Cold Wallet Adoption: A Secure Future for Crypto Storage Cryptocurrency adoption is surging, and cold wallets even more so with the rising security concerns. Tangem offers enhanced security and user-friendly solutions to the growing cyberattacks through advanced safety features.

Cryptocurrency use has gained immense traction in the world, and by the end of this year, it will have bagged more than 560 million users. This increasing user base has created a growing demand for long-term storage options. Parallel to such trends, the market volume of cold wallets around the world is said to increase significantly, from $442.6 million in 2021 to $3.6 billion by 2031, with a compound growth rate (CAGR) of 23.7% from 2022 to 2031. This shift represents the concern towards security and ownership of private keys in the cryptocurrency environment.

Security remains the top issue for those who own cryptocurrencies, especially since losses from cryptocurrency hacks surged by 21 per cent, reaching $2.2 billion in 2024 alone. An astonishing but not surprising amount of these attacks targeted hot wallets and centralized platforms, which are evidently insecure. Historical incidents such as the Mt. Gox hack, which resulted in a loss of $450 million, and the FTX bankruptcy and subsequent collapse, which resulted in a $32 billion loss, highlight the importance of secure storage solutions. Cold wallets, which remain offline, effectively eliminate most of the hacking risks as the most secure storage methods. By allowing users full control over private keys, they address risks linked to exchange mismanagement, ensuring that assets remain protected under the owner's stewardship.

The Need for Cold Wallets

Adoption trends further underline the growing preference for cold wallets. According to the Fidelity Digital Assets Institutional Report, 65% of investors plan to buy or invest in digital assets, while more than one-quarter agreed that their perception regarding cold wallets changed dramatically over the last year. This shift is fueled by heightened awareness of security concerns and the need for reliable storage amidst volatile markets. Furthermore, major firms like MicroStrategy have invested largely in Bitcoin, acquiring approximately 51,780 Bitcoins valued at around $4.6 billion. Regulatory bodies in nations such as Japan have also recommended cold wallets for cryptocurrency exchanges to comply with investor protection standards.

The financial logic of using cold wallets is compelling. Premium models typically cost between $50 and $200, protecting against the potentially devastating financial losses from cyberattacks. Some providers even include theft insurance of up to $1 million, enhancing their value proposition. Hence, individuals and institutional investors are increasingly attracted to this method.

The Provision of Cold Wallets

Tangem, a Swiss-based company founded in 2017, has created its Tangem Wallet to meet the growing demand for storing cryptocurrency. Initiated as a consumer-focused product in late 2021, the wallet has become renowned as the leading and most secure wallet, with more than 500,000 consumers within three years. Current sales have been boosted by its adoption in areas such as North America, Germany, France, the UK and Australia, achieving a remarkable 5x sales growth in November. The wallet is designed for both beginner cryptocurrency users and experienced investors who want to store Bitcoins securely and comfortably.

Tangem addresses common concerns associated with cold wallet adoption, particularly for users unfamiliar with such technologies. Crypto users face numerous challenges with current hardware wallets, including complex UX and onboarding, security vulnerabilities, insufficient functionality, and data privacy concerns. Tangem resolves these issues with an easy-to-use design in card-like and ring-like forms, wallet activation in just three minutes, and a seedless approach to eliminate the risk of compromised seed phrases and hacker attacks. Tangem offers an all-in-one solution for storing, buying, transferring, and staking cryptocurrencies, all while maintaining the highest level of security. As a decentralized self-custody wallet, it ensures complete data privacy and full ownership of assets and keys. It removes the need for intermediaries and makes secure crypto management accessible to everyone.

The Tangem wallet setup process is straightforward and supported by an integrated mobile app that simplifies wallet management. The card-like and ring-like shapes are equipped with NFC (Near Field Communication) antennas that enable smooth connection with NFC-enabled smartphones. It's designed to include EAL6+ certified microchips that make it resistant to invasive as well as non-invasive attacks. By generating private keys offline, Tangem ensures that these keys remain secure and inaccessible to potential attackers, enhancing overall asset protection. Tangem's analytics reiterate its impeccable reputation, as none of the 2.5 million cards produced have been hacked.

Security and Accessibility of Cold Wallets

As cryptocurrency ownership grows, now encompassing 6.8 per cent of the global population, the demand for secure storage solutions continues to rise. High inflation rates, the introduction of Bitcoin, and increased venture capital investments in crypto startups are further driving adoption. Cold wallets are being popularized, though lack of public knowledge often results in misunderstandings of the concept and the purpose of corporations like Tangem.

By prioritizing security, user experience, and regulatory compliance, Tangem demonstrates the value of cold wallets in guarding cryptocurrency assets. Its easy UX, seedless approach, and diverse form factors further enhance its functionality. Its rapid growth reflects the increasing demand for reliable storage solutions and the evolving preferences of crypto holders in a dynamic digital landscape. Adopting cold wallets is no longer a niche choice but a logical step for those aiming to secure their investments and embrace the future of decentralized finance.