Do you need to protect all your cryptocurrencies from malicious people and are you looking for the safest and most efficient method on the market? Great, because in this article I’m going to show you the best hardware wallets commercially available and the criteria for a careful choice during the purchase phase.
However, if you are not clear about what these wallets are and what advantages they offer compared to software ones, then let me give you a quick explanation. Hardware wallets are real electronic wallets where you can deposit your crypto in a place that is disconnected from the network, thus making them potentially inaccessible to attempts to hack your PC or smartphone. Similar to common USB sticks, they store private keys for transactions and can be connected to a computer or mobile device to send and receive cryptocurrencies.
THE wallet software instead, they generally consist of apps or browser extensions, which keeps them constantly connected every time the computer is turned on and connected to a network, involving a significant amount of additional risk for all users. Having made this necessary premise, let’s now see the criteria for choosing a good wallet.
Index
- How to choose a hardware wallet
- Do you really need a hardware wallet?
- The brand
- The security offered
- The cryptocurrencies it can accommodate
- Best hardware wallets
- Best hardware wallet for NFT
How to choose a hardware wallet
There are some parameters that are really fundamental and that absolutely cannot be left to chance when choosing your cold wallet (wallet not connected to the network), under penalty of losing your possessions or in any case leaving them exposed to malicious people.
Do you really need a hardware wallet?
I know, if you have come to this page it is likely that you have already carefully considered the need for this wallet and, if so, go to the next point. If, on the other hand, you are looking for information and are still a little confused as to whether this type of hardware is really necessary, then let me clarify your ideas.
This accessory obviously has a cost, which can vary between 50 and 200 € (or even more for particular models), which may or may not affect the budget. If you have invested small amounts in cryptocurrencies (let’s say under € 1,000) and you do not intend to allocate more capital, then you could also decide to do without it.
Obviously here we are talking about safety, which is absolutely justifiable even if you want to invest € 1, it all depends on your intentions. It should also be considered that this type of wallet is particularly suitable for those who want to accumulate crypto over the long term, while it appears less useful if you are trading oriented or in any case to a short term detention.
In fact, if your goal is to make a lot of exchanges, the transaction costs for sending digital coins to one of these devices could penalize you a lot. In this case leave money on exchanges such as Young Platform or eToro is certainly the most practical, as well as economically efficient, solution available.
The brand
Here we are not talking about mere fashion or subjective aesthetic-stylistic canons, but about proven efficiency in the field during the years. In the world of cryptocurrencies it is constantly expanding, new names are coming out every day that aim to become protagonists and offer very advantageous offers, this not only in the wallet sector.
However, remaining focused on this specific area, it is clear that it is not impossible to find models that offer more on paper at lower prices, but is it really worth the risk? As I will explain in the next few points, there are some specifications hidden “under the skin” of the device that can really make a difference.
A wallet that is too cheap could be such because it does not care about some of these essential parameters, or simply not properly tested against hacking. A brand like Ledger or Trezor they have millions of satisfied users behind them and proven security over the years, something the new names don’t have.
Of course, being new or less known on the market does not automatically mean lower quality, quite the contrary! Very often emerging brands try to put more effort and value to be competitive in the market, but here there is no room for room for error. Relying on a wallet that has flaws can seriously lead to total capital loss, so is it really worth saving a little bit and relying on chance?
If you really intend to try a new model, I recommend that you allocate only one on it small slice of savings, waiting to see if it deserves the trust given over time (perhaps keeping an eye on any negative news about it). For the rest, bet on one or more models with a granite name, perhaps separating the capital across multiple wallets if you have important figures.
The security offered
Obviously this could not fail to be one of the key factors on which to base the choice, but it is not so easy to evaluate as it is necessary to understand well what are the parameters that define a good wallet. Among these the most important are certainly the chip, the software and the security checks.
Starting from chip It is good to know that not all those that make up the wallets are the same, in fact there are versions made specifically to avoid hacking by external factors. This type of hardware is called Temper-resistant and it is the foundation on which a good cryptocurrency wallet must rest.
Secondly the software which can be dedicated or a version also used for many other different devices. Obviously a dedicated software and created ad hoc for a given wallet really makes a difference in terms of security, especially if made specifically for the protection of cryptocurrencies, compared to one designed for more general use.
Finally, the security checks, which become a fundamental factor every time you try to access the device or want to do an operation. There are wallets that ask for a PIN and a password in order to get into the software, with some having a real physical button to be pressed to approve the transaction. Each of these factors represents an additional obstacle against the bad guys, so it is good not to underestimate this aspect.
All these things together go to define the goodness of the wallet and, yes, also its purchase price. The advice is always to do not aim for savings, especially when your own crypto savings are at stake.
The cryptocurrencies it can accommodate
Here the speech is simplified a lot as it is played on the classic law of numbers, with the best altcoin wallet identifiable in the one that has the longest list of managed coins. Of course, here we must also go and see the actual importance of each individual currency.
A cold wallet that can receive 10,000 crypto but isn’t meant for bitcoin or Ethereum is pretty useless for digital gold investors, but I doubt such models exist. Generally hosted digital currencies are taken in hierarchical order by capitalization and importance on the market, so if you intend to invest in the main ones, any device is likely to be fine.
If, on the other hand, you are looking for more niche altcoins, then you need to go and see which brands can give you the possibility to send coins to their wallets. If you want to get an overview of which are the best crypto, in my tutorial on the subject you will find some good clues. If, on the other hand, you want to know how to buy your first bitcoins, this other article that I have just linked to you will answer your questions.
Best hardware wallets
Let’s now see what are some of the best wallets on the market: some of them more suitable for bitcoin, others designed for NFT or to give easy access to De-Fi (i.e. decentralized finance).
Ledger Nano X
Ledger Nano X it is one of the best devices on the market, able to accommodate an almost infinite number of cryptocurrencies as well as the ability to manage and exchange the main ones directly from the app. Its security level is maximum with a secure and certified chip, it also has the Bluetooth function to connect the device to the phone directly from the app and quickly move currencies, which makes it one of the best hardware wallets for De-Fi.
Ledger Nano S
The Ledger Nano S it is on the same level as the X when it comes to the level of security and the cryptocurrencies that can be sent or managed by the device. The difference in price (the S costs much less) is all identifiable in the Bluetooth technology that can connect the device to the phone and move your belongings quickly and smoothly. The Ledger Nano S is designed for those who accumulate and perform few operations, while the X for all those who use cryptocurrencies on a daily basis.
Trezor model T
Trezor T it’s great hardware wallet for staking as it offers the possibility to interface with the PC app and move your belongings with ease. Here, too, the level of security is at the top, with a randomly generated PIN code for access to prevent third parties from being able to steal the code. This model in particular creates this PIN directly on the device and offers a color touch screen to manage it.
Trezor One
Trezor One it is a simplified and cheaper model than the Trezor T but which offers the same level of safety. On the other hand, it loses the color touch display in favor of a monochrome one with which to interface via two buttons on the body of the device. Here the PIN is no longer generated by the device but via PC or smartphone.
Best hardware wallet for NFT
Here it needs to be clarified that there is no real hardware wallet for NFT at the moment, but that doesn’t mean they can’t be safely collected. To have a good degree of security it is in fact necessary to send the non-fungible token to a wallet such as Metamask or Trust Wallet and connect this to a hardware wallet such as Ledger Nano X or S. In this way, although the NFT remains on a hot wallet , the private key that controls the digital artwork is enclosed in the Ledger and will only be controllable via this device and in no other way.
If you want to deepen the issues related to the world NFT, I invite you to read my tutorial on how to create NFT for free. If, on the other hand, you want to take a look at the wallet software for crypto, read this other guide.
