To invest safely in cryptocurrency, you need to find reliable wallets. Out of the many cryptocurrency wallets you can use, including mobile, desktop, and software wallets, a hardware wallet is the safest option and one you need to consider the most. So, here is why you need the best hardware wallet, the best options to choose from, and how you use it.
What is a crypto hardware wallet?
A crypto hardware wallet is a small device that sometimes resembles a dongle or a thumb drive. It is your best wallet when you want to keep your cryptocurrency portfolio offline. The wallet supports different cryptocurrency portfolios, so you keep your investments in one place, which makes transactions and tracking easier.
But, how is a small device a wallet? Unlike how you use a pocket wallet with fiat money, a crypto wallet does not store crypto coins or assets. Instead, all cryptocurrencies are stored on the blockchain even when you own them.
But, all coins are assigned a different address for different owners, which is where a wallet comes in. The wallet stores the keys to this address, so you must have it whenever you want to access your portfolio.
The hardware wallet stores two types of keys offline. The first is a public key, the address on the blockchain. You need the public key for transactions into and out of your portfolio. This public key is what you share with other people or entities to receive crypto or pay with crypto.
The second key is called a private key. You can think of this as the password to your account (public key). You cannot share your private key with anyone, even when completing transactions.
As mentioned above, there are several types of crypto wallets, but the hardware wallet is the most secure. When thinking about security in the cryptocurrency industry, you ought to remember that the currency was formed to give people more freedom from banks and government regulators.
Unfortunately, the nature of the industry makes crypto a good target for online hackers who target companies and accounts. If a hacker gains access to your public and private keys, they can make fast transactions out of your account that can’t be reversed. Unfortunately, these hacks are quite common and often hurt crypto owners the most.
So, as you look to invest in cryptocurrency, it is best to store your blockchain keys offline, which is why hardware wallets are safer than other wallets. When your keys are not online, it is near impossible for a fraudster or hacker to access your portfolio unless they physically steal your device.
Best Hardware Wallets for Crypto
Are you looking to keep your crypto investment offline? A hardware wallet can help you hodl your coins for many years. This allows you to monitor the markets to pick the most profitable times to trade or transact. So, choose any of these wallets, and you are guaranteed top security.
1. Ledger Nano X
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The Ledger Nano X was released in 2019 and remains the best hardware wallet. It is designed for ease of use, security, and cold storage. Firstly, the Nano X is easy to set up after buying. When you buy it from the Ledger website, you will receive its package with a user manual, a USB cable for connecting to your computer, and recovery sheets for setting the best security passphrases.
Once you receive the wallet, you will also get a link to download the Ledger Live software. Before starting the setup process, power the wallet on by pressing and holding the two buttons on its body, then follow easy setup instructions. Part of the setup process constitutes setting the best security features, including a wallet PIN, a secondary passphrase that stores extra crypto assets, and a seed phrase for recovering your portfolio if you lose the device.
The Nano X also comes with loads of storage to protect your entire crypto portfolio in one place. The wallet supports over 100 applications, and these refer to different cryptocurrency apps like Bitcoin, Ethereum, Litecoin, and more apps. You can start downloading these apps as soon as you finish the setup process.
After securing your portfolio in this cold wallet, you can proceed to transfer crypto from other wallets or trade and transact through your crypto exchange and wallet. You will need to confirm each transaction physically on the wallet device. The Nano X is compatible with your smartphone via Bluetooth plus Windows, macOS, and Linux PCs.
Pros
- Advanced security features
- Easy to set up and use
- Supports over 1500 crypto assets
- Has Bluetooth connectivity
- Supports over 100 applications
Cons
- Quite expensive
- No touchscreen
Note: Make sure to check out our comparison between Ellipal Titan Vs Ledger Nano X.
2. Trezor Model T
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Trezor is another leading company you can buy your hardware wallet from. Their premium and most expensive wallet, the Trezor Model T, is one of the best options in the market, currently only competing with the Ledger Nano X in terms of features and usability.
When setting up the device, you will choose a wallet PIN and set a 12-word recovery seed phrase that helps you recover your portfolio if you lose the wallet. Like the Ledger Nano X, the Trezor Model T stores your keys and lets you authenticate every crypto transaction by pressing keys on the device itself.
While a bit more expensive than the Ledger Nano X, the Model T has one feature you do not get in the Nano X: a touchscreen user interface that displays the transactions you approve.
The Trezor Model T is a great cold storage wallet and supports over 1200 cryptocurrencies. In addition, the wallet is compatible with Windows, macOS, Linux PCs, and Android smartphones. Its package comes with the hardware wallet, a USB-C cable, and two recovery phrase cards.
Pros
- Excellent security features
- It supports over 1200 cryptocurrency coins
- Easy to set up
- It has a touchscreen for easier use
- Compatible with PCs and Android smartphones
- Allows easy fiat-to-crypto transactions from within the wallet
Cons
- It does not support iOS
- No wireless capability
- Expensive
3. Ledger Nano S Plus
Image source: shop.ledger.com
The Ledger Nano S plus replaced the original Nano S with much better features. Firstly, it comes with more memory that, like the Nano X, can support over 100 apps. The previous and original Nano S model only supported 6 apps, which was not enough to support a big crypto portfolio.
In addition to the 100 apps, this hardware wallet supports over 5500 cryptocurrency assets, including coins, NFTs, and tokens. Also, compared to the original Nano S, the Ledger Nano X has a significantly larger screen that makes navigation easy when confirming transactions.
When you purchase this hardware wallet from the Ledger website, you will also get a recovery phrase card, a USB-C chord, and a keychain strap for easy portability. Then, you can power the device on and start the setup process on the Ledger Live desktop software that lets you track your crypto portfolio even when your wallet is offline. When setting up, you will set your most secure ledger Live password, then a 4-8-digit wallet PIN, and finally, a 24-word passphrase you can use to recover your portfolio if you lose the device.
This wallet is compatible with Windows, macOS, and Linux PC operating systems. Unfortunately, you can only connect it to your smartphone through the USB-C chord, so it only works with select Android smartphones.
Compared to the two hardware wallets above, the Ledger Nano X is very affordable and easier to use for novice crypto investors.
Pros
- Relatively affordable
- Easy to set up
- Lots of storage to support more than 100 apps
- Compatible with PCs and Android smartphones
- Excellent security features
- Good customer support
- Compatible with web apps for your trading and staking needs
Cons
- No Bluetooth, hence only compatible with some Android phones
- No touchscreen interface
4. Trezor One
Image source: coindesk.com
The Trezor One is the budget hardware wallet from Trezor, coming at almost half the price of the more premium Trezor Model T. But, while it costs much less, the wallet still offers the best security and transaction features including support for over 1000 digital assets.
For example, as a fierce competitor of the Ledger Nano S Plus and Ledger Nano S, this wallet allows you to use fiat currencies to purchase crypto assets without going through exchanges like Gemini, Coinbase, Kraken, Crypto.com, and Binance. This feature gives the Trezor One an edge over the two Ledger hardware wallets that don’t offer it.
In terms of security, it is a cold storage hardware wallet with an isolated chip that stores your private keys, thus keeping them completely offline. When setting up the wallet, you will set a PIN that authenticates all crypto transactions from your accounts.
In addition to the PIN, you will also set a passphrase to create a separate crypto account. Finally, you also need to set up a 12 or 24-word seed phrase that can help you recover your account if you damaged or lost the device.
This hardware wallet is physically smaller than the Trezor Model T, which is good for portability, but at the expense of the bigger LCD touchscreen on the Trezor Model T. You can use the wallet with Windows, macOS, and Linux with the option also to get Firefox or Chrome extensions. The wallet is also compatible with Android smartphones.
Pros
- Relatively affordable
- Excellent security features
- Support for over 1000 digital assets
- Allows you to buy crypto with fiat currency without signing up on a crypto exchange
- Supports Windows, macOS, and Linux PCs, as well as Firefox and Chrome extensions
Cons
- Not compatible with iOS
5. KeepKey
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If you are looking for a reliable Ledger and Trezor alternative, KeepKey is the best hardware wallet to go for. This hardware wallet is owned by ShapeShift, which is a non-custodial exchange. Using the key is a great way to guarantee better portfolio security and control while keeping your keys safely offline.
KeepKey supports over 40 cryptocurrency coins in addition to other digital assets. It is easy to initiate on your PC and Android smartphone, a process that will have you set a wallet PIN and a 12-word seed phrase you can use to recover your keys in case you lose your wallet. When completing crypto transactions, you will need to manually authorize the transactions by entering the PIN on your wallet.
The wallet comes in a sleek design and an easy-to-use interface. You also do not need to sign in to your ShapeShift account since you can transact crypto through the wallet. Unfortunately, KeepKey does not have Bluetooth connectivity, so you cannot use it on your iPhone. But, it comes with a braided USB-A to USB-C cord for easy connectivity with compatible devices.
Pros
- Affordable
- ShapeShift integration for easier crypto transactions
- It comes in a sleek design
- Good security features
- Compatible with PCs and Android smartphones
Cons
- No Bluetooth connectivity
- It supports a smaller number of cryptocurrencies compared to Ledger and Trezor hardware wallets
Note: Make sure to check out our comparison of the Ellipal Titan vs Keepkey cold storage wallets.
6. Ellipal Titan
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Though this hardware wallet is still quite new in the industry, you can consider it if security is your topmost concern. The Ellipal Titan is an air-gapped hardware wallet with the potential to be the best in terms of security. The term air-gapped means this wallet does not connect to the internet or another device. So, it is completely isolated from the outside world.
The wallet is bigger than other options on this list and resembles a smartphone. Though bulky, this design offers a larger touchscreen from where to complete most crypto transactions.
As mentioned above, this wallet offers some of the best security features you need, including an anti-tamper design that has the wallet self-destruct if its sensor detects someone trying to open it physically. With self-destruction, all keys and data are deleted, and you can only recover them with a 12-word keyphrase on a new wallet.
The anti-assembly security feature protects your investment against malware attacks, especially those installed on a hardware wallet before it is delivered to you. The Ellipal Titan wallet has a metallic body with the screen tightly sealed onto the metal, so anyone attempting to open the wallet would leave identifiable marks on the body.
This wallet connects to the Ellipal mobile app through a QR code which cannot be hacked as it travels through light. The app itself is safe and acts as a secure proxy to access the blockchain so you can transact. Like other cold wallets, you must manually confirm each transaction on the wallet.
Though only compatible with smartphones and as expensive as the premium Ledger and Trezor wallets, this hardware wallet supports over 10 000 digital assets.
Pros
- It is an air-gabbed hardware wallet, thus isolated from the outside world
- Excellent security features, including anti-tamper and anti-assemble features
- The wallet does not connect to the internet, so your private key is never used online
- Compatible with all smartphones
- You transact through the Ellipal mobile app through QR codes
- Supports over 1000 cryptocurrency assets
Cons
- Expensive
- Bulky design
- No desktop support
Factors to Consider When Buying the Best Hardware Wallet
You can have different preferences when buying a wallet depending on your cryptocurrency trading experience, the size of your portfolio, and the different features you want. That said, here are the main factors to consider before you buy a hardware wallet.
a) Price
Different hardware wallets have different features and, thus, are priced differently. For example, the Trezor Model T and the Ledger Nano X are some of the most expensive wallets, but they also have the best transactional and security features for the most advanced traders.
b) Security
The main reason to get a hardware wallet is to keep your keys and, thus, your blockchain address offline. So, look for a wallet with the best security features in terms of PINs, passphrases, and seed phrases.
In addition to these, you can also go for extra features like QR-code compatibility, so you never have to key in your passwords. An even better choice could be getting an air-gapped hardware wallet that does not connect to the internet or any device. The Ellipal Titan is a good example that also self-destructs and deletes all information in case of physical damage.
c) Size
You may want to consider a small hardware wallet that is easily portable when you need to trade or transact on the move. However, while smaller may be better, it may limit the usability features that can help you complete transactions faster, such as a touchscreen or more buttons.
d) User interface
Different wallets have different features that make them easier to use. For example, when buying, look for a wallet with a larger screen that displays most transactional information, so it is easier to authorize. For a friendly user interface, you might consider the Trezor Model T wallet that comes with a large LCD touchscreen to show you more details about a transaction. A bigger display will make authorization easier compared to pressing buttons on other models.
e) Mobile Support
A hardware wallet with mobile compatibility will make transactions easier, especially when you are on the move. However, you might want to look for models that connect through a USB cord rather than wireless connections like Bluetooth.
Remember, there is always a chance that a wireless connection could be tapped into, thus compromising your hardware wallet’s security features.
How Do You Use the Best Hardware Wallets for Crypto?
As mentioned above, hardware wallets store your blockchain address keys offline, thus securing them from online hackers. However, you will still need to use your wallets to access your crypto on the blockchain in the following steps.
In the case of an air-gapped wallet like Ellipal Titan:
Step 1: Open the wallet by entering your PIN.
Step 2: Scan the QR code on your wallet using the Ellipal Mobile app on your smartphone. This scan lets you access your blockchain address, where you can make transactions on your mobile phone.
Step 3: To make a transaction, you will need to send a request from your cold wallet to the Ellipal app. Then, the app will generate a unique QR code for each transaction, and you can use the cold wallet to scan it. After scanning the code, the Ellipal Titan app will confirm your transaction by sending another QR code that you now need to scan through the mobile app. After that, you will authorize the transaction by entering your Ellipal Titan passwords.
For the other cold storage crypto wallets like Ledger, Trezor, and KeepKey follow these steps;
1: Plug the device into your PC or connect it to your smartphone and enter the PIN to unlock it.
2: Access your crypto portfolio through the PC or smartphone and create transactions.
3: Confirm or authorize each transaction by entering the wallet PIN again.
What Are the Benefits of Using the Best Hardware Wallet?
Here are the three main benefits of using a crypto hardware wallet.
- You keep your entire crypto portfolio offline while storing the access keys offline. As a result, hackers cannot reach your blockchain address without physically attaining the wallet.
- The hardware wallet also allows you to invest in different cryptocurrency assets to grow your portfolio.
- Finally, the hardware wallet prevents unauthorized transactions since you have to authorize transactions online and offline.
Featured image source: bitcoinmagazine.com