Data of the day: Can Cold Wallets be Hacked?

There are many within the crypto community that believe that cold wallets cannot be hacked. The latest study by wallet maker Ledger has thrown some interesting insights into this notion.

Today, we analyse whether it is possible to hack cold wallets by taking a critical understanding of blockchain technology.  

Why are Cold Wallets Preffered by Crypto enthusiasts

One of the critical elements of blockchain technology is that it is immutable. This means that blockchains are effectively impossible to manipulate.

Since the existence of blockchains effectively guarantees the records of cryptocurrencies, currencies such as Bitcoin and Ethereum cannot be modified by third party agents.

However, this does not mean that cybercriminals cannot break your wallet security and steal your cryptocurrencies. Especially when you have porous security features on your wallets to prevent cyber attacks.

As we all know once a third party is able to decipher your wallet passwords and access your portfolio and sends your crypto assets to another wallet there is no way to reverse such transactions.

This is why many turn to different wallets that provide different security features and cold wallets are largely considered the safest. Cold wallets are devices that are not connected to