Now that you can officially do everything from buy a burger to pay a phone bill with crypto, it’s pretty reasonable to say that crypto is here to stay. And as cryptocurrencies become more mainstream, people are looking for convenient ways to keep their coins safe while also making them easy to access if needed.
usb flash drives are an easy and cost-effective way to store cryptocurrency wallets. In this guide, we will talk about important concepts like what is a cold wallet and why some cryptocurrency holders back up their cold wallets on usb flash drives. We’ll even give you some tips on how to put crypto on a usb drive yourself!
Reading: Bitcoin flash drive
what is a cold wallet and why should I have one?
private cryptographic keys are the only way to prove ownership of cryptocurrencies. But if you’re storing your crypto keys in an “active” wallet connected to the internet, you may be leaving them vulnerable to cybercriminals. Cryptocurrency thieves make billions a year and it is often difficult to recover cryptocurrencies after they have been stolen.
This is why many crypto experts advise people who own a large amount of crypto to only store a small number of crypto keys in a hot wallet at any one time. Think of a hot wallet as a real wallet – you wouldn’t keep your entire cash savings account in there! the rest must be in a cold wallet, also called a hardware wallet, where your private cryptographic keys are stored offline.
Because a cold wallet is not connected to the internet, hackers have no way of accessing the crypto inside. only someone with physical access to the cold wallet can use the cryptographic keys it contains, and a good cold wallet should also be protected by additional security layers like encryption and two-factor authentication.
types of cold wallets for cryptocurrencies
Dedicated hardware wallets are one option for a crypto cold wallet. These specialized wallets come in all shapes and sizes, and most come with apps that allow you to easily move crypto in and out of the wallet. however, dedicated hardware wallets are expensive: most cost between $50 and $200.
Paper wallets are another type of crypto cold wallet that is less convenient, but extremely secure if done correctly. To create a paper wallet, you will actually print your cryptographic keys on physical sheets of paper, using an offline printer, and store them in a secure location. (This option is also great if you appreciate the irony of storing futuristic digital currency on plain paper.)
so, there are usb flash drives. Many of us use flash drives every day in our lives, and most people at least know the basics of how they work. It turns out that they are also an efficient and affordable way to store cryptocurrencies.
should you store your cold wallet on a usb flash drive?
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usb flash drives have several advantages for storing cold wallets:
- cost: usb flash drives are much more affordable than most hardware cold wallets. bulk usb drives are an especially cost-effective option that can also be useful for many uses besides cryptography.
- reliability: a flash drive uses reliable solid-state flash memory to store your wallet. while flash drives aren’t invincible, they are tough enough to survive most everyday mishaps.
- availability: usb flash drives are readily available whenever and wherever need them. order via direct usb stick, and you’ll even have the option of ultra-fast express delivery for your usb drives.
- flexibility: a usb flash drive is a blank canvas that (in for the most part) allows you to install any wallet, operating system and/or encryption software you choose.
however, there are also some important caveats to keep in mind:
- A usb flash drive is not the best option for a primary long-term cold wallet. other cold wallet solutions (particularly dedicated hardware wallets) are more durable and secure.
- usb flash drives have a write cycle limit which can cause them to eventually deteriorate if used repeatedly over a period of time. prolonged period of time.
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As long as you are aware of these limitations, a usb flash drive can be a great option for flexible and affordable crypto storage.
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keep your crypto secure on a usb flash drive
It is essential to always keep in mind the fundamentals of cryptocurrency security when creating backup crypto wallets on usb drives. Here are some essentials to remember:
- A cold wallet is only good as long as it stays cold. When connecting your usb wallet to your computer to move crypto in and out, be sure to disconnect your internet connection first.
- Do not use the usb drive containing your wallet for anything other than the wallet.
- Keep applications such as your crypto wallet and operating system up to date with the latest security patches.
- You should always have multiple backup copies of your crypto wallets and keys. keep these physical backups in different locations. By the way, here’s another great reason to use usb drives: it’s extremely affordable to create multiple backups.
- don’t reuse passwords (in your wallet or anywhere else) and use a password manager. passwords safe and encrypted to keep all your passwords safe and organized.
- never connect your usb wallet to a public computer or other device that you don’t fully trust, especially if that device is connected to the internet.
what kind of usb drive should i use for my wallet?
Almost any usb flash drive can store a crypto wallet. One big advantage of cryptocurrencies is that most wallets and keys take up very little space because they don’t store the entire blockchain, just the necessary keys. so while there are tons of different sizes of flash drives available, a basic 1gb flash drive is enough for most crypto wallets.
here are a few things worth considering when choosing a usb drive for your wallet:
- always choose a new, blank usb drive that has never been used before for your crypto wallet.
- a dual usb-c and usb-a drive can help ensure that your crypto wallet will always be accessible. (See our USB-A vs. USB-C primer to get up to speed on the different connectors.)
- USB Memory Direct’s custom USB drive services allow you to create a USB drive with exactly the characteristics you want. , including options like data preloads, hidden files, and more.
can i put my crypto wallet on a usb drive?
Not all crypto wallets offer cold storage options. Some wallets are primarily designed to be used as active wallets for small daily transactions. therefore, when choosing a crypto wallet, look for one that offers easy and secure cold storage options.
how to put crypto on a usb drive in five steps
See also: Why Dollar-Cost Averaging Into Bitcoin Is the Best Strategy | The Motley Fool
Putting a crypto cold wallet on a usb drive is not difficult, but it does require a few preparation steps. this is what you will need to do:
1. create a bootable usb drive.
The first step in preparing your usb drive for cryptographic storage is to make it bootable by installing a portable operating system. this allows you to add encryption and security that will give you the necessary protection against cybercriminals.
We have an easy to use guide that will show you how to create a bootable usb drive. When you’re done creating the bootable usb, make sure you eject the usb drive properly from your computer.
2. install the crypto wallet of your choice on your computer.
Choose a crypto wallet with cold storage features and run the installer to install the application on your computer. you will use this computer to generate and sign the transactions that will move the funds in and out of your cold wallet.
3. disconnect your computer from the internet.
disconnect your ethernet connection and/or turn off your wi-fi before reconnecting the usb drive. once again, you should only plug your cold wallet usb drive into computers that are not currently connected to the internet.
4. install the wallet software on the usb drive.
while the internet is offline, reconnect the usb drive you will use for your cold wallet. now, it will run the cold wallet installer on the usb drive and install the wallet there. Make sure you have a strong password stored in your password manager, and set up any additional security features like seed phrases or two-factor authentication that you’d like to use.
5. transfer your private keys from your hot wallet to your cold wallet.
Use your active wallet to generate and sign transactions that move the cryptocurrency you want to transfer to your cold wallet address. Once your wallet has generated the transaction, you do not need to reconnect the USB drive to receive the coin in your cold wallet. it’s already stored on the blockchain!
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Whether you’re storing crypto, media, project files, or anything else, USB Direct Drive gives you a versatile and cost-effective way to do it. Get a quote on your custom flash drives today, or check out our wholesale usb drive deals for our best prices.
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