As a seasoned crypto investor with years of experience under my belt, I can confidently say that a hardware wallet is an essential tool for securing your digital assets. Having learned the hard way about the risks associated with hot wallets and exchanges, I have come to appreciate the peace of mind that a hardware wallet provides.
The age-old saying holds true: “If you don’t control the keys to your digital assets, you don’t truly own them.” Sadly, many individuals have learned this lesson the hard way by relying on others to hold their private keys and storing their cryptocurrencies in custodial wallets or exchanges.
In the year 2013, two individuals with a passion for cryptocurrencies set out to design a compact, portable device capable of safeguarding their Bitcoin private keys. These forward-thinking crypto enthusiasts were Pavol Rusnák and SatoshiLabs’ co-founder, Tomas Slanicky, better known by the pseudonym Market Slush. They went on to establish Trezor and introduced its pioneering product, the Trezor One – the world’s first Bitcoin hardware wallet.
By the year 2024, significant progress has been made in creating advanced hardware wallets. Leading manufacturers have refined the craft of cold storage solutions through continuous innovation.
A limited number of hardware wallets meet our criteria, leading us to create an extensive review covering the top-tier cold storage options available today. We’ve taken into account essential aspects such as security, user-friendliness, functionality, affordability, and more.
Without any more delay, let’s dive right in and explore all there is to know about hardware wallets and which top-notch options are worth considering.
Quick Navigation
- What is a Hardware Wallet?
- Best Hardware Wallets – Top 5 Cold Storage Options
- Trezor Safe 3
- Cypherock X1
- BC Vault
- Ledger Nano S Plus
- Tangem Wallet
- Choosing a Hardware Wallet – Factors to Consider
- Tips for Using Hardware Wallets Safely
- Frequently Asked Questions
- Best Hardware Wallets – Final Thoughts
What is a Hardware Wallet?
A hardware wallet, referred to as cold storage as well, serves as a tangible gadget that safeguards the exclusive codes required to handle and transact cryptocurrencies. Its appearance varies: it might resemble a USB stick, though not all manufacturers adopt this design.
Hardware wallets offer a significant advantage over software wallets when it comes to security. Since they aren’t connected to the internet, private keys are kept offline, reducing the risk of malicious attacks like hacking and exploits. However, it’s important to note that no system is completely foolproof, and hardware wallets do have their drawbacks which we can discuss later. For now, let’s focus on their key benefits: offline storage, enhanced security, and reduced susceptibility to cyber threats.
Security
For individuals seeking to safeguard their digital assets, hardware wallets provide a practical solution by allowing users to keep their private keys away from the internet, thereby minimizing hacking risks and boosting both privacy and security.
Ownership
As a researcher exploring the topic of digital wallets, I can tell you that when you use a hardware wallet to store your cryptocurrency keys, those keys are generated right within the wallet itself and kept secure there. No third party or external application has control over these keys. In fact, some advanced hardware wallets include tamper-resistant chips for an extra layer of protection against unauthorized access.
Support for multiple cryptocurrencies
Hardware wallets can support hundreds or thousands of cryptocurrency coins and tokens.
One significant advantage of contemporary hardware wallets lies in their transaction signing process. Despite being offline, users can still authenticate transactions through the manufacturer’s website application or by utilizing a connected card for crypto spending.
Due to specific cards being equipped with NFC technology, these cards can transmit data for transactions through nearby readers or “vaults.” Since these offline processes occur without an internet connection, your private keys remain secure and undisclosed during the exchange.
To summarize, a hardware wallet is a compact, pocket-sized device functioning as a computer, ensuring secure storage and management of your cryptocurrencies through essential features.
Hardware wallets offer greater security than hot wallets, but they’re not without their flaws. While they provide enhanced protection for your cryptocurrencies, they come with limitations such as reduced flexibility, fewer features, and higher costs compared to hot wallets. In the following section, we will delve deeper into the advantages and disadvantages of hardware wallets to help you make an informed decision before purchasing one.
Let’s look at the best hardware wallets to pick in 2024 without further ado.
Best Hardware Wallets – Top 5 Cold Storage Options
Here are some wallets that stood out for their groundbreaking features, versatility, and compatibility with various cryptocurrencies.
Trezor Safe 3
The Trezor Model T is one of the most distinguished items in the Trezor lineup. Its security is reinforced by the use of a Secure Element, which is a certified EAL6+ chip.
The Trezor Model 3 puts a strong emphasis on privacy and offers integration with the Tor anonymous browser, in addition to employing Coinjoin for confidential Bitcoin transactions. It is also compatible with Shamir backup, a security protocol enabling you to establish multiple recovery methods for your private keys. Notably, this standard is frequently adopted by Trezor for its hardware solutions, including the Trezor Model T.
Related: CryptoPotato’s podcast with the CEO of Trezor – Matej Zak.
As a seasoned user of cryptocurrency hardware wallets, I can confidently say that the latest model from Trezor is not just about ensuring privacy and security, but it offers so much more. With support for over 8,000 coins and tokens, this wallet significantly broadens Trezor’s cryptocurrency offerings, leaving almost every other hardware wallet in the dust.
The Safe3 is another top-notch option for securing your Bitcoins with hardware wallets. Notably, Trezor produces a distinctive Bitcoin-exclusive edition, which is readily identified by its black and orange color scheme.
Key features of Trezor Safe 3
- Supports over 8,000 cryptocurrency assets
- EAL6+ chip for more advanced security
- Supports Tor and Coinjoin
- Shamir backup compatible
- Compatible with: operating systems such as Linux, Microsoft, and Mac and for mobile devices on iOS and Android through the Trezor Suite Lite app
Supported Cryptocurrencies
Previously brought up is the capability of Trezor Model T to manage over 8,000 distinct digital currencies and tokens. Among these are Bitcoin, Solana, Ethereum, Cardano, Ripple, and Binance Coin – which are the leading cryptocurrencies based on market capitalization. Additionally, ERC-20 and SLP tokens are also compatible. It’s important to mention, however, that Cosmos and Avalanche are not currently supported by this device, with no clear explanation as to why yet.
Another option is to state: you have the ability to link your Safe 3 with external software wallets such as Exodus, MetaMask, and top-tier Cardano wallets like Yoroi.
Pros and Cons of Trezor Safe 3
Pros explained
- It is more flexible than other Trezor models
- Cheaper starting price
- Integrates Shamir backup security
- Integrates a dedicated security chip —EAL6+
Cons explained
- No touchscreen
- Lacks support for popular networks like Cosmos and Avalanche
Cypherock X1
As a researcher studying the latest advancements in cryptocurrency storage solutions, I’ve come across an intriguing hardware wallet named Cypherock. This wallet sets itself apart from its competitors through its unique focus on security, design, and functionality. The star product of this company is the Cypherock X1, which consists of two distinct components:
- X1 vault: the main device for storing crypto assets and signing transactions. It has an OLED display and a joystick for navigation.
- X1 cards: four cards with Near Field Communication (NFC) antennas, allowing users to sign transactions using the X1 vault. These cards are tamper-proof and leverage bank-grade encryption —meaning they use encryptions similar to banks, such as the Advanced Encryption Standard (AES).
The Cypherock X1, a recently introduced device in the market, having been launched in late 2022, has garnered positive feedback from its users. They’ve commended its advanced security features and user-friendly design that effectively tackles weaknesses often found in conventional seed phrase backup methods.
Cypherock breaks down your private key into four segments, with each X1 Card safeguarding a distinct segment. This setup prevents vulnerability from a single source – for example, if someone manages to snatch your wallet or obtains one portion of your private keys.
Key features of Cypherock X1
- Similar to Trezor Safe 3, the X1 allows users to leverage Shamir backups to recover their private keys.
- It’s EAL6+ certified and comes with bank-grade hardware components
- Supports over 3,000 cryptocurrency coins and tokens
- Compatible with multiple blockchain networks
- Comes with a vault and four cards with NFC antennas
- Can be connected with dozens of software wallets through Wallet Connect
Supported cryptocurrencies
As a passionate crypto investor, I’m always on the lookout for versatile wallets that can accommodate a wide range of digital assets. One such wallet that catches my attention is Cypherock X1. This wallet boasts an impressive capability to store and manage over 3,000 different cryptocurrencies! That’s right, you read it correctly – more than three thousand! Among these are well-known names like Bitcoin, Ethereum, and up-and-coming contenders such as Solana. Moreover, it supports essential token standards such as ERC-20, SLP, and BEP-20, ensuring a comprehensive investment portfolio under my control.
Additionally, the wallet supports Avalanche, Cosmos, Polygon, and all EVM-compatible blockchains.
Pros and Cons of Cypherock X1
Pros explained
- Recovery phrases can be extracted
- High-end security with EAL6+ and bank-grade encryption
- Flexible, dynamic, and Intuitive design
- Shamir backup compatible
Cons explained
- Its price is more expensive than other wallets in the market
- Plastic build
BC Vault
Among the hardware wallets featured in this piece, each has engineered advanced and resilient security features and elements to guarantee dependability and top-tier protection for their clients. Amongst these, BC Vault is particularly noteworthy and inspires the greatest degree of trust.
BC Vault functions as a hardware wallet, accommodating support for an extensive array of cryptocurrencies totaling millions and all existing blockchain networks. This includes testnets, layer-2 solutions, NFTs, memecoins, and more. The company behind this innovative product is REAL Security, a reputable Slovenian cybersecurity firm established in 2002, recognized for its expertise and leadership in IT security.
The REAL Security team’s website reveals that nearly all its members hold technical degrees in disciplines like computer engineering, security, electrical engineering, and mathematics. Consequently, their acclaim and growth extend beyond the realm of cryptocurrencies and blockchain technology.
In terms of security, BC Vault employs a different approach compared to conventional wallets. Instead of mnemonic seed phrases, it provides backup options using an SD card or QR code. Additionally, the wallet generates unique private keys for each account created by integrating a random number generator with non-deterministic algorithms. This feature eradicates another potential vulnerability and ensures that every wallet is distinct and not mathematically connected.
One advantage of BC Vault is that it enables users to establish a Global PIN and password for enhanced security. The gadget remains unresponsive to command inputs without these credentials being entered. It’s important to note that you have the flexibility to employ any preferred combination of passwords and PINs, but ensure that at least one method is utilized to securely encrypt all your data.
- Global Password: Used along with the Global PIN to unlock access to BC Vault. Entered in the application.
- Global PIN: Used along with the Global Password to unlock access to BC Vault. Entered on the device.
- Wallet Password: Used along with the Wallet PIN to send currencies from individual wallets. Entered in the application.
- Wallet PIN: Used along with the Wallet Password to send currencies from individual wallets. Entered on the device.
If you’ve invested over 130 Euros in your device, you have the added benefit of personalizing its appearance.
Key features of BC Vault
- Thanks to FeRAM storage, your data can be stored for up to 200 years.
- True Random Number Generator: BC Vault generates private keys using a true random number generator, which increases their security and unpredictability.
- In-Wallet Swap Feature: You can swap assets within the wallet thanks to BC Vault’s integration with Changelly.
- WalletConnect Integration: The wallet supports WalletConnect, allowing you to interact with multiple dApps and DeFi platforms.
- Compatibility: BC Vault is compatible with Windows, macOS, and Linux desktop applications and supports browsers like Firefox, Chrome, Opera, Safari, and Internet Explorer.
- Large OLED Display: BC Vault features a 2.42-inch OLED display, making it easier to navigate and use than other hardware wallets.
- Multi-Language Support: BC Vault supports multiple languages, including German, Chinese, Slovenian, and English.
Supported cryptocurrencies
BC Vault asserts the ability to accommodate a wide range of cryptocurrencies and tokens, including NFTs, across various blockchain platforms like Ethereum, Polygon, BNB Chain, Cosmos, Avalanche, and others. Additionally, it provides access to numerous token standard versions such as TRC-10, TRC-20, ERC-20, ERC-721, SLP, BEP-20, and so forth.
You can check out BC Vault’s Supported Cryptocurrencies page for more information.
Pros and Cons of BC Vault
Pros explained
- Supports virtually all cryptocurrencies and blockchain networks, including NFTs and Layer-2s
- High-end security coupled with multiple safety combinations
- Customizable design
- Long-term storage, up to 200 years
- Multi-language support
- In-wallet exchange
- Provides access to DeFi applications
Cons explained:
- Not open-source
- More expensive than other wallets in the market
Ledger Nano S Plus
The Ledger Nano S Plus is a specialized device engineered for safeguarding cryptocurrencies and non-fungible tokens (NFTs). Boasting ample capacity to accommodate over 5,500 different digital assets, it also ranks among the top DeFi wallets in the market.
From a security perspective, the Nano S Plus is a hardware wallet certified to CC EAL5+ standards. It comes with a built-in exchange feature for managing your funds on the go. The presence of a touchscreen makes it more interactive and easier to handle compared to the Nano X model.
While the Nano S Plus is quite similar to Ledger’s Nano X, there are certain differences to consider. The Nano S Plus supports over 5,500 cryptocurrencies, costs $79, and is compatible with Android, while the Nano X is compatible with both Android and iOS.
Key features of Ledger Nano S Plus
- The Nano S Plus is compatible with over 50 wallets for accessing DApps, different cryptocurrency assets (including NFTs), and even Web3 applications.
- Supports up to 100 apps installed on the device and over 5,500 compatible crypto assets.
- It features Secure Element, a CC EAL5+ certified chip. It’s also independently certified by ANSSI, which refers to the National Agency for the Security of Information Systems in France, which highlights a product’s robustness.
- Unlike the Ledger Nano X, the Nano S Plus does not have Bluetooth or a battery. It measures 62.39mm x 17.40mm x 8.24mm, has a screen resolution of 128×64 pixels, a USB-C connector, and weighs 21 grams.
Supported Cryptocurrencies
The Ledger Nano S Plus wallet is capable of handling over 5,500 distinct cryptocurrencies, tokens, and even Non-Fungible Tokens (NFTs). Among these, it manages and safeguards well-known assets such as Bitcoin, Ethereum, Cardano, Solana, Avalanche, Stellar, and numerous others. Furthermore, it caters to various token standard types, including:
- ERC-20
- ERC-721
- TRC-20
- TRC-10
- BEP-2
- SLP
As a researcher, I would recommend exploring Ledger’s database to determine if any of the listed assets support staking, swapping, or integration with other wallets. Additionally, for a comprehensive understanding of the Ledger Nano S device, I suggest reading our in-depth review.
Pros and Cons of Ledger Nano S Plus
Pros explained
- Secure, CC EAL6+ certified hardware wallet
- Supports over 5,500 digital assets
- Smaller and cheaper than Nano X and other Ledger wallets.
Cons explained
- No Bluetooth connection
- Seed phrase recovery feature requires KYC (Know your Customer) checks
- Does not support iOS devices
Tangem Wallet
Tangem Wallet is highly regarded for its top-tier security features and user-friendly design among cold storage wallets. With support for over 6,000 different digital assets spanning across more than 30 various blockchain networks, it offers extensive coverage in the cryptocurrency realm.
Tangem’s innovation deviates from a standard USB drive. Instead, it presents as a credit card-sized gadget. This device segregates private keys across multiple cards, thus eradicating the sole vulnerability of failure. Unlike Cypherock’s X1, there is no need for an additional vault. In simpler terms, each card acts as the cold storage. The device lacks a screen or buttons since all functionalities are managed through the Tangem mobile application. Users can execute transactions and oversee their wallet using this app.
It’s also very cheap, with the three-card set costing $69.
Tangem Wallet boasts top-notch security, guaranteed for 25 years, and holds an EAL6+ certification. This certification signifies that the wallet undergoes rigorous engineering and development processes to implement robust security measures. Additionally, it has been scrutinized by renowned auditing firms Riscure and Kudelski Security for added assurance.
With Tangem wallets, the private keys are produced by the wallet itself and securely stored within the card. This additional security measure helps prevent unauthorized access. Like Cypherock, users can recover their information as long as they have one of the cards, the app, and their personal identification number or passcode.
Key features of Tangem Wallet
- High-end security: Tangem Wallet features an EAL6+ certified chip and secure element, offering a high level of security comparable to a biometric passport.
- User-friendly: The Tangem app has an intuitive interface, providing a seamless and user-friendly experience.
- Battery-free: Similar to Cypherock, Tangem’s cards use NFC technology, requiring no batteries or charging to make continuous and convenient use.
Supported cryptocurrencies
As a cryptocurrency analyst, I can share that the Tangem Wallet holds support for more than 6,000 distinct digital coins and tokens. Among these are popular names such as Bitcoin, Ethereum, Litecoin, Cardano, and Dogecoin. Additionally, it caters to an extensive range of blockchains, encompassing Avalanche, Cosmos, Ethereum, BNB Chain, plus all Ethereum Virtual Machine (EVM) compatible networks and layer-2 solutions like Arbitrum and Optimism.
Pros and Cons of Tangem Wallet
Pros explained
- Affordable and comes with a 25-year warranty
- Simple design and easy set-up
- NFC-enabled cards
- EAL6+ certified and has been independently audited by several blockchain firms
- Beginner-friendly
Cons explained
- Lack of advanced features, such as multi-sig capabilities, dApp, and exchange integrations
- No desktop support
Choosing a Hardware Wallet – Factors to Consider
When selecting a hardware wallet for securely storing your cryptocurrencies, keep in mind the following essential factors:
Security Features
To find a reliable and secure wallet, search for models that incorporate secure element chips and have obtained EAL certification, preferably with a rating of EAL6+. Additionally, look for wallets featuring advanced encryption technology.
Multi-Factor Authentication (MFA)
Most wallets offer various security options, including setting up a PIN number or using biometric authentication, among others. It’s important that you utilize at least one of these features to protect your wallet and the information it holds.
Open-Source Software
Open-source software gives the public the ability to examine its code for potential weaknesses. However, this isn’t a requirement for hardware wallets. Although the firmware in these devices may not be publicly accessible, some components or related applications might still be open-source. Notable examples like Ledger and BC Vault are secure and excellent choices for cold storage wallets despite being non-open-source.
Backup and Recovery
As a meticulous researcher, I would inspect whether the wallet offers dependable methods for data restoration. Specifically, I would examine if it supports features like a seed phrase or encrypted backup options.
Track Record
Checking out genuine user feedback from unbiased sources can provide valuable insights into a wallet’s trustworthiness and security.
Usability, Design, & Price
For beginners, I would recommend choosing a wallet with a straightforward setup procedure and an interface that is simple and easy to understand.
Display and Controls
A clearly displayed interface and user-friendly controls, such as buttons or touchscreens, make it simple to check and approve transactions and features in your digital wallet.
Compatibility
To ensure compatibility with your preferred device or operating system, confirm that the chosen digital wallet supports Windows, macOS, Linux, Android, iOS, or any additional platforms you intend to utilize.
Battery and Connectivity
Examine if your wallet is equipped with a battery and which types of connections it offers (USB, Bluetooth, NFC). Understanding these specifications is essential as they influence the ease and functionality of the gadget.
Price
Examine your financial plan before making a hardware wallet purchase. Prices for these devices range from around $50 to over $400 based on factors such as brand, model, and features.
Supported Cryptocurrencies & Integrations
Range of Supported Coins
As a responsible crypto investor, I always ensure that the wallet I choose to use can actually handle the specific digital currencies I intend to keep and transact with. It’s important to note that some wallets may make grand claims about supporting thousands of coins, but it’s crucial to approach such statements with healthy skepticism. Instead, take the time to double-check the wallet’s compatibility with your chosen cryptocurrencies before setting up an account or transferring any assets.
Range of Supported Blockchains
If you’ve discovered a wallet containing the necessary coins for you, but these coins are only compatible with certain blockchains that you don’t plan on using for transactions, ensure the wallet you select can function with those specific networks.
Integrations
For experienced cryptocurrency users, consider adopting wallets offering integrated exchange functionalities and decentralized finance (DeFi) apps. These tools enable you to deploy your digital assets productively and securely earn returns.
Tips for Using Hardware Wallets Safely
After deciding on the right hardware wallet for your needs, here are some guidelines for secure usage:
- Remember that hardware wallets might come in a credit card-size device or a USB port. Either way, they’re small and thin and prone to getting lost if you leave them lying around. Make sure you store them in a secure, room-temperature environment.
- Never share your seed phrases or passwords with anyone. A manufacturer will never contact you and ask you for your credentials and recovery phrases.
- Make sure you set up a PIN, a password, or a combination of booths (if permitted).
- Backups are a must. Make sure you back up your recovery seed phrase using the manufacturer’s instructions. If possible, make multiple backups and store them in different secure locations. It’s good to test your recovery phrases with a spare wallet periodically.
Related: 9 Tips For Securing Your Bitcoin and Crypto Wallets You Must Follow
Frequently Asked Questions
Are hardware (cold) crypto wallets 100% safe?
While it’s impossible to guarantee complete safety when dealing with cryptocurrencies, it’s essential to acknowledge that the same risk applies to keeping traditional money in a bank (banks can face insolvency). Nevertheless, among various storage options for cryptocurrencies, hardware wallets offer the highest level of security.
Can a hardware wallet get hacked?
While it’s true that if you keep your device disconnected from the internet, it won’t be vulnerable to online hacks, it’s essential to note that connecting it to the web poses a risk. Specifically, visiting phishing sites or providing sensitive information could lead to compromise.
Can a hard wallet fail?
Hardware wallets are renowned for their robustness and infrequent malfunctions. Nevertheless, being electronic devices, they carry a small risk of failure. In such situations, the backup of your seed phrase assumes paramount importance as it serves as the means to restore your assets.
What happens if a hardware wallet dies?
Should a hardware wallet malfunction or cease to function, you can recover your cryptocurrency by employing the backup of your seed phrase. It is imperative that you maintain this backup in a protected and discreet place at all times.
Best Hardware Wallets – Final thoughts
As a crypto investor, I’ve completed my comprehensive exploration of the top-tier hardware wallets for 2024. In this journey, I delved into both emerging players and seasoned contenders such as Ledger and Trezor.
Each of these wallets provides distinct approaches and advancements for managing cryptocurrencies offline, accompanied by their respective advantages and disadvantages. However, it’s crucial to keep in mind that the ideal cold storage wallet for you depends on your specific requirements and financial situation.
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2024-07-23 17:47