Crypto exchanges getting hacked is nothing new. And there is a high chance you’ll find the term Hot Wallet in most crypto hack news because hot wallets are low-hanging fruits for hackers. So, don’t let your crypto coins sit on an exchange for a second longer after the purchase. Because their wallets will most likely be HOT, and you don’t have the private keys. And do you know what they say in the crypto realm: So, if you’re holding your coins on an exchange, you’re trusting them. If you rely on an exchange, then why mistrust a bank. But blockchain is birthed out of concepts like decentralization, self-reliance, and zero-trust. And it generally proves an excellent idea to avoid undermining that fundamental spirit. A more theatrical explanation by this Ledger guy:
Conclusively, get a wallet!
What’s a Crypto Wallet?
Unlike a regular wallet that keeps the fiat currencies, a crypto wallet only keeps your private keys. Your crypto, anyways, lives on the blockchain. In addition, they allow you to transact in cryptocurrencies. And you can also use DeFi (Decentralized Finance) and Decentralized Applications (dApps) with them. Put simply, a crypto wallet gives you access to everything blockchain.
Types of Wallets: Hot and Cold
In a nutshell, hot wallets are software applications. Most hot wallets are free to use and sit on the installed device. Sounds good? Not so fast! One major drawback is their constant internet connectivity. They are susceptible to phishing or spyware. So, a hacker can steal your private keys if you aren’t vigilant enough:
So straight away, if you can protect yourself from the cyber threats, don’t need the portability of a cold wallet, or just recently started with crypto–download a hot one. I recommend trying Metamask (for Ethereum blockchain) before looking elsewhere. For others, cold or hardware wallets are the way to go. They come in various form factors:
Typically, they are coupled with an application operated from a desktop or smartphone. They connect to these devices wireless or via a cable. And they are perceived safe because they connect to the internet (become hot) only while transacting. Besides, some never connect to the internet or any other device. Ultimately, they are your best bet if you value security. But before proceeding to the list, let’s check:
Benefits of Hardware Wallet
Apart from the initial price tag, hardware wallets clearly edge out hot wallets in crucial areas:
Best Private Keys Vault: They are the safest place to keep your private keys. You do not trust an exchange or software. Extra Layer of Security: You can set a pin to ensure nobody has access to your wallet. In addition, integrated applications allow setting a password for extra security. Transaction Verification: You physically verify each transaction. That’s much like signing a cheque. Practically Unhackable: A regular computer virus is irrelevant to a cold wallet. Your computer can get corrupt, but your hardware wallet probably won’t.
Now that we are done with the starters let’s start the main course.
Ledger Nano X
Nano X is the latest offering from a top-notch name in the hardware wallet domain: Ledger. This can store crypto from 100+ applications from the vast repository of 5500+ tokens. With the Ledger Nano X, you can buy, sell, stake, swap crypto, and manage non-fungible tokens.
This device is secured with a pin-code backed up by a 24-word recovery phrase. In addition, you can set up a 2FA (Two Factor Authentication) for additional safety. The Ledger Nano X has Bluetooth compatibility, improving mobility while using the Ledger Live application.
Ledger Nano S
Ledger Nano S is the older cousin of Nano X. With less than half the price of the younger sibling, Nano S is perfect for crypto minimalists.
In comparison to Nano X, it lacks Bluetooth connectivity, settles with a smaller display, and can store just three crypto applications at a time. Other than these few shortcomings, Nano S is equally robust in security. Ledger has sold 2 Million+ units of Nano S to date, which further cements its credibility.
Trezor Model T
Trezor Model T is your option against the Nano X. This similarly reputed hardware wallet has taken a slightly different approach than the previous two on this list.
First, you get a bigger touchscreen LCD panel to support the wallet functions, which is much more convenient and secure. And the Trezor firmware is open source while the Ledger’s isn’t. But, you’ll be missing on Bluetooth with the Trezor Model T. Besides, Trezor has a shorter, 12-word recovery phrase. However, Trezor, as additional functionality, allows you to use a micro SD card as encrypted storage. Additionally, you’ll have the upper hand in security with its Shamir Backup:
Trezor also has excellent support for multiple cryptocurrencies. Overall, you have an excellent hardware wallet in Trezor Model T.
Trezor Model One
Trezor Model One is the stripped-down version of Model T. With less than 30% of the price of Trezor T, you miss out on a few bells and whistles. First, the screen doesn’t support touch. It’s just there to verify the transaction details. You operate the wallet operations with two hardware buttons placed beneath the screen.
Additionally, you let go of the Shamir backup, Micro SD card, and few crypto coins support in favor of a smaller form factor with lesser pricing. Both Trezor models are powered by USB cables and not batteries as with their Ledger counterparts.
SecuX V20
SecuX V20 competes head-to-head with Ledger Nano X and Trezor Model T. It supports Bluetooth and has a beautiful circular design with aluminum sidings giving a premium feel.
This hardware wallet has a larger touch screen and feels tougher than its peers. It currently supports storing 1000+ crypto coins and tokens. Being a new entrant, the coin support may not be as extensive as Trezor & Ledger. But practically, hardware wallets supporting a thousand coins are just a marketing gimmick. Most users only invest in a few coins that you should check before purchasing a wallet. V20 uses a pin that you can recover with a 24 seed recovery phrase. There is also 2FA for added security.
SecuX W20 & W10
SecuX W20 is mainly similar to V20. A few differences include its micro USB connection instead of USB-type C.
And with its rectangular shape, W20 resembles a tiny smartphone. Coin support is the same, as well as the screen and the battery size. SecuX W10, on the other hand, lacks Bluetooth connectivity and a battery. It’s powered by micro USB connectivity. Again, the screen size and number of supported coins are identical to its pricey SecuX alternatives.
ELLIPAL Titan
ELLIPAL Titan is a 100% air-gapped hardware wallet–zero network connectivity. This cold wallet transfers data via QR codes. ELLIPAL Titan looks like a small smartphone. The 3.97-inch color touchscreen is one of the biggest you can expect among hardware wallets. It’s dust and waterproof with impact resistance. This anti-tamper wallet will delete the information held if it detects any physical sabotage.
As of this writing, ELLIPAL Titan supports 40+ blockchains with 10000+ crypto tokens. Finally, this allows multiple accounts and comes with DeFi support as well.
D’CENT Wallet
D’CENT is a biometric hardware wallet that puts a fingerprint sensor as the first line of defense. This wallet lets you play with over 2000 crypto tokens. In addition to USB, you can also use Bluetooth connectivity when paired with the D’CENT mobile application. D’CENT uses a 24-word recovery phrase to regain your crypto holding if you ever lose your wallet.
The OLED screen in D’CENT is large enough for you to see the complete wallet address, which is a luxury in Ledger devices. There are four hardware buttons for day-to-day wallet operations. About security, D’CENT is right there among the top players. Conclusively, this is a top-notch hardware wallet worthy of your consideration.
Keystone Pro
Keystone Pro is a front-runner hardware wallet in terms of features. This is a 100% air-gapped device, just like ELLIPAL Titan, which means no USB, no Bluetooth. Similarly, it uses QR codes to transact. There is micro SD card support for firmware updates. You can use Keystone pro with four AAA batteries or the given rechargeable battery pack.
This feature-rich hardware wallet also has fingerprint biometric authentication. Besides, its 4-inch color touchscreen will help you skip unnecessary scrolling to see the complete wallet address. And you have Shamir backups to make sure the recovery option never dies. Finally, it’ll self-destruct the private keys upon detecting any tampering. Keystone also has a cheaper Essential version, which has everything as Pro, except for the self-destruct, fingerprint, and rechargeable battery.
CoolWallet Pro
You will find CoolWallet Pro the most unconventional option on this list. This comes in the form of a rechargeable credit card, with a tiny calculator-styled display and a conveniently-placed button. It connects to your smartphone via Bluetooth for crypto transactions and other operations. CoolWallet Pro supports DeFi, NFTs and right away is for advanced crypto users.
This card-sized wallet suits traders and comes with multi-currency support. You can also stake your crypto coins with this slick hardware wallet. They also have a CoolWallet S that is focused on beginners. It only misses some features like staking but is significantly more economical.
Conclusion
Hardware wallets are a no-brainer for serious crypto investors. They are just necessary one-time investments if you’re planning to stay in there for long. Notably, it’s essential to check about the supported coins at the time of purchase because your wallet will be useless if it doesn’t support the coin of your choice. Trading, investing, and staking–all bring along some taxes, so check out our crypto tax software to ease the tax calculation.
