Regardless of the now well-known Bitcoin volatility, the realm of cryptocurrency continues to expand. Ever since Bitcoin emerged in 2009, users have been trying to determine the best way to store their hard-earned Bitcoins safely.
Today, there are plenty of options on the market, whether we’re talking about a free Bitcoin wallet online or a hardware wallet. In this article, we want to focus on hardware wallets specifically.
What are they exactly, and how do they work? We’ll also list the top hardware wallets for cryptocurrency now available.
Cryptocurrency Wallets – an Overview
Before we tackle the importance of hardware wallets and the best options out there, let’s take one step back. Firstly, what are crypto wallets?
They are software or physical devices which store public keys for Bitcoin or other cryptocurrency transactions. Crypto investors, traders, and miners use them to store and retrieve their digital assets.
There are several types of cryptocurrency wallets, and they all have specific advantages and disadvantages.
Web Wallets
An online Bitcoin wallet or web wallet is one of the most popular options for storing your assets. They are a particularly great option if you’re storing smaller amounts of cryptocurrency.
The main requirement for using this type of wallet is an internet connection. You need to have a stable connection to reach, store, and make payments with your wallet.
Your online Bitcoin wallet provider stores your private key on their server. What you get with this type of crypto wallet are fast transactions, managing multiple cryptocurrencies, and plenty of convenience. The downside is the potential for online hacks and scams.
Mobile Wallets
If you prefer trading on your mobile device, you can do so by using a mobile wallet. They come with some added features such as QR code scanning and the ability to trade on the go. However, if your phone gets damaged or stolen, you risk losing your crypto assets.
Desktop Wallets
Another popular option is desktop wallets. All you have to do is download and install them on your laptop or PC. They are an incredibly safe option in case your computer is not connected to the internet.
The downside of this type of crypto wallet is that trading and investing are not as readily accessible as mobile wallets and online wallets.
Paper Wallets
This type of wallet is exactly what it sounds like. You print your public and private keys on a sheet of paper. This is the ultimate “cold” wallet, as it is completely analogue.
There are no risks of hacks, malware, or viruses. However, there are risks to losing the paper and then losing the coins too. Plus, it makes trading much less efficient.
Hardware Wallets – Are They the Best Option?
The final option for storing and managing your crypto assets is the hardware wallet. These are little devices that hold private keys for your Bitcoins or other cryptocurrencies.
In most cases, these devices look like USB flash drives but are securely programmed. When they are not connected to your computer, they’re considered to be cold wallets.
However, you can still use them to make online transactions once you connect them to the internet. A hardware wallet is, without a doubt, the safest crypto wallet option.
Plus, they are excellent for storing large amounts of cryptocurrencies. For many investors and traders, hardware wallets are the only option they’ll consider. Here are the key benefits of using a hardware wallet:
- Your computer never gets access to your private keys.
- The hardware wallet is immune to hacks and viruses.
- Before you spend any coins, you have to confirm the transaction on your hardware wallet device.
- Most hardware wallets are encrypted with PINs which adds more security.
- Many companies offer opensource Bitcoin wallet options, which allows users to validate operations on the device.
- Hardware wallets can host more than once cryptocurrency.
Top Hardware Wallets for Cryptocurrency
If you’re considering Bitcoin mining or have larger amounts of cryptocurrency you want to store, hardware wallets are undoubtedly the best option for you.
Below, we’ll introduce you to the five best hardware wallets for cryptocurrency and tell you a little more about each.
1. Trezor One
This is one of the most popular hardware wallets on the market. It supports Bitcoin, Ethereum, Bitcoin Cash, Ripple, Litecoin, Dash, and several other big cryptocurrencies.
The device is easy-to-use, has an excellent design, and can randomly generate a pin code which keeps your device super secure.
2. Trezor Model T
This is a somewhat improved version of the Trezor One. It has a better screen, doesn’t have any buttons, and is completely touchscreen.
You get a USB cable, magnetic doc, recovery seed cards, and a holographic seal over the connector. Even more coins are available with Trezor Model T than with Trezor One. However, it’s also more expensive.
3. KeepKey
KeepKey has been around for over five years and has been consistently expanding the number of cryptocurrencies they accept. You can store Bitcoin, Bitcoin Cash, Dogecoin, Ethereum, Litecoin, and Bitcoin Gold.
This is not a very big device and features a somewhat elegant design. It has a high-quality LCD which simplifies the use of the wallet. It also offers top-notch security.
4. Ledger Nano S
This is a pretty compact USB device. It’s based on a smart card and weighs just under 6g. The wallet supports a truly impressive number of cryptocurrencies, including Stellar, Tron, Tether, Monero, Eos, Cardano, and Bitcoin, Ethereum and Litecoin. Also, it’s easily integrated with a large number of software wallets.
5. Ledger Nano X
A great-looking hardware wallet with excellent security due to the use of two chips. The notable difference from the Ledger Nano S is that investors can use more than one cryptocurrency at once.
The set-up is straightforward, and it also has Bluetooth functionality. However, the downside is that it’s not open-source hardware.
Choose the Wallet That Works for You
The hardware wallet is not going to be the first step on your cryptocurrency journey, that’s for sure. However, when you accumulate enough coins and get acquainted with how to mine or trade Bitcoin as well as other coins, you’ll see the benefit of having a hardware wallet, along with a free Bitcoin wallet.
The top hardware wallets for cryptocurrency we’ve talked about are truly excellent options and will likely provide you with a great sense of security regarding storing your digital assets.
