In today’s fast-evolving digital asset landscape, securing your cryptocurrency is more important than ever. One of the most effective and cost-efficient solutions is the Ownbit cold wallet, which transforms an old, unused smartphone into a fully functional hardware-grade wallet—no additional hardware purchase required. This guide walks you through the complete process of setting up and using your Ownbit cold wallet securely, from initial setup to executing transactions, while keeping your private keys completely offline.
Whether you're new to crypto storage or looking for a smarter alternative to traditional hardware wallets, this step-by-step tutorial ensures you maintain full control over your assets with maximum security.
👉 Discover how to protect your crypto with a secure cold storage solution today.
What Is the Ownbit Cold Wallet?
The Ownbit cold wallet leverages air-gapped technology by turning one of your smartphones into a permanently offline device—your cold wallet—where private keys are generated and stored. A second, internet-connected phone acts as an observation wallet, allowing you to monitor balances and initiate transactions without ever exposing your keys.
This dual-device model ensures that sensitive operations like transaction signing happen in isolation, protecting against remote hacking, phishing, and malware attacks.
Core Keywords:
- Cold wallet
- Crypto security
- Offline storage
- Air-gapped wallet
- Transaction signing
- Observation wallet
- Private key protection
- UTXO management
Step 1: Setting Up Your Cold Wallet
Before beginning, gather two smartphones:
- Device A (Cold Wallet): Will be permanently disconnected from all networks (Wi-Fi, cellular, Bluetooth).
- Device B (Observation Wallet): Remains connected to the internet for daily use.
Setup Process:
- Install the latest version of the Ownbit app on both devices while online.
On Device A, disable all connectivity options:
- Remove SIM card
- Forget Wi-Fi networks
- Turn off Bluetooth and mobile data
Open the Ownbit app on Device A and tap “Create Wallet”.
- If restoring from backup, choose “Import Wallet” instead.
- Select “Personal Wallet” (choose “Multisig Wallet” if setting up multi-signature support).
- Choose between 12 or 24-word recovery phrase length.
- The app will generate a unique Cold Wallet ID—this identifies your offline wallet.
- Enable mainnet cryptocurrencies (e.g., BTC, ETH, TRX).
⚠️ Note: Only enable native coins here. Tokens like ERC-20 or TRC20 should be added later in the observation wallet. - Confirm which coins are supported—grayed-out options are not yet compatible with cold wallet functions.
Once completed, you’ll arrive at the cold wallet home screen.
🔐 Critical Reminder: Write down and securely store your recovery phrase. Without it, lost access means permanent loss of funds. With it, your wallet can always be restored.
Step 2: Creating an Observation Wallet & Adding Assets
Now switch to Device B (your observation wallet) to link it with the cold wallet and begin tracking your holdings.
Linking the Wallets:
- On Device A (cold wallet), tap the blue wallet bar at the top to open the wallet details.
- Tap “Create/Configure Observation Wallet” (on iOS: go to Wallet Management > Create/Configure Observation Wallet).
- A QR code will appear—this contains encrypted wallet information needed to sync.
On Device B:
- Open Ownbit and tap the QR scanner (usually found in the top-right corner).
- Scan the QR code displayed on Device A.
- Choose the blockchain assets you want to track (e.g., TRX, BTC, ETH).
- After scanning, the observation wallet is created and shows real-time balance updates.
💡 Both wallets display the same receiving address, so you can safely share it from either device when accepting payments.
👉 Learn how secure crypto storage can safeguard your long-term investments.
Step 3: Sending Transactions Securely
All outgoing transactions start on the observation wallet but require approval from the offline cold wallet—a crucial security layer.
Transaction Flow:
- In the observation wallet (Device B), tap Send.
Enter:
- Recipient address
- Amount
- Network fee (if applicable)
- Confirm transaction details and tap Send again.
A signing QR code appears—this contains unsigned transaction data.
- Switch to Device A (cold wallet) and scan this QR code using its built-in scanner.
- Enter your wallet password to unlock and sign the transaction.
- After successful signing, a new broadcast QR code appears.
- Return to Device B and scan this final code to broadcast the signed transaction to the blockchain.
✅ Once confirmed, the transaction appears in your observation wallet under transaction history.
📌 Remember: The cold wallet never connects to the internet. It only scans QR codes and generates signatures locally—your keys remain protected at all times.
Frequently Asked Questions (FAQ)
Q: Why can’t I scan the transaction QR code?
A: Large QR codes may fail due to size limitations, especially with UTXO-based coins like Bitcoin (BTC) or Dogecoin (DOGE). This happens when too many unspent outputs are included in a single transaction. To fix it:
- Reduce the send amount to minimize UTXOs used.
- Use the “Custom UTXO” option in the confirmation screen to manually select fewer inputs.
Q: Can I upgrade my cold wallet software?
A: Yes—but carefully. Since the cold device is offline, you must:
- Back up your recovery phrase securely.
- Delete the Ownbit app from Device A.
- Briefly reconnect to Wi-Fi or cellular data.
- Download and install the latest app version.
- Disconnect from all networks again.
- Restore your wallet using the recovery phrase.
This maintains security while ensuring compatibility with new features.
Q: Do I need two phones forever?
A: Yes—the system relies on separation between online and offline environments. Reusing one phone defeats the purpose of air-gapped security.
Q: Are ERC-20 tokens supported?
A: Yes—but only in the observation wallet. You don’t need to enable them in the cold wallet itself. Once linked, you can send and receive tokens just like native coins.
Q: What happens if I lose my cold phone?
A: As long as you have your recovery phrase, you can restore access on another device. Never store digital copies of your phrase—use physical backup methods only.
Q: Is this as secure as hardware wallets like Ledger or Trezor?
A: When used correctly, yes. The Ownbit method provides comparable air-gapped security by isolating private keys from network exposure—often at zero extra cost if you already own a spare phone.
Best Practices for Long-Term Security
- Store your recovery phrase in a fireproof safe or metal backup solution.
- Never take screenshots or type it on any connected device.
- Regularly test recovery procedures with small amounts before relying on them.
- Keep both apps updated via trusted sources only.
👉 Start protecting your digital assets with a proven offline storage method now.
By following these steps, you’ve turned an old smartphone into a powerful tool for securing your cryptocurrency. The Ownbit cold wallet offers enterprise-level protection without enterprise-level costs—making advanced crypto security accessible to everyone.
With proper setup and disciplined habits, your funds stay safe from online threats while remaining fully under your control.