Due to the large number of hacks and thefts of funds that have happened in recent years, with a trend of growth in terms of losses. These losses, on average, amount to about $ 2.5 million a day, according to Hartej Sawhney, a cybersecurity specialist who is a member of Zokyo.

According to him, this figure is remarkable if it is taken into account that the money exchange offices do not always report the robberies they suffer. This was explained during his panel focused on security, as part of the BlockConf Digital, virtual event held this May 25 and Tuesday 26.

Sawhney assured that his data comes from recent figures from the firm Ciphertrace. Only in robberies and hacks there were losses of more than a million dollars a day. If fraud and other criminal practices are added, that average exceeds $ 12 million.
According to the latest report available on the site of this firm.

For the computer security specialist, some investment firms and other companies in the security area, is not taken as seriously as it should.

The biggest threat with cybersecurity is usually the human being. If someone in the company opens the wrong email or makes a mistake, then the funds are compromised.

Hartej Sawhney, Cybersecurity Specialist, Zokyo

 

The cybersecurity expert assured that companies in this industry should be more careful with the security of their products. He especially emphasized the importance of looking for external teams to audit and test their systems, as a method to improve their security.

Likewise, it recommended using as few as possible hot wallets or purses connected to the internet. In his view, cold wallets are safer. Although not infallible, added Sawhney.

What are cold wallets?
Physical wallets mean the highest degree of security and possession of your cryptocurrencies, since they are not connected to the network, a remote attack is practically impossible, unlike if you have your cryptocurrencies online. In this case you would be the only holder of the private key, since having these keys in your possession you become the sole owner of the backed funds, taking to the maximum expression the term of decentralization that fosters a cryptocurrency.

The best known and safest devices are the trezor, ledger and coolwallet, which I recommend to buy only on their official page. Although these devices accept the vast majority of cryptocurrencies listed in COINMARKETCAP, I recommend that you check beforehand in case you have funds in a new project that is not yet supported by the physical wallet.

Cold wallets are not for all investment styles, since using a device like these assumes that your funds will be kept in the long term (unless there is a rally), that you will save more than the value of the device and that These funds will not be used regularly for trading operations.

This is because when you store bitcoin in a cold wallet, they go offline, so by performing constant operations you must be making regular deposits and withdrawals having to absorb the transfer costs involved.

Advantages and disadvantages of cold wallets

Advantage
*High security in the handling and protection of cryptocurrencies
*Controlled portfolio and fund backup
*International shipping on device purchases
*Protection of funds against remote attacks
*Full custody of your money
*Full custody of your private keys
*Zero exposure of private keys to the internet
*Affordable costs that make your investment more profitable
*ou can buy with bitcoin and bitcoin cash

Disadvantages
*Not useful for trading activities
*Acquisition cost
*Waiting time for international shipping
*The amount of your investment decreases compared to what you could save in an online wallet
*High risk of the device in the event of loss, accident, theft, etc.
*Too many steps to be able to make a transfer (this due to the level of security)

This is how you can see for the most part having a cold portfolio is positive, even though you require an initial investment that you possibly had thought to use to buy more bitcoin, but in the long run you will notice that it turns out to be one of the best investments.

COOL WALLET

TREZOR

LEDGER WALLET