Cryptocurrency has made its way into everyday life, becoming a popular way to store assets and conduct transactions. With the growing popularity of digital money, the question of its reliable storage arises. For this purpose, hardware wallets for cryptocurrency are increasingly used.
They allow you to protect assets from hackers due to autonomous operation and the absence of a regular connection to the Internet. In this article, we will break down what a hardware cryptocurrency wallet is, how it works, and compile the top hardware wallets, including popular models Ledger, Trezor, Tangem Wallet and others.
Cryptocurrency Wallets and Their General Features
A cryptocurrency wallet is a software or hardware tool for storing and managing cryptocurrency assets. Its main function is to store private keys that provide access to digital assets and the ability to conduct transactions. Wallets are divided into hot and cold wallets.
Cryptocurrency wallets are categorized into two categories:
- Hot ones are those that are connected to the Internet. This can be a browser-based wallet/exchange account, desktop or mobile versions in the form of applications installed on the device. They cannot be considered reliable, as the mere connection to the network increases the risk of funds theft. Fraudsters use keyloggers, phishing and other tricks to get what they want.
- Cold ones are the autonomous offline storages that work without an Internet connection. The keys necessary for operation can be stored on a USB drive, a piece of paper or a physical device specially designed for working with cryptocurrency, a hardware wallet.
Hardware Wallets and Their Main Advantages
A hardware wallet for cryptocurrency is a specialized device designed to securely store assets and the keys to them. Unlike software solutions that store data on a computer or mobile device, hardware wallets isolate private keys in a specially protected chip, minimizing the risk of information leakage or hacking.
The main purpose of a hardware wallet is to ensure that private keys are securely stored. These devices never reveal the keys: the data is sent to the wallet only for signing and then returned back, already encrypted. This means that even if your computer or smartphone is infected with a virus, access to your funds remains protected.
In addition, the wallet only connects to your computer or smartphone when needed, which also reduces the likelihood of a hacker attack. Most of these devices have their own display and buttons to confirm transactions, allowing users to control every action and avoid data tampering.
Thanks to these features, hardware cold cryptocurrency wallets are considered one of the safest ways to store assets, ideal for both beginners and experienced investors.
Top Hardware Wallets
Let's take a look at the best wallets for hardware cryptocurrency storage.
Ledger
This manufacturer's products are in high demand from cryptocurrency investors and traders. Ledger hardware wallet is available in four different variations such as Stax, Flex, Nano X and Nano S Plus.
The last two variants are the most affordable yet limited in functionality, have a monochrome display and basic compatibility with PCs and mobile devices.
Stax and Flex are equipped with an improved e-ink screen, NFC module and additional accessories. They are also characterized by increased battery life (up to 10 hours in normal mode and up to 150 transactions).
Read more about Ledger wallets in our article.
Trezor
Trezor hardware wallet is available in three versions Model One, Safe 3 and Safe 5. The first two models priced at $49 and $79 will suit the casual use. There are two-button controls, a small monochrome display and support for more than a thousand cryptocurrencies.
The third model (Safe 5) costs $169 and features a touchscreen with durable Gorilla Glass 3 glass and enhanced security. A distinctive feature of the more expensive solution is the function of anonymizing transactions.
We dedicated this article to the Trezor crypto wallet review.
Tangem Wallet
A unique product, different from the rest hardware wallet Tangem Wallet is a wallet in the format of a card with NFC. It is a convenient and portable device that connects to a smartphone to manage cryptocurrencies. Private keys are generated and stored on the card, eliminating the risk of theft via the Internet.
The price for a set of two cards is $54.90.
You can learn more about the wallet in our article «Tangem Wallet: Cold Storage for Your Digital Assets».
SafePal
SafePal hardware wallet is a wallet founded in 2018 and launched in 2019. At the beginning of its development, the wallet received support from the major exchange Binance, which ensured the trust of users.
Users' funds are protected thanks to encryption, CC EAL5+, self-destruct mechanism in case of hacking. The owner of the wallet can access funds with a PIN and password, as well as two-factor authentication.
The basic model of the wallet, the SafePal S1, costs $49.99. The company also offers more advanced models, SafePal X1, SafePal S1 Pro, which are priced at $69.99 and $89.99, respectively.
We also recommend reading our article «How Secure SafePal Is? A Full Wallet Review & Analysis».
BitBox
BitBox02 is a compact Swiss-made cold wallet that supports major cryptocurrencies and ERC-20 tokens. The device features a microSD card backup function and is characterized by a simple interface. It is presented in two variants: one supports only Bitcoin and the other one is multicurrency.
BitBox02 is priced at $155. It is a great choice for those who appreciate convenience and reliability.
KeepKey
The products of this brand were worth including in our top hardware wallets, if only because the offered devices allow not only sending and receiving cryptocurrency transfers, but also engaging in exchange in the bundled application thanks to the ShapeShift service.
The list of supported assets is quite huge, it includes stablecoins such as USDT, USDC, and others. Confidential data is protected with a password and PIN-code for access. A large (by the standards of cryptocurrency wallets) 3.12” OLED display is responsible for displaying information.
The cost of the wallet is $78.
ELLIPAL
ELLIPAL offers three cold storage options for customers to choose from that are Titan Mini, Titan and Titan 2.0. The first device is the most compact, with a small screen and a battery for two hours of active use. The other two devices have increased autonomy to 5 hours, added high-tech screens and energy-saving features.
The mini version costs $99, while the two improved versions cost $139 and $169. Remarkably, in terms of security technology, there are virtually no differences between all three wallets.
CoolWallet
CoolWallet is a hardware card wallet ideal for carrying in your wallet or pocket. It comes in S ($99) and PRO ($149) versions with both protected by chips that the creators say are also used by the U.S. military.
Another advantage of CoolWallet is that it has a hot wallet module and manages funds via an app. Both traditional password and biometric authentication (finger tap) can be used for protection during transactions.
Cypherock
The developers of Cypherock have used technology in their new Cypeherock X1 wallet to encode and split the original phrase into multiple parts that can be stored in different locations for greater security.
This decentralization also allows for efficient distribution of cryptocurrency resources to trusted individuals, for example, dividing it among relatives like an inheritance.
Such a hardware wallet can be bought for $199.
Choosing a Hardware Wallet
Now that you have an idea of the most popular brands/manufacturers, it's time to answer to figure out how to choose the best hardware wallet among them. To do this, you need to check your favorite model for compliance with four main criteria:
- Security. The device should be protected from hacking, use various encryption technologies, be resistant to physical damage.
- Interface. The easier it is to navigate and the more useful features that facilitate the management of funds in the vault, the better.
- Compatibility with cryptocurrencies. It is better to buy a hardware wallet for cryptocurrency with a clear understanding of what digital coins you plan to store there.
- Cost. The last but not the least point on the list. Prices for wallets start from a couple dozen dollars and can reach several hundred. Not everyone is ready to overpay for additional functions.
Wallets for Hardware Storage of Cryptocurrency
In today's environment, online fraudsters use clever tricks and advanced software to steal assets, and popular exchanges are periodically subjected to hacker attacks and lose their users' money. This forces people to abandon web services and apps, opting for cold storage of cryptocurrency.
Hardware wallets present an opportunity to store assets safely. There are a huge number of such wallets on the market, and each model differs in its functionality, compatibility with certain digital coins, interface and security. To make the right choice, read the specifications of the device and reviews of other buyers on the Internet.
