If you are serious about bitcoin and maybe other cryptocurrencies, you need a safe cryptocurrency wallet to store your coins. Software wallets are convenient, but they’re not as secure as hardware wallets. Hardware wallets store your private keys offline, making them much more difficult to hack. They are also more difficult to lose or steal, as they are physical devices that you need to keep with you. In this article, we will identify the best crypto hardware wallets on the market.
Popular hardware wallets are Ledger and Trezor. These are pretty easy to use and allow you to keep your bitcoin safe from intruders. Similar wallets include KeepKey, Digital Bitbox and Coldcard. How do they work?
How crypto hardware wallet works
A crypto hardware wallet is a physical device that stores your cryptocurrency private keys offline. This makes it much more secure than storing your private keys on a computer or mobile device, which could be vulnerable to hacking attacks. When you use a hardware wallet, your private keys never leave the device. This means that even if your computer or mobile device is compromised, your cryptocurrency is still safe.
To use a hardware wallet, you typically need to connect it to your computer or mobile device using a USB cable. Once the wallet is connected, you will be able to view your balance and send and receive cryptocurrency. When you send cryptocurrency from your hardware wallet, you must physically confirm the transaction by pressing a button or entering a PIN on the hardware wallet. This helps to protect your cryptocurrency from unauthorized access.
To see your balance or to receive Bitcoins, you do not need internet access at all. But if you want to transfer bitcoins out of your wallet, you do need a connection to sign the transaction.
During the initial setup, the hardware wallet generates a backup seed phrase, usually consisting of 12 to 24 words. This seed phrase is crucial for recovering your cryptocurrency holdings in case your hardware wallet is lost, stolen, or damaged.
Best crypto hardware wallets
The best crypto hardware wallets are the ones that offer the best security, ease of use, and support for a wide range of cryptocurrencies. Here are a few of the best crypto hardware wallets on the market:
Trezor
The Trezor is one of the cheapest hardware wallets. It was one of the first on the market but used to be a little cumbersome in its use. This little hardware device had become a lot more sophisticated over time and more user-friendly. It now comes, for example, with a touchscreen, which makes entering your pin code a lot easier.
The Trezor comes with its own software interface that you can open on most browsers. You do not need to download anything, you simply go to Trezor’s website and connect your Trezor to the computer.
Hardware vs software wallet: Hardware wallets are hardware devices used to store your bitcoin private keys offline, such as Trezor. A software wallet is a computer program that sits on your computer or smartphone that allows you to store your bitcoin private keys.
Ledger
Like all hardware wallets, a Ledger is a small device that you hook up to your computer or phone with a USB cable or, in this case, even via Bluetooth. Ledger offers an effortless user interface, and it supports a wide range of cryptocurrencies, including altcoins.
The Ledger also comes with a special app for your phone, and is generally considered as a safe way to store your Bitcoin. It is considered as maybe the easiest and most user-friendly ways compared to other hardware wallets.
KeepKey
KeepKey is a hardware wallet developed by shapeshift.io. This shapeshift is an easy way to trade Bitcoins or other coins with each other. Shapeshift is not considered as a cheap service, but is rather easy.
KeepKey allows you to make trades without having to log in to any cryptocurrency market with more complex interfaces. It works rather easy. It allows you to add a pin code and optional passphrase. There is only one product available, so that makes choosing also a lot easier.
Bitbox
The Bitbox02 is maybe one of the cheapest hardware wallets out there, and is also the most simple wallet. It is the smallest USB device available. It is also built on fully open-source software, which is always preferred above closed source wallets, as those have a track record of getting hacked.
If you are looking for a bitcoin only hardware wallet, Bitbox offers a bitcoin-only version.
Coldcard
The ColdCard is very different to the ones above in terms of how it looks. It basically looks like a bankcard or credit card, but is actually a tiny computer. You do not use USB to connect with it, but Bluetooth. It is easy therefore to connect your phone, tablet or computer with it as long as it has Bluetooth.
Since the Coldcard is like a credit card size device, it is easy to bring with you. However, the device itself is not a piece of plastic, so you cannot bend it as much as a plastic card.
Another different aspect of the Coldcard is that it comes with a number based seed. This is contracy to the word based seeds of other wallets. This may be easier for non-English speakers, but in order to import your seed into a different wallet, you do need to map the numbers with the correct words.
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Do you need a hardware wallet?
To store Bitcoins, you do not need a hardware wallet like all above. Another option is to use a software wallet such as Muun or Samourai and store your private key on your computer or phone. This, however, is considered as less secure.
For a more secure way, you can also choose not to store the private key on the computer and to have a seed or paper backup that you work with. Enter these words each time you use a software wallet, and you’re good to go.
But here you do need to worry about having a backup of this backup. What if your paper trail and seed phrase gets lost? Where is your backup in this case? A hardware wallet makes it easier and more secure to have your private key secure.
All hardware wallets come with their own software. But you don’t have to use their software. In fact, one of the most used software wallets in general is Electrum. Electrum also allows you to use any of the above hardware wallets to securely safe your private key and to manually approve transactions.
Top Hardware Wallets for Cryptocurrency
In this post, we have listed top hardware wallets for cryptocurrency. Crypto hardware wallets are the most secure way to store your cryptocurrency. They store your private keys offline, which makes them much more difficult to hack. Hardware wallets also offer a high level of control over your cryptocurrency, as you need to physically confirm all transactions on the device.
If you are serious about protecting your cryptocurrency, then a hardware wallet is a must-have. Please note, there are other hardware Bitcoin wallets available, such as SatoshiChip. We recommend to only use established wallets that the community approves off. Do not buy random wallets on online shops without proven track records and reviews. Also, do not buy hardware wallets that you cannot be sure they have not been tempered with.
Crypto hardware wallet FAQs
What is a crypto hardware wallet?
A crypto hardware wallet is a physical device that stores your cryptocurrency private keys offline.
How do I store crypto in hardware wallet?
To store crypto in a hardware wallet, you will need to set it up first. When you first set up your hardware wallet, you will need to create a PIN or passphrase to protect your wallet. Once you have set up your hardware wallet, you need to fund it with cryptocurrency. You can do this by sending cryptocurrency from another wallet or exchange to your hardware wallet address.
To find your hardware wallet address, you will need to open your wallet and connect it to your computer. Once your wallet is connected, you will be able to see your address.
Are hardware crypto wallets safe?
Hardware crypto wallets are generally considered to be the safest way to store cryptocurrency. This is because they store your private keys offline, which makes them much more difficult to hack.
Does it cost money to transfer crypto to hardware wallet?
It can cost money to transfer crypto to a hardware wallet. The amount of money you pay will depend on the crypto you are transferring, the network you are using, and the fees charged by your exchange or wallet provider.
Can you stake crypto on a hardware wallet?
You can stake crypto on a hardware wallet. To stake crypto on a hardware wallet, you will need to connect your wallet to a staking service. The staking service will then provide you with instructions on how to stake your cryptocurrency. Once you have staked your cryptocurrency, you will start to earn rewards. However, it is important to note that not all hardware wallets support staking.
What if I lose my crypto hardware wallet?
If you lose your crypto hardware wallet, you will not be able to access your cryptocurrency unless you have your seed phrase. Your seed phrase is a list of words that can be used to restore your wallet. To restore your wallet, you will need to connect your hardware wallet to a computer or mobile device and enter your seed phrase. Once you have entered your seed phrase, your wallet will be restored, and you will be able to access your cryptocurrency.
Can crypto hardware wallets be hacked?
Crypto hardware wallets are generally considered to be very secure, but they can be hacked. The good news is that hacking a hardware wallet is much more difficult than hacking a software wallet.