Cryptocurrency investors and traders are always looking for the most secure way to store their digital assets – and that’s why we’ve made this list with the best hardware wallets. They want to store their cryptos without having concerns about security breaches. One of the most secure ways to store cryptocurrencies is through the use of hardware wallets. Hardware wallets guarantee the safety of cryptos based on different layers of security.
Cryptocurrency hardware wallets are physical electronic gadgets that store the private keys of digital currencies in offline settings. These devices are tamper proof. As a hardware wallet holder, you generate private keys alongside digital signatures required to spend your cryptocurrencies via the hardware wallets. Chances of hacking are minimal because the private keys are also offline.
Before settling on any hardware wallet, there are some factors to put into consideration:
The market has various options when it comes to hardware wallets. Therefore, settling on the best wallet can be hard. Here are the three hardware wallet options to consider. We’ve made a small list with the best hardware wallets.
The Ledger Nano S is the most popular hardware wallet supporting multiple cryptocurrencies. Its also our top choice when we talk about the best hardware wallets. The wallet can store popular assets like Bitcoin, Ethereum, Litcoin among others. All assets come with their own private keys. The wallet costs around 79€ when purchased from the ledger official website. After purchasing the Ledger Nano S, the package comes with set up instructions.
The wallet works on any computer, regardless of the operating system. It supports Mac 10.8+, Linux, Windows 7-10, machines. On Windows, it is compatible with Google Chrome. Upon connecting the device to a computer via USB port, download the Google Chrome Ledger manager app to manage the device. By using an OTG cable, you can also use your Ledger wallet on any Android device. To receive cryptocurrencies, the Ledger Nano S doesn’t require connection to a computer. The transaction can happen even when the device is offline.
All assets on The Ledger Nano S are secure thanks to several unique security features. The wallet has a microchip and PIN code to prevent unwanted access to your stored assets. The wallet has two buttons that should be pressed simultaneously to confirm all outgoing transactions. Notably, if the computer has any form of malware, your assets remain safe. Furthermore, all actions are done within the secure component integrated on the microchip. This means that your private keys will remain with you since the ledger servers have no access.
In case your wallet is lost, you can regain control by using the backup phrase from the wallet set up phase. If someone tries to enter a wrong PIN, the device wipes itself locally. The wallet has the OLED display used to confirm payments. This device also boasts of the two-factor authentication at the setup stage.
On the downside, the Ledger Nano S is a bit expensive, unlike other top hardware wallets.
Since joining the market back in 2014, Trezor has gained a reputation as a hardware wallet that offers top-notch security for cryptocurrencies. It offers both virtual and physical protection. Additionally, the Trezor hardware wallet gives users the ability to spend their cryptocurrencies with ease. The wallet which costs $99 is a small, key-sized device that connects to a computer through the USB port. The wallets support cryptos like Bitcoin, Ethereum and Dash where all private keys are offline. Just like the ledger, the Trezor wallet can also work on a computer infected by malware. Its our second best hardware wallet on the list – but frankly the contest was pretty rough.
Trezor users have full control of their funds through private keys. The wallet has a back up of the 24-word seed which is generated using RNG from the device and computer. Note that seed generation is an offline activity which is visible on the Trezor screen. The wallet also comes with a PIN code used for spending funds. As an additional security measure, users can passphrase the 24-word seed. The passphrase is vital in recovering the wallet and you should remember it all the time. Most importantly, you can use another Trezor wallet, or wallets like Electrum or Mycelium to conduct the recovery.
To store your 24-word backup seed, you can use Billfodl, a stainless steel backup solution. The material is fire resistant, waterproof and shockproof. After acquiring your Trezor wallet, setting up is easy. You can set up online through myTREZOR.com. For offline setup, you can use the Chrome extension through an app installed to the browser. In case you are concerned about the privacy, use the Chrome extension. Always remember the set up involves setting up the PIN code.
In terms of privacy, Trezor does not track your actions on the device since there is no serial number. The software is also open source. Furthermore, you don’t need a username or password to use the Trezor wallet.
Keepkey hardware wallet has been around for four years. This Hierarchical Deterministic wallet deploys advanced technology to secure cryptocurrencies. The wallet has the potential of fighting for a top market spot following the recent price cut, meaning that more users will come on board. The wallet which currently retails and $99 is able to support assets like Bitcoin, Ethereum, Litecoin, Dash, Dogecoin and Namecoin.
With the Keepkey wallet, you can generate various private keys to control your stored funds. The wallet is compatible with Windows, Mac and Android operating systems. The wallet has a professionally designed OLED display which makes managing assets much easier. The Keepkey wallets secure your currencies in various ways.
As an HD storage device, your funds are backed up with a 12-word seed generated during the setup stage by default. The words can be extended to 18 and 24. Like other hardware wallets, you don’t require an internet connection to generate the seed. In the event the device is lost, you can recover your funds via the KK Chrome extension. The wallet also has a PIN code support for physical safety purposes. You can also use the PIN to keep hackers at bay in case they want to access your wallet through malware.
Additionally, we have the passphrase. Here, users can opt for an additional word that is attached to the recovery sentence. According to KeepKey, you should only use the passphrase feature if you understand the implications of doing so.
To start using your Keepkey wallet is very easy. All you have to do is download two Chrome applications where one is for generating a wallet and one for connecting to KeepKey through Chrome. After the setup, add an account and select the cryptocurrency you want to add or trade. On the downside, many people still consider Keepkey as a new wallet and this might affect its market growth. The wallet needs to gain a reputation before mass adoption. In conclusion, Keepkey is a great hardware wallet. Its among the best hardware wallets you can own.
Holding cryptocurrencies is all about security. Many investors are not sure about the best option for storing their assets. In this case, hardware wallets should be your number one option for storing cryptocurrencies. With different hardware wallets in the market, research and settle on the one that meets your needs. Notably, the Ledger Nano S and Trezor wallets are more popular for storing digital assets offline. The two wallets have outstanding security feature with a positive market reputation.
The Internet of Things Application (IOTA) is a distributed ledger that was developed to record…
Chainlink is a decentralized blockchain oracle service that acts as middleware that seeks to link…
Image Credit Recent media reports suggest that Cole Diamond, CEO of Canadian crypto exchange Coinsquare,…