You’re intelligent and understand that cryptocurrency is the driving force of the fourth industrial revolution; you also know that Bitcoin is cash with wings. The truth is that crypto is a libertarian paradise where you’re responsible for secure cryptocurrency storage that keeps your private keys intact.
If you’re afraid of losing your crypto investment and want to treat your crypto wallet like an onion so you don’t cry when you open it, cold wallets are the solution for safely storing your cryptocurrencies. This guide reviews crypto hardware security and lists the best cold wallets in the market.
Introduction
Like every diligent investor in cryptocurrencies, looking for secure storage for digital assets is paramount, and that’s where cold storage devices for crypto come into play. We believe you already know that cryptocurrency wallets don’t store real crypto tokens, unlike your regular wallet, where you keep actual cash.
Your digital assets exist only in their respective blockchain networks; you can only access them through a private key. Through these keys, you prove ownership of your crypto assets so you can make any transactions. Unfortunately, you cannot access your money if you lose your private key.
Since securing your cryptocurrency keys is vital, most investors choose cold wallet solutions. Also known as hardware wallets, these cryptocurrency wallets are famed for providing a highly secure method for storing digital tokens. The main difference between cold storage vs. hot wallets is that cold wallets are offline wallets.
Cold wallets offer cryptocurrency storage in paper wallets of physical devices like USB drives, offering unparalleled protection against malware or hacks. These and other substantial cold storage benefits make the cold storage of Bitcoin a preferred choice for long-term crypto investors or those with sizeable digital asset investments.
Best Times to Use Cold Crypto Wallets
Cold wallets may be less convenient than their hot wallet counterparts but score top marks in crypto wallet security. Since they’re always offline and hackers cannot access them remotely, the following are among the best situations where they come in handy.
Long-term Storage: A cold wallet is handy if you plan to HODL your cryptocurrencies for several months or years since no one can steal them.
Large Sums of Cryptocurrency: Storing large amounts of digital assets in a hot wallet is dangerous since hackers are always on the prowl for targeting online wallets.
Infrequent Transactions: It’s best to use a cold wallet if you don’t have a reason to access your crypto frequently or when you don’t always use them.
Traveling: A cold wallet is the better option when traveling, and you may have to use public Wi-Fi or a risky, insecure network.
Diversification: Since diversifying your crypto assets across different wallets is advisable to reduce the risk of losing everything in the event of a theft, cold wallets offer the best option for storing portions of your crypto portfolio.
More on Cold Wallets: The Ice Fortress: Your No-Nonsense Guide to Cold Wallets
Setting up a Cold Crypto Wallet
The most critical cryptocurrency cold storage best practices are ensuring you buy your device directly from the manufacturer to avoid scams. Besides keeping your cold storage in a secure place to prevent losing it, always keep your seed phrase safe because you can use it to retrieve your crypto assets when you purchase a new hardware wallet. The following is a typical cold wallet setup guide:
- Connect your PC to a cold storage device
- Download the related software
- Keep the seed phrase or backup code sent to you securely
- Follow the directions given to you to create a wallet depending on your digital asset of choice
- Create a PIN to access your hardware device
- Add your tokens to your wallet by selecting your device
- Log in and transmit your tokens to your cold storage
The Best Cold Crypto Wallets
As a cryptocurrency owner with a wallet, you act like your own bank, and your assets’ safety depends on you. In this hardware wallet comparison list, we consider several options in terms of their features.
Trezor Model One
The Trezor Model One is a secure cold wallet supporting over 1,300 cryptocurrencies. The wallet’s renowned features include high-level security, such as encrypted private keys, offline storage, and a secure PIN system.
The Trezor wallet robust security features make the Trezor One Model a user-friendly user interface that seamlessly integrates with the manufacturer’s exchange for flawless transactions.
Ledger Nano X
Ledger Nano X is the firm’s 2nd generation cold wallet that’s popular with users who can easily manage, exchange, and buy or sell crypto assets on the go. In addition to laptops, users can connect their devices to their desktops, iOS, or Android devices to access private keys.
Ledger Nano X users can quickly check balances and send or receive crypto using Ledger Live software. The device supports over 1,800 different crypto coins and tokens. Moreover, users can stake their crypto via the device and earn rewards based on their available balances.
Ledger Nano S Plus
Despite being a Ledger wallet that’s priced a little lower, Ledger Nano S Plus offers features like transaction verification on the device and offline storage similar to its more expensive siblings. Moreover, Ledger Nano S Plus supports over 5,000 digital assets, making it affordable for users to secure their cryptocurrencies safely.
KeepKey
The KeepKey wallet is a secure hard wallet that enables users to integrate Web 3.0 DApps. Furthermore, the cold wallet supports over 7,200 digital currencies, giving the utmost security for users’ private keys. The device’s advanced features and an affordable price tag make KeepKey a compelling candidate for offering secure cold storage.
Trezor Model T
Trezor Model T is an updated version of the world’s leading cold cryptocurrency wallet. The encrypted hardware wallet offers advanced cold wallet security features and a touchscreen.
The wallet enables users to access third-party cryptocurrency exchanges, a feature that helps run the device more efficiently. Trezor is designed to store multiple crypto keys easily and supports at least 1,000 cryptocurrencies.
SafePal S1
The SafePal S1 cold crypto storage offers users a simple, safe, and easy-to-use digital asset management solution. The device supports over 10,000 cryptocurrencies, NFTs, and at least 19 blockchains. The cold wallet’s leading features include 2FA, recovery seed, and the ability to combine passphrases. The stylish SafePal S1 has a powerful400mAh battery, is designed to be compatible with Android and iOS systems, and allows users to do crypto staking.
Ellipal Titan Bundle
Ellipal Titan Bundle is the world’s first air-gapped hard wallet that offers total network isolation. Users’ crypto asset safety is guaranteed since the device doesn’t have an online component. With the device’s air-gap feature, there’s no need for any other added security layer as it remains completely offline. Still, Ellipal Titan Bundle supports Android and iOS systems.
CoolWallet Pro
CoolWallet Pro is a mobile hardware wallet that you can easily connect to your device of choice via an encrypted Bluetooth connection in a 10m radius. The device lets users interact with numerous assets, including DApps, DeFi, NFTs, and cryptocurrencies. CoolWallet offers robust multilayer security features besides having five processors to control its power management.
Keystone Pro
Keystone Pro is an entirely air-gapped cold storage for Bitcoin with a four-inch touchscreen, secure fingerprint, and open-source firmware. The device offers PSBT Bitcoins as an extra protection against malicious attacks.
It offers Partially Signed Bitcoin Transaction (PSBT) Bitcoins for protection from malicious attacks and additional security. Furthermore, Keystone Pro is a waterproof device, giving it a perfect advantage for seed phrase recovery.
Blockstream Jade
Blockstream Jade has evolved to become one of the most multi-functional hardware wallets, whether you’re involved in crypto mining or dealing with multiple cryptocurrencies.
The device is a respected cold wallet supporting numerous assets on the Liquid network besides having an extensive network with Bitcoin. Blockstream Jade is relatively affordable, besides providing robust security features on the same level as a Ledger wallet.
Conclusion
Your choice of the top cold crypto wallet will depend on different features, including your crypto asset, budget, trading needs, and experience level. Since not all hardware wallets are created equal, consider any device’s cold storage security features before making a final decision.
If you’re looking for cold storage devices for institutional purposes, you could think of multi-signature wallets, so access will require the authorization of more than one person.
More on Wallets:
Where to Store Your Crypto? Wallets vs. Exchanges
If you’re going to prevent your Bitcoin from feeling cold because someone else opened your wallet, take the time to learn about cryptocurrency cold storage tips since security is paramount in cryptocurrencies. Regardless of your choice, always remember to keep your private keys secure.
Disclaimer: All materials on this site are for informational purposes only. None of the material should be interpreted as investment advice. Please note that despite the nature of much of the material created and hosted on this website, HODL FM is not a financial reference resource and the opinions of authors and other contributors are their own and should not be taken as financial advice. If you require advice of this sort, HODL FM strongly recommends contacting a qualified industry professional.
