Best Hardware Crypto Wallets
Bitcoin and other crypto assets are ledger entries on a blockchain. These assets are accessed using your private keys and can be stored in several ways. One option is to leave them on the crypto exchange where you purchased them. This is risky as crypto exchanges are hacked almost every day and any crypto in a hot wallet (one that is connected to the internet) is vulnerable to online theft. Another option is to store your assets in an online wallet app. The third, and most secure way to protect your crypto assets, is in a hardware wallet.
- Supported Cryptos
1800+ (BTC, ETH, ADA)
Typehardware
Cost$59
The Ledger Nano S is the first generation hardware wallet introduced by Ledger, one of the first hardware wallets ever made. Like the Nano S is compatible with 1500+ cryptocurrencies. The Nano S does not come with a USB type-C cable, so users with more modern smartphones may have trouble connecting to their devices.
The Nano S is essentially the same as its successor, the Nano X, minus a couple of features. Both support the same list of cryptos and have access to the Ledger Live software. Unlike the Nano X, Nano S lacks Bluetooth connectivity, and it only stores up to three apps versus the 100 that can be simultaneously stored with Nano X.
The Nano S only has enough storage to make wallets for a limited number of cryptocurrencies at a time. If you were to delete an app in order to add another type of cryptocurrency, their online guide says it will not affect your assets.
The deleted wallet, and crypto within it, can still be seen in Ledger Live, but the wallet will not be seen on the Ledger device itself. This means that if you would like to send or receive to the wallet you have deleted, you may have to delete another wallet to make more room.
That said, at just $59, the Ledger Nano S is a fantastic wallet for those looking to store their cryptocurrency safely for a fair price. It is also quite easy to use with Ledger Live, making it an ideal product for a beginner looking for safe and simple storage for a handful of cryptocurrencies.
Pros
- Access to Ledger Live
- Secure storage for a low price
- Open-source software with added benefit of customer and community support
Cons
- Max storage of three apps
- No wireless Bluetooth feature
- Supported Cryptos
1800+ (BTC, ETH, ADA)
Typehardware
Cost$119
The Ledger Nano X is the second generation hardware wallet from Ledger, a French company launched in 2014. Ledger’s first cryptocurrency product, the Ledger Nano S, was one of the first hardware wallets on the market and dominated the space for a number of years.
The Nano X resembles a USB drive and connects to your device via USB or Bluetooth. This means that you can connect the wallet to your iOS or Android device and do not need a computer. It supports over 1,800 cryptocurrencies. This list continues to grow each year as the Bitcoin community asks for support for their favorite cryptos.
While the device itself is a cold storage hardware wallet, the Ledger team has created the Ledger Live software that provides a user interface for all your holdings. This gives users the ability to add new wallets for different cryptocurrencies to their devices and manage their portfolios. Ledger hardware wallets have been, and currently are, the most popular in the industry. The Ledger also comes with a 1 USB-C to USB-A cable so that it can be connected to either a desktop computer or a smartphone if preferred over Bluetooth.
Pros
- Ledger Live has an intuitive and convenient user interface
- Stores up to 100 different apps
- Open-source software with added benefit of customer and community support
- Convenience of Bluetooth connectivity
Cons
- Bluetooth integration a potential vector of cyber attack (USB is still an option)
- Bluetooth feature not perfected
- Limited wallet storage
- Supported Cryptos
1600+ (BTC, ETH, ADA)
Typehardware
Cost$190
Trezor, like Ledger, is a name synonymous with crypto cold wallet storage. Its Model T is the second generation of hardware wallets they have created. The Trezor Model T is very much like the Ledger, but it gives the user the ability to access third-party exchanges, like Changelly and CoinSwitch, directly in its website interface. While this is quite convenient, it hardly justifies its more expensive price tag of $190.
The Model T utilizes a touch screen, which can be easier to use for beginners than the buttons their previous model used. The Trezor also has a MicroSD card slot, allowing you to use MicroSD cards to encrypt the PIN and further protect your device from attacks.
Like the Ledger Nano X, the Trezor Model T also comes with a USB Type-C cable so that you can connect to either your smartphone or desktop computer. Currently, the Trezor Model T supports more than 1,600 different cryptocurrencies. Some consider the Model T to be a bit more secure than the Ledger Nano X due to the X’s Bluetooth connectivity (although Ledger's Bluetooth is optional).
Pros
- Web-based user interface with exchanges built-in
- Massive list of supported cryptocurrencies
- Open-source software with added benefit of customer and community support
Cons
- Higher price point than others
- Small touchscreen for typing
- Confusing for a first-time user
What should you consider when buying a cryptocurrency hardware wallet?
Yes, a hardware bitcoin wallet offers greater security, but you still need to make sure that you are buying a decent device from a reputable source.
You also need to decide how much security you need. For some, having the air gap of a separate wallet is good enough, while others will feel the need to beef up security, and have a device that offers higher levels of security, biometrics, and even isolating the device from possible sources of attack, such as USB chargers.
You also need a backup, just in case. Maybe this is another hardware wallet, or maybe you're going to go for a "cold storage" solution that might include having your private keys printed on paper, or even engraved, stamped, or etched into metal.
Another consideration is price. Unless you're planning to hold huge cryptocurrency investments, then it might sting a bit to spend over $100 on a wallet.
What are the pros and cons of hardware crypto wallets?
Pros
- Improved security: Total air gap between your private keys and everything else.
- Better control: You hold your keys and can keep them separate from all your other devices.
- Easy transportation: Bitcoin hardware wallets are small and easily transported. But they can also be stored securely in a safe or safety deposit box.
- No reliance on a third-party app or web service: Apps and services come and go.
Cons
- Cost: Hardware bitcoin wallet solutions aren't free.
- Extra complexity: There's always a learning curve with hardware, and some bitcoin wallets have quite advanced features that will have you reaching for the manual.
- Loss, destruction, theft: Hardware can break, be lost, be stolen, become obsolete, or succumb to all sorts of mishaps.
- Another thing to take care of: If you need to make a transaction, you'll need your wallet!
Frequently asked questions
There are two kinds of wallets: Hardware and software. A software wallet is an app that lives on your computer or smartphone, or even on the web, while a hardware wallet is a separate physical device (much like a wallet or purse). This hardware wallet is connected to a PC or mobile device to carry out transactions.
Software wallets range in price from free to, well, not free, so they are great for those starting out. Since hardware wallets cost you money, there's a financial investment that you have to make right from the beginning.
It's important to note that you don't need a hardware wallet to buy, store, or send bitcoins or any other cryptocurrency. Some people hold many thousands of dollars in bitcoin or other cryptocurrencies and don't use a hardware wallet.
However, where hardware wallets shine is the improved security that they offer compared to an app that lives on a smartphone, computer, or in the cloud. Having a device that puts an air gap between your private keys and other apps, the internet, and the bad guys offers vastly improved security from hackers and viruses.
Hardware bitcoin wallets put you in complete and total control over your private keys.