CoolWallet S

The CoolWallet S is the second product from CoolBitX, following on from their first generation CoolWallet. The Taiwanese FinTech company has been backed by a number of top VC firms to try and fulfil the company’s aim of building a bridge between blockchain and general public use and the aim of getting away from unsecured centralized institutions.

As such, it’s no surprise to see the CoolWallet S as the first hardware wallet that is 100% disconnected from the internet and inaccessible to hackers, even when it is connected to a computer. $120 puts it in the middle of the hardware wallets when it comes to price, but when you consider the new tech that this wallet brings then the price is extremely competitive.

The real breakthrough component of the CoolWallet S is the wireless connectivity to any device that supports Bluetooth through an encrypted connection. This means you don’t have to go looking for a crazy amount of USB connection cables to connect your wallet to your mobile device. Instead, you can just turn on Bluetooth and be connected in a matter of seconds. On the face of it this may seem like a less secure method of accessing your wallet, but because the wallet never has to connect to the internet, you aren’t making yourself available to hackers or those with malicious intent.

The wallet itself is a sleek design that is almost indistinguishable from a credit card. It can fit easily inside your wallet so can be taken on the go wherever you may need it. This does separate itself from the other hardware wallets, which are perhaps smaller but bulkier, although it could be easy to get the CoolWallet S mixed up with a bitcoin debit card should you possess one. There hasn’t been any official word, but perhaps a software update or a new model could make the CoolWallet S the first of its kind to double up as a wallet and debit card in one piece of hardware.

The wallet is also extremely diverse, having the ability to hold five different cryptocurrencies; Bitcoin, Bitcoin Cash, Ethereum, Litecoin and Ripple. We will have to wait and see if they are able to add the ability for more currencies at a later date depending on if it needs a firmware update on the card or if this can be done through an app update.

CoolWallet S Security

As with all hardware wallets, security is the main concern. CoolWallet S has taken this to a new level with the separation from online accounts with a company and instead has taken to 100% offline cold storage through phone connectivity. All you have to do is download the app and you are away.

CoolBitX have taken security one step further by taking complete control of the card manufacturing process. This removes the risk of a potential third-party manufacturer either creating faulty hardware or installing a backdoor security feature that they would not be aware of. As the company doesn’t have a firm reputation in the crypto-community, only time will tell if this is a good or bad thing.

The actual security of the wallet itself is where opinions could be divided. On one side you have the fact that the wallet is exceptionally easy to carry around and doesn’t need to be left at home like some of the bulkier options on the market. On the other hand its portability could be seen as a negative; it’s so easy to carry the wallet around that you are more likely to do so even when you don’t need to, increasing the chances of it being stolen or lost. Although that doesn’t mean all your cryptocurrencies are lost for sure, it does mean you would need to get a replacement which, at $120, isn’t a cheap situation to be in.

If the above scenario does happen and your wallet is stolen or lost, then there is a high chance that your mobile phone could be too, and that’s where you start to get serious issues. If someone sees you connecting the CoolWallet S to your phone, they could easily take extra notice and see the passwords you have set. If they stole both your wallet and phone they would have access to all your currencies, and because there are no accounts or connection to the internet there is nothing you can do to stop them being stolen.

The lack of reputation and history of CoolBitX also raises some red flags when it comes to the CoolWallet S. If the company goes under, how can you know your wallet is still going to work and have the latest software? Is the app still going to be updated? Is the app even going to work at all? If the answer to any of those questions is no, how can you guarantee that your currencies are safe and won’t just be lost? These are questions that CoolBitX are yet to answer and need to do so if they are to gain any trust in their newest flagship wallet and their brand in general.

Using your CoolWallet S

As it’s intended mainly for use on your mobile device, the CoolWallet S is extremely easy to use. All you have to do is download the app, connect to the wallet via the serial number and create your one-time password. Once that’s all done you generate your seed and hey presto, your wallet is set up. At the time of set-up, you can choose a 12, 18 or 24-number seed depending on the level of security you want. The wallet itself comes with a handy card you can use to write your seed down, so you can keep them all in one place, away from the wallet itself.

Receiving and sending your currencies is also extremely easy. The mobile device can read QR codes and produce them for wallet addresses, so you don’t need to worry about accidentally adding the wrong address, and the transaction amount can be added in either fiat or crypto currency.

Because you don’t have to create an account with anybody you don’t have to go through those pesky identity checks before sending and receiving bitcoin. It also means that the amount stored on your wallet isn’t recorded anywhere except the wallet itself, making it completely and utterly private.

CoolWallet S Summary

There is no arguing that the CoolWallet S has set new ground when it comes to usability and connectivity to your Bitcoins and other cryptocurrencies. The fact that your wallets are 100% disconnected from the internet and that you don’t have any accounts which store your information is fantastic, and really supports the company’s aims of bringing the public and cryptocurrencies together and navigating away from centralized banking. The wallet itself looks great and is extremely easy to take anywhere due to its size and resemblance to a normal credit card.

What worries me is that by creating a wallet that is so easy to carry with you, CoolBitX have created one that could be easy to steal or lose. Despite the multiple levels of security that you would expect from a wallet, it just scares me that if someone got your wallet and phone they would have access to all your cryptocurrencies if they knew (or could guess) your passwords. Also, the lack of reputation of CoolBitX and what would happen to your currencies if the company goes under raises major red flags.

Bitcoins.netgives the CoolWallet S an overall rating: 4.0 out of 5