology that is rooted in biometrics offers the safest security protocol for securing objects both real and virtual.
For this reason, Apple’s Face ID and Touch ID offer both haptic and retina-based unlocking features, which are widely considered to be state-of-the-art in their respective fields. When properly implemented, biometric features are virtually frictionless, as well. All that is necessary to unlock a device is to hold or look at it.
How to Choose the Most Secure Cryptocurrency Cold Wallet
There are many choices for cold wallets in the marketplace; among the most popular options are the TREZOR One, the Ledger Nano S and the KeepKey. Each of those three have their devotees—for reasons of price, size, and perceived security—but which is the most secure?
Surprisingly, not one of the leading cold wallet options is as secure as the state of technology makes possible. Each relies upon a username and password system, which is far less secure than biometric identification measures.
Fortunately, one startup has paired the security of biometric user authentication technology with the promise of cold wallets for cryptocurrency storage. ITBiometrics offers a cold wallet solution that verifies its user with the identification protocol that is least susceptible to hacking: personal biometrics.
The ITBiometrics Difference: Easy to Use and Hardest to Hack
Using the ITBx cold wallet is a virtually frictionless experience. Through enhanced biometrics, the wallet ensures that your private keys remain private.
It’s more than just a basic “reader.” While authenticating your fingerprint, the ITBx cold wallet detects your thermal signature and heartbeat. Because it is capable of storing multiple user fingerprints across a single device, it also allows you to safely share access to your wallet with someone else.
The “biometrics” component of the wallet eliminates the need to memorize PINs or passwords for entry during a cryptocurrency transaction. This alleviates the burden of managing a 64-character private key and it solves the problem of having to authenticate with multiple signatures across globally-distributed teams.
Biometric Security is the Best Type of Security for Your Cryptocurrency Wallet
When it comes to cryptocurrency—which, unlike traditional bank instruments, cannot be recovered if lost—it’s critical to select a wallet with the most formidable security protocol available on the market. Biometric technology provides a means of securing your wallet that is exponentially safer than passwords, PINs or any other mode of personal identification. ITBiometrics is the only company that makes a cryptocurrency cold wallet backed by the superior security of biometric authentication protocols.
This article was published by ITBiometrics, Inc. a leading biometric
hardware and software technology company that provides
user-authentication services to consumers, businesses, and
governments. The ITBiometrics Platform enables developers to build
high-security software solutions using the trusted ITBiometrics
fingerprint reader and hardware SDK. To learn more, visit