Understand cold wallets
Cold wallets store private keys offline, away from online threats such as malware or spyware. They also:
- Do not connect to the internet nor interact with any smart contracts, avoiding risks from digital vulnerabilities.
- Are primarily used to send and receive digital assets securely.
Use hardware wallets as cold storage
Hardware wallets are physical devices (like USB or Bluetooth devices) commonly used for cold storage to secure cryptocurrency. They:
- Store private keys externally, not the cryptocurrency itself.
- Include popular examples like Trezor and Ledger.
Understand local wallets
Local wallets are digital wallets installed on a device such as a computer or smartphone. These wallets:
- Store private keys directly on the device, allowing users full control over their assets without the involvement of third parties.
- Are accessible only on the device where they are installed.
- Include popular examples like Exodus and Jaxx.
Add a Local, Hardware, or Cold Wallets to your account
Using xPub/yPub/zPub keys
xPub/yPub/zPub keys are extended public keys used to track all transactions for Bitcoin and similar cryptocurrencies. They allow services like ours to monitor wallet activity without exposing your private keys.
To find your wallet's xPub key (or equivalent), follow the instructions provided by your wallet provider. Then, on the Add wallet page of your CoinTracker account, search the provider by wallet name or blockchain and add the corresponding xPub/yPub/zPub key.
Using a public address
If your wallet does not support extended public keys, you can still add it by using the public address. A public address is a string of letters and numbers that allows you to receive assets. It cannot be used to access your funds. To access or control your funds, someone would need access to your private key.
When you connect a wallet through this method, you’ll need to label transactions to and from non-supported wallets as “transfers” to keep your records accurate.
Handling wallets without xPub exports
If your wallet doesn’t allow exporting extended public keys, you can use an open-source tool to generate them from your seed phrase or mnemonic phrase, which some wallets provide when creating a new wallet.