The ever-growing demand for cryptocurrency has seen investors seeking more secure options of storing their hard-earned coins.
Hardware wallets have many benefits attached to them such as offering improved security and also having the capability of being used for everyday transactions. Suppose you lose your wallet by means of a scam, or if your computer is hacked, you only need to get a new wallet and your coins will be restored from your seed phrase.
These wallets offer complete protection to the Hodler against spyware of any sort. It operates on the premise called cold storage. This means that your privet keys are kept offline.
They are a much safer option compared to hot wallets such as web wallets and software wallets that are operated online.
Expect to pay higher fees on all of these hardware wallets due to the advanced security features. It seems like a small price to pay to keep your Bitcoin safe.
The Definition of a Bitcoin Hardware Wallet
These wallets were developed to store your secret keys in an offline scene. This device generates your private keys that are needed to manage your hardware wallet. You can also import your previously created seed phrase as well.
It works on the premise of you having to write down and keep your seed phrase safe in a few places where they can’t be easily accessed.
The Best Bitcoin Hardware Wallets
Ledger Nano S
Best Budget-Friendly Option
Ledger Nano S is a very popular hardware wallet amongst cryptocurrency investors. It was designed and manufactured in France and has a crisp European feel to it.
One of the key features of this device is that it operates without a battery, and connects to any PC, laptop, or mobile device. This allows you to trade anywhere, any time.
Using this wallet feels similar to that of operating a flash drive, and it is operated by navigating two buttons located on the device.
This is the most cost-effective hardware wallet on the market and supports 1500 different cryptocurrencies, and the list keeps on expanding.
Similar to other types of cold wallets, the Ledger Nano S keeps your privet keys securely offline. It provides complete peace of mind that you are protected against any form of cyber attacks.
Ledger Nano X
Most Popular Option
Ledger Nano X is one of the latest editions to the product range of the manufacturer. It comprises the latest technology in security. This has all been made possible with their unique two-chip system.
It is the ultimate marriage between mobility and security. This mobile device can be used anywhere in the world and does not require a wire to be connected.
One key feature of this device is its ability to load multiple hardware wallets simultaneously.
Trezor
Cited as the Most Secure Option
Trezor wallet has been cited as the very first secure Bitcoin hardware wallet ever developed. It resembles the average pocket calculator in terms of look and feel.
It is currently compatible with eight different cryptocurrencies. This hardware wallet can be used in conjunction with several other applications that can be downloaded onto Android smart devices.
This cold crypto wallet supports operating systems such as Mac, Linux, and Windows together with one of the most highly rated wallet apps available on the Android store.
KeepKey
Best Basic Option for First Time Traders
Keepkey is a bulky-sized wallet to carry around on your person. It is more than double in size compared to some of its counterparts.
It has the same capabilities and features that any hardware wallet has plus currently supports six different cryptocurrencies.
When this hardware wallet is unboxed you will find a USB cable, a recovery card, and an instruction manual.
Before deciding to purchase this hardware wallet, it is recommended to do your due diligence by researching reviews and other related articles.
A unique product feature of this wallet is that it swaps out pin codes regularly in protection thereof. This provides ample security against cyber attacks and malware copying.
This is also one of the most affordable cold storage wallets on the market currently and comes highly recommended by all its reviewers online.
Mobile wallets
These wallets are considered to be the least secure but well suited for small everyday transactions.
Samourai is the best mobile wallet I have seen in privacy and support.
Desktop wallets
You can download and install a desctop wallet on your computer.
As long as your computer is free of malware or any security weaknesses, your Bitcoins are safe.
Electrum wallet
The benefits of Electrum wallet include its speed, its security and its stability.
It is also compatible with both Ledger and Trezor hardware wallets as an additional security measure.
Wasabi wallet
Wasabi is an open source wallet with advanced privacy features.
Paper wallets
Paper wallets are just pieces of paper with a private key printed on them.
In this case, someone who can physically access that paper can steal your bitcoins.
But you can pass this wallet to anyone without using an Internet (as a tip in a restaurant for example)
This is a free open source Javascript based website where you can generate a private and public key for storing your bitcoin and then print out the wallet using your own printer.
The resulting certificate will have your keys and a QR code which you can store for safe keeping.
Web wallets
These type of wallets are the least secure option because your the private keys are stored by the third party and not by you.
So we don’t recommend storing your Bitcoin in any web wallet or exchange for a long time.
Remember! Not Your Keys, Not Your Bitcoin!
The most popular web wallet is blockchain.com (previously blockchain.info)
Conclusion
With so many different Bitcoin hardware and cold storage wallets on offer, this article should serve as a basic foundation for further investigation.
It is a crucial decision and definitely one that should not be taken lightly when it comes to your Bitcoin investments.