A cold wallet represents the possibility of storing cryptocurrencies, but unlike a hot wallet, it stores cryptographic keys offline, which are usually stored on a separate device that connects to a computer or phone only when a transaction is made.
As a result, a cold wallet is much more protected against cyber-attacks and is suitable for storing large sums of cryptocurrencies that users intend to hold rather than exchange. Due to no connection to the internet, a cold wallet is less suitable for regular and fast transactions, as their execution is slightly slower.
The cold wallet itself will be in the mobile application. A physical card will be required to confirm transactions. Users will be able to order it for a one-time payment when creating their user account or at any time later.
The card will not be a payment card, so it will not be possible to make direct crypto payments. It will allow inbound and outbound transactions and a review of the transaction history.
Unlike the hot wallet, on which transactions will take place quickly and with a single-phase authentication, before performing a transaction from the cold wallet, a three-phase authentication (3FA) will be required: • with a fingerprint, face recognition or password • with an OTP, sent to his mobile phone • with AlphaWallet's card Users will be able to exchange assets between the hot and cold wallet through transactions.