Storing private keys safely is crucial to protect your cryptocurrency against hacking and theft of digital assets. Crypto wallets do exactly that. They allow you to manage your private keys and sign transactions for you on your behalf. A single wallet can manage and store multiple different cryptocurrencies. A wallet gives you a series of words, usually 18 to 24 different words, known as recovery or seed phrase. You can use this seed phrase to recreate your wallet in case you lose access to your wallet in one way or another.
There are many crypto wallets available these days, but they fall under one of two categories; hot or cold wallet. A hot wallet is a mobile, web, or desktop app connected to the internet. A cold wallet, or hardware wallet, is a physical device, resembling a USB stick, that stores your private keys offline. The ‘storing keys offline’ is the important part. As happens with many hot wallets, they are prone to hacking and other theft because they are connected to the internet. If the device you are running your wallet on is somehow infected with malware, hackers can control and see the content of your screen. This can compromise your seed phrase or private keys. And once someone gets hold of them, they can transfer your crypto anywhere they like.
Crypto hardware wallets are, therefore, the safest way to manage and store your cryptocurrencies. In this blog, we will look at some of the best and most popular hardware wallets and discuss their features, pros, and cons.
Ledger, founded in 2014, is a leading company when it comes to hardware wallets. Their Ledger Nano S is the best-selling hardware wallet, trusted by millions. Here we compare the Nano S and the upgraded model Nano X.
Ledger Nano S
The Ledger Nano S is a small and compact device. You can comfortably hold it in your hand or carry it in your pocket.
Selling Features:
- It has a metal casing, protecting the screen from damage.
- Over 5500 compatible crypto assets
- Compatible with 50+ wallets
- PIN code for added security
- 24-word recovery phrase for backup
- Micro-USB connector
- Price: $70 (as of writing)
The way the Ledger Nano S works is pretty similar to any hardware wallet. When you first plug it into your computer, you need to choose a PIN to protect the device. There are two buttons and a display screen that allow you to interact with the device. You will then receive a 24-word seed phrase. This seed should be written down in the paper that comes with the product and NOT on your computer. The initial setup doesn’t take long; most of the time is spent on writing the seed and confirming it. Once the device is set up, you need to install Ledger Live. it is a desktop app that allows you to make transactions. The overall interface of the app is intuitive and simple.
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Cons:
Instead of cons, these are features that are missing in this model and added in the Nano X.
- No Bluetooth
- No battery life
Overall, the Nano S is a great model for new and veteran crypto investors; the best for this price range. And it is very safe.
Ledger Nano X
The Nano X is the upgrade to the Nano S. The Nano X has the ability to manage 100 crypto assets simultaneously. The biggest upgrade for the Nano X is Bluetooth capability a built-in battery for wireless functionality. This allows you to use your phone instead of your computer to make a transaction.
Selling Features:
- It has a metal casing, protecting the screen from damage.
- Over 5500 compatible crypto assets
- Compatible with 50+ wallets
- PIN code for added security
- 24-word recovery phrase for backup
- USB-C connector
- Bluetooth compatible with Ledger Live Mobile
- 8 hours of battery life on standby mode
- Price: $175 (as of writing)
Ledger Nano X works in the same way as the Nano S model, but the Bluetooth connectivity and increased capacity for coins make it a powerhouse model in a hardware wallet.
The only con in this hardware wallet is the user interface, which isn’t as intuitive as one would hope. Plus, the price is striking too, so this wallet is good for long-time investors.
Trezor is a market veteran for hardware wallets. In fact, Trezor was the first company to come up with the idea of a hardware wallet, so they have a great company reputation. Also, one of the company’s founders, Marek “Slush” Palatinus created the first mining pool for Bitcoin. Trezor’s technology is open-source which makes the wallets more secure than other brands. Despite being caught up in security breaches in the past where people have lost cryptocurrency, the brand has jumped back to being one of the best and most secure wallet makers out there.
However, one downside to Trezor wallets is that, when you upgrade the firmware, it frequently resets the whole wallet. To beginners, this can freak them out. But you can restore the wallet easily if you have your seed phrase safe. This is just a quirk to be aware of in the wallets.
Trezor One:
The Trezor One model is the oldest hardware wallet on the wallet, therefore, one of the most reputable. The affordable price, great UI, and simple design makes it a good choice for new and long-time investors. It supports a large number of cryptocurrencies; except for XRP. But the company took notes from the public feedback and the XRP coin is now supported on the new Trezor T model.Features:
- Supports over 1000 cryptocurrencies except XRP
- Monochrome screen and 2 buttons for interaction with the device
- Android, Windows, OSX, and Linux support
- You can create addresses as per your need to avoid reusing an address.
- Supports two-factor authentication
- Easy to set up and use
- $68 (as of writing)
Cons:
- No Bluetooth connectivity
Trezor Model T:
The Trezor Model T is basically Trezor One with a full-colour touchscreen display. This makes a difference in ease of use and security. Because, when you restore a wallet, you are asked to enter your seed phrase. Without a touch screen interface, you will need to type in your seed phrase on your computer. If your computer is infected with malware this makes your seed phrase vulnerable to hacking and exposure. This makes the model of the most secure hardware wallets out there.
Features:
- Supports a lot over 1000 cryptocurrencies and XRP too
- Full-colour touchscreen
- SD card for future data and file encryption
- Works with Windows, macOS, Linux, Android
- Supports two-factor authentication
- Supports QR code; you can give your code to senders to send you crypto
- Sending funds to multiple recipients in one transaction
Cons:
- No Bluetooth connectivity
- No iOS support
The downside is, of course, the price, it costs around $150 and there is also no Bluetooth support.
KeepKey is a hardware wallet from the Swiss crypto exchange ShapeShift. It stands out among other hardware wallets because of its beautiful and sophisticated design.
Features:
- OLED display and a button
- micro-USB port
- Large display which is ideal for viewing long addresses
- Open-source
- QR code supported
- Native support for 8 cryptocurrencies and over ERC-20 tokens
- adapts “the 25th seed phrase” security measure
- $49 (as of writing)
Cons:
- Limited cryptocurrency support
- No multi-signature capabilities
- No Bluetooth support
Setting up your KeepKey:
When first setting up the Keepkey, you will need to create a PIN code to secure the device. Instead of using the device button for entering the PIN, it shuffles the digits in the grid which then you have to match on the computer by selecting corresponding locations using the cursor. You are then given the 24-word seed phrase. You need to write it down or store it safely otherwise.
The KeepKey supports an additional security measure, where the user adds an additional word to their 24 series of words. This effectively puts a passphrase to the recovery phrase.
It is one of the cheapest hardware wallets on the market and one of the safest. It is easy to use and set up too.