Pick the best cold wallet and take advantage of the endless opportunities offered by this space while keeping your assets secure.
What Is a Crypto Wallet?
Unlike a traditional wallet, which mostly carries physical items like cash, bank cards and other items, crypto wallets act as the storage for your cryptocurrencies.
Your digital assets are stored on the blockchain, and only a unique private key can help you access them. This private key is a representation of your ownership to the cryptocurrencies that are present in that digital wallet. Keeping your private keys safe is extremely important as losing access to it will cause you to lose your currencies present inside that wallet.
Crypto wallets mainly exists in two forms: hardware wallets, or cold wallets, that could look like a USB stick, and software wallets, or hot wallets, that are connected to the internet, such as MetaMask.
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What Is a Crypto Cold Wallet?
A crypto cold wallet, also known as cold storage, is a type of cryptocurrency wallet that securely stores your private keys offline, usually on a physical device, to protect them from unauthorized access. Cold wallets are considered more secure than hot wallets, which are connected to the internet. They are typically hardware devices that can look like a USB drive or other physical gadget.
Importance of a Crypto Wallet
Cryptocurrency wallets are considered the safest option for crypto holders to self-custody — one of the core tenets of decentralization.
Self-custody is important for crypto because it allows individuals to have full control over their digital assets and avoid the risks associated with storing crypto on a centralized exchange (CEX) or platform. When users store their crypto assets on a centralized platform, they are trusting the third party to keep your crypto assets safe at all times. However, the past year has shown that that might not be the case — as seen in the bankruptcy of FTX, Celsius, Voyager and more.
Owning your crypto private keys through self-custody allows you to store, send and receive crypto without needing anyone else's permission. It also protects you from potential hacking or theft of your assets from the exchange
By demanding complex passwords as well as employing other safety precautions, such as two-factor authentication (2FA), these systems make sure that the holder of cryptocurrencies and blockchain assets is the only individual with access to the funds.
Ledger Controversy
Ledger, one of the most popular cold wallet solution, has received criticism over its new, opt-in “Ledger Recover” feature, which allows users to store encrypted seed phrases with third-party custodians. The feature is an optional, $9.99-per-month recovery service that offers a way for people to secure their seed phrases without worrying about losing a slip of paper. The private key is encrypted and divided into three fragments, with each fragment secured by a separate company, including Ledger, Coincover, and an independent backup service provider.
However, some members of the crypto community have expressed concern that splitting the encrypted key to third parties could leave it vulnerable, thus undermining the entire purpose of a hardware wallet. Additionally, users are required to provide a government-issued ID to the company should they wish to use the service, which some argue violates core crypto values around privacy.
Critics also brought up Ledger's security record, citing a 2020 data breach that exposed the emails of nearly 10,000 customers. While no wallets were compromised, the incident brought to question the firm's security practices.
Difference Between Cold Wallets and Hot Wallets
Hot wallets don't need to switch between offline and online modes to execute a transaction because they are online all the time. Investors holding a large among of coins are not advised to retain their assets in hot wallets.
On the other hand, cold wallets are specially built devices used to store various cryptocurrencies in physical form. One of the most significant advantages of cold wallets is that the private keys are stored offline in a much more secure environment. These wallets are often tiny and compact, allowing for ease and discretion.
Most Popular Crypto Cold Wallets
Despite the recent controversy, let's dive into some of the most popular cold wallets currently in the market, in no particular order.
Do note that the wallets mentioned below are by no means an endorsement. Users are recommended to research further before purchasing and storing their crypto assets in a hardware wallet.
Ledger Nano X
Current Price: $149
Ledger's 2nd generation cold storage wallet is known as the Nano X. More than 5,500 currencies and tokens, including Bitcoin, Ethereum and Cardano, are supported via the integrated Ledger Live platform, which is simple to understand and use. Support for additional cryptocurrencies is added on the Ledger Live platform at the request of the crypto community each year. A USB cable connects the wallet to your computer, and the Bluetooth technology connects it to Android and iOS mobile devices, a unique feature not present in many cryptocurrency cold wallets.
The Ledger Live software is directly integrated into the Nano X cold hardware wallet, as it helps users manage all their cryptocurrencies through its easy-to-use user interface. It allows them to manage their holdings and add additional wallets for different cryptocurrencies to their gadgets. It includes a 1 USB-C to USB-A connection, which can be used to link it to a desktop computer or a smartphone instead of using Bluetooth.
Trezor Model T
Current Price: $219
Trezor Model T is the 2nd generation of hardware wallets, similar to the Ledger, but with an additional capability to allow its users access to third-party exchanges, such as Changelly and CoinSwitch, instantly from the Trezor internet interface. Trezor Model T has a touch screen, which makes it easier for newer cryptocurrency wallet users to operate than the previous model which had two push buttons. The Trezor also features a MicroSD card port, which allows you to encrypt the PIN and secure your device from cyberattacks.
Exclusive security features include the Shamir Backup, which can establish up to 16 shares that are used to recover coins if something goes wrong with your device.
The addition of in-wallet exchanges is another useful feature. You can use them to buy cryptocurrency with fiat currency and convert from one cryptocurrency to another, all within Trezor. The method of sending and receiving crypto is simple. To add an extra layer of protection, go to the Receive tab and establish a receive address in the app that you'll have to confirm on the Trezor Model T.
You can also use the Trezor's QR button to see the address's QR code, which your sender can scan to start the transfer. Payment will be listed under the Transaction page as soon as it is processed.
CoolWallet Pro
Current Price: $149
CoolWallet Pro is a new DeFi-focused mobile hardware wallet released in May 2021. It has the form factor of a credit card, with enhanced security and encrypted Bluetooth communication that keep crypto-assets safe inside your actual wallet with full access to a wide range of decentralized finance features. It comes with an eye-catching e-ink screen to visually check data first, and a sunken button to physically confirm all transactions.
This cold storage device comes with enhanced, multi-layer cold storage security through its EAL6+ secure element (SE), various biometric in-app verifications, AES256 encrypted Bluetooth Low Energy (BLE), and five processors to control its SE, MCU, e-Ink driver, Power Management and BLE.
The CoolWallet Pro's secure element (SE) supports the ECDSA transaction signing algorithm and uses a true random number generator (RNG) as well as a hardware crypto accelerator.
It utilizes BIP-32 (HD wallet), BIP-44 (multi-coin and address support), and BIP-39 (seed creation and wallet recovery mnemonic) and supports signing with multiple algorithms, including ECDSA (secp256k1), SHA256, ripemd160, RLP, Base32, Ed25519, Hmac, Ripemd, SHA1, SHA512, SHA3_256, SHA3_512, keccak_256, and keccak_512.
The CoolWallet's laminated exterior is bonded with thin flexible printed circuits, and components through a patented cold compression process to ensure it remains tamper-free and water-resistant. Its lithium-ion battery provides a single battery charge that lasts several weeks.
CoolWallet Pro, the third in the CoolWallet series dating back to 2016, caters to DeFi users who want to put their assets to work on PoS (Proof-of-Stake) networks through staking protocols. In addition to its existing portfolio (BTC/ETH/USDT/LTC/XRP/ERC20/BNB and more), the Pro offers native support for Polkadot (DOT), Cosmos (ATOM), Tron (TRX) and TRC20 tokens, BNB Smart Chain's BEP-20 assets, ETH, Cardano (ADA) and NFTs.
Ledger Nano S Plus
Current Price: $79
The Ledger Nano S Plus is considered by many the best value option for those looking for a hardware wallet, as it offers similar security and features to the Ledger Nano X but at a significantly lower price. It supports cold storage for over 5,500 crypto coins, tokens and NFTs, and enables staking and crypto exchange features through Ledger Live.
For users that don't require Bluetooth functionality and are satisfied with offline storage of your private keys, then the Ledger Nano S Plus is an excellent choice that meets many requirements.
KeepKey
Current Price: $79
KeepKey is a pen-drive form of a hardware wallet that uses the same offline, cold-storage technique for your public and private keys, as well as a backup seed phrase if your KeepKey is lost or damaged.
KeepKey was created to operate in tandem with the ShapeShift currency exchange platform, making it simple to safely trade multiple currencies. KeepKey's software is completely open-source, and you can also check it on GitHub to cross-verify it.
KeepKey is a hardware wallet with some impressive security features. It is protected by a personalized pin code of your choice, which makes it secure against physical theft.
The hardware wallet is significantly larger than other well-known crypto wallets, however, it doesn’t hinder the usage mechanism. It is simple to set it up and transact digital assets.
Ellipal Titan
Current Price: $169
Ellipal Titan is well-known for its air-gapped hardware wallet security. What’s unique about Ellipal hardware wallet is that it is isolated physically, electromagnetically, and electrically from all other networks when it is in an air-gapped state.
Ellipal Titan includes a 4-inch color touch screen that makes it simple to set up and monitor all the real-time transactions.
While other hardware wallets utilize USB or Bluetooth to sign transactions, Ellipal Titan's Ellipal app simply uses QR codes. In reality, the Ellipal Titan circuit board was designed to prevent all physical connections, including Wifi, Bluetooth, and cellular. It safeguards your device from both online and offline attacks, thanks to its anti-tamper self-destruct feature. It will destroy all information (private keys) contained in it within if it senses a forced intrusion. Of course, you always have the recovery seed to recover your coins if something goes wrong.
Safepal S1
Current Price: $49.99
The SafePal S1 Hardware Wallet was launched back in 2019. It supports 54 blockchains and most of the popular crypto coins and tokens, including non-fungible tokens (NFTs).
SafePal is a cutting-edge wallet that aims to give crypto customers a safe, simple, and easy-to-use crypto management solution. To assist it to reach this objective, it has incorporated several operational and security elements, including recovery seed, two-factor authentication (2FA), pin code, key-deletion pool, that make it a relatively safer option than most hardware wallets out there.
The SafePal S1 hardware wallet features a minimalist appearance that resembles an MP3 player. It has a rather large color screen, a QR code scanner, and a D-pad controller for navigating the wallet.
The SafePal hardware wallet's creators have also created a SafePal wallet software, which you can use to monitor your cryptocurrency balance and perform cryptocurrency transactions.
SafePal S1 features a simple onboarding procedure, despite its size. It is easier to interact with the crypto vault and receive and send cryptos, thanks to the large display screen and the readily accessible mobile wallet app interface.
To protect the integrity of the SafePal S1 hardware wallet and the private keys stored on it, the creators have taken several effective security and privacy measures, some of which are two unique seals on tamper-proof packaging, in addition to two-factor authentication, offline wallet address creation, a six-digit passcode for the hardware device, and a password plus pattern for the SafePal S1 mobile wallet software.
SecuX V20
Current Price: $139
The SecuX V20 is one of SecuX's most popular hardware wallets. The gadget includes a big color touch screen display and a battery for offline/disconnected operation and connects to the host by USB or Bluetooth. It boasts a CC EAL5+ certified secure element chip from Infineon. The SecuX V20 can go totally wireless, thanks to its low-energy Bluetooth connection, which is built on AES-256 technology for optimum data protection. This gadget is safe to use on mobile phones.
You can also use the SecuX V20 as an online wallet. It comes with a USB data cable for this purpose. The wallet is cross-platform compatible, meaning it can be used on a desktop PC, laptop, iPhone, iPad, Android smartphone, tablet, or Chromebook.
The SecuX V20 wallet has a 6000mAH battery that lasts for about seven hours and can be fully recharged in under two hours. The QR code functionality in the SecuX V20 wallet allows for simple fund transfers and transactions from your mobile wallet. The SecuX V20 has a 2.8-inch touchscreen on which crypto users can manage their transactions in real-time. The device has a sleek diamond-shaped design with a brushed metal backside and rubber cushioning that makes it durable.
Keystone Pro
Current Price: $169
The Keystone Pro (previously known as Cobo Vault Pro) is a cryptocurrency hardware wallet that is completely air-gapped and comes with a four-inch touchscreen, open-source firmware with a fingerprint sensor, and PSBT Bitcoin multisig support to additional security from malicious attacks.
Keystone is a hierarchical deterministic HD hardware wallet that is BIP 32/39/44 compliant. By integrating QR codes to sign transactions, Keystone has decreased the risk of malware intrusion and enhanced visibility. Due to this feature, the Keystone Pro is completely air-gapped.
The Keystone Pro’s wallet batteries are detachable to avoid corrosion, and both the Essential and Pro versions are AAA battery compatible, so you won't have to worry about battery failure at all. Keystone Pro also comes with a rechargeable battery.
Note: The Keystone Pro hardware wallet is completely air-gapped which means that connecting to blockchain networks necessitates the use of additional software.
Which One Is the Best Cold Wallet?
This is a difficult question to answer as it boils down to the many features, including the level of protection offered by the device. In general, a good hardware wallet should be easy-to-use, compatible with different devices, driven by security measures like two-factor authentication. Some other factors include the support system and reliability of the manufacturer. It is a good practice to understand your needs and preferences, and do your own research before going for a cold wallet.
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