Educational Post

What Is Cold Storage?

Cold storage is when you keep your digital assets offline to make sure they are safe from hackers. In fact, what you keep offline are the private keys, not the assets. Private keys are cryptographic keys that grant access to your cryptocurrency holdings. Unlike hot wallets, which are connected to the internet and susceptible to online vulnerabilities, cold storage methods keep your private keys offline at all times.

How Does Cold Storage Work?

There are different ways to isolate your private keys from online exposure, including hardware wallets, paper wallets, and air-gapped systems.

Hardware wallets

Hardware wallets are physical devices designed to securely store private keys. These devices often resemble USB drives and offer an additional layer of protection through encryption and PIN authentication. By generating and storing keys offline, hardware wallets ensure that access to funds remains restricted from online threats.

Paper wallets

Paper wallets involve printing or writing down private keys on paper. These physical copies can be stored in a secure location, such as a safe or vault. Paper wallets are considered cold storage since the keys are entirely offline, reducing the risk of cyber attacks.

Paper wallets were popular in the early days of Bitcoin but are now discouraged due to risks. Paper is fragile and can be easily damaged. There are also concerns related to using a potentially infected computer or printer.

Another risk is the misconception that funds can be sent multiple times from the same address. When sending funds from a paper wallet, you must send the entire balance to avoid losses.

CKB Analysis:

CKB recently broke through a major support area and is currently retesting it. If the price fails to break above this retested level, we could see a continuation of the downtrend towards the next support area. It's advisable to wait before opening new positions to see how the price action develops.

Support Area: $0.000948-$0.0103

Resistance Area: $0.014-$0.015

Bitcoin is consolidating after testing the support area. More sideways movement is expected until Monday. Support and resistance levels remain the same.

BNB breached the major resistance area and reached a new all-time high. The price dropped due to BTC's rapid movements but is now respecting the support uptrend line. It might be a good idea to buy some BNB near the support area.

Support Area: $595-$605

MATIC broke the triangle in a downward direction, and the price dropped significantly after the breakdown. This is why we advised against opening new positions. Consider accumulating some MATIC if the price drops to the support area.

Support Area: $0.55-$0.58

The number of transactions processed by the Bitcoin network is nearing new all-time highs. The current monthly average transaction count is 617,000 per day, which is 31% above the yearly average, indicating a strong demand for Bitcoin blockspace.

AGIX analysis:

Price is currently testing the major support area. There might be accumulation at the support area before the next move, so consider opening a long position with a tight stop loss.

Support Area: $0.60-$0.65

Resistance Area: $0.756-$0.80

Bitcoin is moving sideways as expected. Some action may occur when global markets open. The first resistance is $67,000; a break above this will open the gates to the $69,000-$70,000 level.

JUP tested the support area and is now bouncing from there. If you have opened long positions, increase your stop loss below the support area. We may see a move towards the resistance area in the coming days.

Resistance Area: $1.14-$1.23

CME Group Futures Market Update

Open interest in the CME Group futures market has stabilized above $8 billion after hitting a record high of $11.5 billion in March 2024. This trend suggests that more traders from traditional markets are adopting a cash-and-carry arbitrage strategy. This strategy involves holding a market-neutral position by buying a long spot position and selling a short position in a futures contract of the same asset when it's trading at a premium.

CKB is unable to break above the resistance area, and the price is now heading towards the support area. This is a no-trade zone, and waiting for a test of the support area for new entries is better.

The winner of the giveaway will be announced within 24 hours.

ARKM analysis:

Price is currently testing a major support area and needs to hold this level. If the candle closes above the support level, then we may see some bounce from here. If you are opening a long position, then use a tight stop loss.

Support Area: $1.70-$1.80

Resistance Area: $2.15-$2.30

Bitcoin has once again dropped to the support area and is currently holding this level. The testing of the support area is positive, and we may anticipate some sideways movement around the support area. This could potentially represent the final dip before the next significant movement.