Hardware cryptocurrency wallets are the safest way to store cryptocurrency because they use multiple protection mechanisms, including encryption, two-factor authentication, and protection from physical attacks.
They differ from online wallets, where cryptocurrency is stored without an internet connection. Therefore, even if attackers gain access to a device, they will not steal funds from it. The crypto market offers many wallets, but some stand out for their reliability and ease of use. These are the wallets discussed in this article, both flagships of the market and lesser-known options.
Not your keys, not your crypto
"Not your keys - not your crypto" is a popular expression in the world of cryptocurrencies. This has a significant meaning. Without private keys, you cannot be considered the full owner of your coins.
Similar to the bank account number, cryptocurrencies are sent to a specific address to be received. The correct technical term for this address is the public key. Therefore, when someone sends you bitcoins, they send them to your public key. The latter is public because it can be shared without risking cryptoassets.
However, there is another key related to the public key. This is called the private key. This is important when dealing with cryptocurrencies. Anyone with access to the private key can manage crypto assets stored in the associated public key. In simple terms, the private key is similar to a password. This confirms that you are the true owner of the cryptocurrency address and its content. So when they say "Your keys are not your coins,” they mean private keys.
You may think that you own a cryptocurrency outright. This will appear to be the case until you try to withdraw cryptocurrency from the platform, especially if it is less than the minimum withdrawal threshold or greater than the maximum. In general, exchanges can account for a percentage of every cryptocurrency transaction. Why not, because you do not have a private cryptocurrency key in your account. The exchange owns it.
This feature is not limited to exchange. It also applies to any cryptocurrency wallet that does not allow access to the private keys of its coins. If you do not have private keys, you cannot be considered a full owner of the cryptoassets. You are entrusting them to a third party. Accordingly, a third party can do whatever they want with the crypto in your account.
What is a hardware wallet?
Currently, hardware wallets are recognized as the most reliable. These are typically USB devices. You do not need an internet connection to access them. To access the funds stored in a hardware wallet, it is necessary to connect it to a mobile device or computer and enter a private key. The biggest problem with hardware wallets is that access cannot be regained if the key is lost.
The wallet only needs to be connected to the internet when you want to make a transaction. Many trading platforms and other crypto services offer linking a hardware wallet to an online account.
This type of storage is attractive to users who focus on long-term investments in virtual assets. It may not be very convenient for everyday use, as you will not make transactions with your funds quickly; however, hardware wallets can significantly improve security.
Top 7 hardware wallets for hardware storage
There are a large number of hardware cryptocurrency wallets in the market. They vary in terms of the price, features, and design. Here are some of the best hardware wallets.
Ledger Nano X
Ledger's second-generation hardware crypto wallet supports over 1,800 coins and tokens. This matte plastic and stainless steel device is slightly larger than a standard flash drive (72 x 18.6 x 11.75 mm) and weighs around 34 g. It has its own 100 mAh battery and supports multiple interfaces simultaneously. The wallet can be connected to a computer via a standard USB cable, or to Android and iOS smartphones via Bluetooth.
To start using the Ledger Nano X, you must set up a PIN code and a 24-word passphrase, which will become your wallet's private key. As with other wallets, as long as you keep your private key safe, you will not lose your crypto assets, even if you lose your wallet.
Ledger Nano S
Our ranking of the best hardware cryptocurrency wallets continues with the Ledger Nano S. This is a simpler and much more affordable hardware crypto-wall model. It is also made of stainless steel and plastic and can be connected to a computer or laptop via USB, but it does not have Bluetooth support and, consequently, cannot be used with smartphones without OTG.
Trezor Safe 3
Trezor Safe 3 is considered the best hardware wallet, supporting over 8,000 crypto assets. It is widely regarded as one of the safest crypto wallets on the market.
Trezor Model T
Trezor Model T supports more than 1800 coins and tokens, allowing you to make transactions through Trezor Suite. It can be done either in the web application or locally using a computer. For obvious reasons, the latter method is considerably more secure.
Trezor Model T resembles an old-school stopwatch with dimensions of 64 x 39 x 10 mm. It is equipped with a screen, can connect to your computer via a USB cable, and offers a microSD card slot if encrypted storage is added directly to the hardware wallet. Trezor Model T can be purchased for 189 euros.
SafePal S1
The creators of SafePal S1 insisted on 100% online rejection. Therefore, the wallet does not support Bluetooth, WiFi, or NFC and does not connect to other devices via cable. It supports 54 blockchains and allows users to upload new tokens to wallets. The device looks and feels like a credit card. According to developers, this format makes it easier to work with the wallet. The device had a 1.3-inch display, buttons for entering commands, and a camera for scanning QR codes.
Cypherock
Cypherocks stand out with their unique backup and recovery method, eliminating the risk of a single point of failure. It uses a card-based system and Shamir’s secret-sharing technology for secure storage.
KeepKey
KeepKey is a hardware cryptocurrency wallet with the largest OLED display (3.12") in the market. It is compatible with Windows, MacOS, Linux, and Android. For cryptocurrency transactions, developers offered wallet owners the tools of the popular ShapeShift platform.
Conclusion
Hardware wallets are the most reliable way to save cryptocurrencies. However, with all of its security, this method is not convenient. Therefore, many advanced users prefer, so to speak, a hybrid way of storing coins, using a hardware wallet for basic savings, and a hot wallet for momentary spending. We find them to be the best way to secure savings.
The best hardware wallets for cryptocurrency can be found above. For those who do not want to spend money on buying a full-fledged hardware wallet, we advise you to remember to use old methods of storing important information (in our case, private keys) on paper. A more modern way of storing them can be a computer or smartphone without Internet access.
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