5. Cold wallets
A cold wallet is an offline cryptocurrency wallet that requires either writing down the private address on a piece of paper that only the owner has access to or purchasing a physical device that securely stores cryptocurrency funds. The time it takes to store your cryptocurrencies has drawbacks, and if you’re trading, the process of consistently transferring funds between an exchange and a cold wallet can result in repetitive withdrawal fees. A cold wallet provides peace of mind by ensuring that only you have access to your funds.