Compare The Best Crypto Wallets
June 2023

Not Sure Where to Start? Try Our Hardware crypto wallet guide

For fiat currencies, it is safer to keep your money in a bank rather than keeping it at home. In crypto, it is safer to keep it home with you rather than holding them on a platform. All crypto exchange platforms and bank-like De-Fi companies are at risk of being hacked or attacked. They draw hackers’ attention with their billion dollar portfolios. Hardware crypto wallets are also known as Cold Wallets, they offer the safest way to store your cryptos.

There are different factors that will influence your decision, such as user friendliness, supported currencies, compatibility, portability, and price. We will go thru all details in this part and you have a chance to find more details on product pages. You can also compare different wallets by using our comparison tool.

Different wallet types: hardware vs software

Crypto wallets are software program or hardware device that allows you to store your cryptos safely. Your crypto currencies are not stored in wallets. Cryptos exist in blockchains. Wallets allow you to claim which cryptos belong to which wallet. Wallets are made of private and public keys. Public keys are the address of the wallet that you use to send and receive assets. Private keys are the keys that grant access to the wallet to authorize the transactions. Private keys are like real keys that open a safe deposit box or a vault. You need your private keys to access your wallet. Private keys are the most important. If someone finds or learns your private keys, your funds can be stolen.

There are two types of crypto wallets: Hardware wallets and software wallets. Software crypto wallets are wallet apps that you use on your mobile phone or computer. There are many different mobile, web, and desktop wallets on the market provided by communities, organizations, open-source, and private companies. Some websites are created and developed by communities to help people to create a wallet by using open source software. There are exchange platforms where you can create a wallet and trade and exchange your funds easily. You can use a web wallet to make connections faster. Web apps are the easiest to connect your wallet with third party crypto service providers. But being fast makes web apps the most vulnerable.

You can think that crypto wallets are the remote controller for your crypto assets. You can control your TV with some mobile apps on your phone. Hardware wallets are like TV remotes. You need physical possession of the device and push the buttons manually. Hardware wallets are called cold wallets because they don’t need an active internet connection and require physical action.

Hardware crypto wallets are a great choice for those who hodls cryptos as a part of their investment portfolio. If you have $250 USD worth of cryptos or more, you should spend some money and get a cold wallet. If your assets worth is lower than $250 USD, you can use hot wallets to avoid the cost of the wallet. It is suggested to hold the amount that you would risk losing in hot wallets. If you are hodler and want your cryptos to be fully safe, then a hardware wallet is a great choice.

What Are Cryptocurrency Hardware Wallets?

Hardware crypto wallets also known as cold wallets are the safest way to store your crypto assets. Hardware wallets are the devices where your private keys are stored in a secure offline environment. You can use your hardware wallet by connecting to a computer or mobile phone to manage your funds. Hardware wallets come in different sizes and features. Different wallets use different connection methods such as Airgapped connection, MicroSD, Bluetooth, or USB cable. Consider supported crypto currencies and compatibility when you decide which cold wallet fits your needs.

You can buy, sell. trade, and exchange your cryptos by connecting your cold wallet with a mobile phone or computer. Most wallets require a physical button push to finalize the transactions. That is the biggest protection against software hacks because no matter how good the hacker is, no one can push a button remotely. Physical security makes cold wallets even safer.

You can use a PIN code or fingerprint to activate your wallet. The wallets don’t work without entering a correct PIN or providing the correct fingerprint. The biggest advantage is cold wallets perform offline. the wallets don’t need an active internet connection. Transactions can be completed with layers between the internet mediator device (mobile phone or computer) and your wallet.

Advantages and Disadvantages of Crypto Wallets

Ease of use

Different manufacturers have different apps for their hardware products. You need intermediate software installed on your phone or computer to use your hardware wallet. Before making your decision, there are apps for mobile, desktop, and web. Some wallets don’t have an app for IOS or MacOS. Make sure you have a compatible device that you can use with the wallet you are buying.

When you are looking for a wallet, make sure the wallet fits your needs well. There are different hardware wallets options for beginners, or professionals, active traders, and long term hodlers. Finalizing a transaction takes quite a time for some wallets because of extra security features. You can complete transactions completely offline if your hardware wallet supports an airgapped connection, QR reader, or MicroSD card. Completing operations offline is the safest but each transaction takes quite a time. If you are actively trading or using a hardware wallet, you can choose a wallet with Bluetooth or a USB connection.

Most hardware wallets are in the size of a USB or a credit card that you can easily carry in your pocket. There are also some bigger size wallets in the size of a tablet. The size of the device is also an important factor when you decide.

Hardware wallets require no KYC. It means you can use your hardware wallet anonymously. You don’t have to pass or complete an identity check or prove your residency. Hardware wallets are completely independent from any platform or regulation. You can directly use your wallet on decentralized blockchains without exposing your identity. There is a question mark about the companion apps. Companion apps are provided as a user interface app to utilize your wallet on a computer. Some companies provide open source companion apps, some don’t. We can not be sure if our data is traced or recorded by the app provided by private companies. There shas been many data breach failures at crypto exchange platforms. You should consider using an open source mediator app to protect your datas.

Security considerations and risks

Hardware wallets are the safest if you consider hodling your cryptos. You are the only one who can access the wallet unlike exchange and DeFi platforms. You will be provided a 12 or 24 key words that unlock the wallet. Hardware wallets are not connected to the internet when you are not using so it is impossible for hackers to reach your wallet. Besides many security features, the biggest advantage for hardware wallets is the necessity of physical possession. You need the wallet physically to be able to reach funds. Some hardware wallets can perform in complete isolation. Especially wallets with airgap connection feature are the safest because they are never actively connected to the internet and can not be interfered by third parties.

First of all, most wallets require a PIN to be unlocked. Entering the PIN is the first security layer for most wallets. The recent news show that some hardware wallets can be cracked There is other methods to increase the security with hardware wallets such as fingerprint reader, QR readers, Bluetooth connection. You can use your fingerprint as a PIN depending on the wallet type.

One of the most important things about wallets is their firmware. Most reliable wallets are designed to work on open source software. Open source softwares are good because you can be sure if the company has access to your information or not. Open source softwares can be contributed and developed by individuals and communities independently. Having an open source software is a plus for wallets.

Backup and restore (seed phrases)

All vaults and safe deposit boxes have a key. It works the same for your wallet too. When you first create a wallet, you will be provided 12 or 24 seed key words in an order. You need seed phrase to recover your wallet in case of lost, damaged or stolen. It is called the private key of the wallet. Never share your private keys with anyone. If your suspect that somehow your seed phrase is exposed or found from wherever you hide, Take action immediately to change the seed phrase or move your funds to another wallet.

In short, your seed words (private keys) are your spare keys if you are locked out. You will use a PIN, fingerprint, or QR code to unlock the wallet in daily use. But if you want to transfer your wallet, change or upgrade the device, you will use your private keys to do this.

How to purchase a hardware wallet?

Most hardware wallet companies ship worldwide or have a wide distribution network with official resellers. You can click on the ‹Go to Store› or ‹Buy Now› button on our website and you will be directed to the official shopping page of the manufacturer company.

You can also use a major shopping website, where independent sellers are selling. But it is highly recommended to make purchases only from official sellers. Because you never know if third parties are involved during the shipping process. You should be the first person to open the box. Most wallets come in sealed and traceable packages. Make sure you are the first person peeling the seal and opening the box. There are different methods used to ensure the process traceability, you can learn about process traceability on our product page or company's official website.

Always be aware of the manufacturer company and where the wallets are made. Many companies are manufacturing and selling crypto hardware wallets. But you must select a reputable company with a clear background. Before choosing your wallet, choose the manufacturer company first. You can consider the location of the company and where the manufacturing operations are done. It is very important where the cold wallets are made. Most trusted companies prefer to have their manufacturing operations performed in the same place where they are located to keep the production process under surveillance and to guarantee security.