Security is one of the most important factors that users focus on when it comes to storing cryptocurrency. The most secure and hack-proof option is a cold cryptocurrency wallet that only the owner has access to.
We will explain how a cold cryptocurrency wallet works and how it differs from a hot one, as well as present the top cold cryptocurrency wallets.
What Is a Crypto Wallet
A cryptocurrency wallet is a software or hardware for storing and transacting cryptocurrency. Although the assets reside on the blockchain network, a personal cryptocurrency wallet allows the owner to interact with them and provides security of access.
When the wallet is opened, the program generates two keys: a public key and a private key (public and private). The public key plays the role of an address. Having access to it, other users can send cryptocurrency to the owner. The private key is an analog of a password, without which it is impossible to access the assets. In addition, the wallet generates a seed phrase, which allows you to restore the keys in case of their loss.
To make a transaction, the wallet owner is authorized with a private key. Reliable cryptocurrency wallets can also use other methods of protection, such as two-factor authentication. The user can then send assets to another crypto owner's public address or share their own to receive the transfer.
There are several types of wallets. They can be custodial and noncustodial, hardware and software or hot and cold.
Cold Wallets Features
A cold cryptocurrency wallet is a physical device (less commonly, an app) for storing crypto assets offline. This feature distinguishes cold wallets from hot wallets, which are permanently connected to the network.
In addition, the private keys in a cold wallet are stored only by the owner of the funds — the exchange or other platform on the basis of which the hot wallet works does not have access to them. As a result, cryptocurrency is maximally protected from fraudulent attacks and hacks.
There are three types of cold wallets:
- Hardware. The best cold wallets due to their quality protection from hacks and ease of use. These are physical devices that connect to your computer or phone directly or through a cable/adapter.
- Paper-based. This is a private key written down on paper or presented in the format of a printed QR code.
- Software. Software that is installed on the device, after which it is disconnected from the network. A less secure option than a hardware wallet, but more secure than hot storage.
While cold wallets are less convenient for transactions than hot wallets, they offer better security and are often used for long-term storage of large sums. We offer our ranking of the best cold cryptocurrency wallets in 2024.
Popular Cold Cryptocurrency Wallets Compilation
Ledger
Our ranking is topped by Ledger, a manufacturer of devices that support 5500+ coins and tokens. The brand's products are compatible with 20+ software wallets. It also has its own Ledger Live app for mobile and desktop devices.
Users can choose from a range of Ledger cold wallet models and a selection of optional accessories. In addition, they can purchase Ledger Recover, an encrypted backup of the recovery phrase. The service allows users to regain access to assets through identity authentication even if the private key and seed phrase have been lost.
Trezor
Trezor is an affordable and reliable cryptocurrency wallet that supports over 9,000 currencies and tokens. The company uses open-source code, allowing users to see the quality of protection for themselves. There is also a Trezor Suite app for asset management.
Trezor cold wallets are available in three models: the basic Trezor Model One, the Trezor Safe 3 with enhanced security thanks to a password and Secure Element chip, and the Trezor Model T with touchscreen. There is an option to back up the wallet to other Trezor devices, Trezor Keep Metal to restore the seed phrase, as well as a function to remotely erase the wallet in case of its loss.
We have dedicated an article to the Trezor wallets review.
CoolWallet
CoolWallet is another open source wallet that supports 200+ currencies. In addition to hardware wallets, a CoolWallet App is available that allows you to easily switch between cold and hot asset storage. The system offers a user-friendly interface for both experienced and novice users.
Several wallet models are available to crypto owners. These include the CoolWallet Pro, which is ultra-thin (the device is the size of a credit card) and tamper-resistant, and the fireproof and waterproof CoolKey, which is made of stainless steel.
SafePal
SafePal is one of the least expensive wallets on the market (up to $90 depending on the model). The device supports almost all existing coins and has integration with Binance. Both an app and a browser extension are available for asset management.
SafePal cold wallet has a screen and buttons for management, pin code, and passphrase. It is protected against physical tampering (self-destruct mechanism) and malware. Users can also purchase a SafePal Cypher to store the seed phrase safely.
We recommend reading our article «How Secure SafePal Is? A Full Wallet Review & Analysis».
KeepKey
KeepKey is a cold wallet with one of the largest displays on the market, making it easy to manage and access assets. Every transaction made through this wallet is manually confirmed by pressing a dedicated button, providing maximum protection against fraudsters.
The device supports 7000+ assets. Thanks to the built-in THORChain integration, currency can be exchanged directly from the wallet.
In addition to the wallet, KeepKey offers access to decentralized apps via the Dapp Store, as well as a RESTful API for app development.
ELLIPAL
ELLIPAL is among Forbes's top cold wallets, along with Ledger and SafePal. The system supports more than 10,000 tokens and offers improved security through physical isolation from the Internet and other insecure networks. In addition, the wallets are protected from physical hacking.
Users can choose between the Titan 2.0 and the compact Titan Mini wallet models. The ELLIPAL store offers a range of additional accessories, including adapters, cases, locks, generators, and seed phrase storage. Asset management is done through a mobile app.
Another popular cold cryptocurrency wallet is Tangem Wallet, you can read the overview of it in our article.
Cold Wallet — Maximum Security of Storage
Cold cryptocurrency wallets are the most secure way to store cryptocurrency. Such devices are disconnected from the network, which excludes remote access, protected from physical hacking and resistant to external unfavorable factors. For asset management, many manufacturers offer proprietary apps, as well as integration with software wallets.
Deciding which cold wallet is best to choose can be difficult: there are many options available on the market. We recommend focusing on supported currencies, convenience, price and security measures.
