Best Hardware Wallets: Secure Cryptocurrency Wallet Comparison

How can I store my Bitcoin, Ethereum, EOS etc. securely?

To protect your cryptocurrencies, there are three options: a paper wallet, a desktop wallet or so-called cryptocurrency hardware wallets. Hardware wallets are considered the best solution for storing and safekeeping, they are easy to use, fast and have the highest security standards currently achievable in the cryptocurrency industry.

Why do I need a crypto hardware wallet?

The golden rule of cryptocurrencies is: by controlling your private keys, you control 100 per cent of your cryptocurrency. You have to keep your private key, your cryptocurrency password, to yourself. You can write your private key on a piece of paper and keep it hidden. This technique is known as a paper wallet or cold wallet. You can also download a desktop wallet. For this you need a lot of space, because you are uploading all the information of the blockchain to your computer. An alternative to these paper methods is a hardware wallet from Ledger, Trezor or KeepKey, which securely stores private keys and keeps cryptocurrencies safe. The device is easy to use, can be taken anywhere and updates automatically. Be careful, keep cryptocurrencies as short as possible on cryptocurrency exchanges! The private key belongs to the exchange, not the user. Despite the convenience and ease, this option should be avoided. With a hardware wallet for cryptocurrencies, you are your own personal bank!

What exactly is a crypto wallet?

A cryptocurrency hardware wallet is a special type of bitcoin wallet that stores private keys on a secure device. It usually takes the form of a USB stick or is equipped with a USB interface. Using this interface, the device can be connected to a computer, laptop, tablet or smartphone. You could say that you store your bitcoins on a USB stick.

Data in text form cannot be transferred or stolen from this medium. Moreover, the wallet is immune to computer viruses that can be installed on your computer. The hardware wallet is an external, independent, secure and interactive environment that never comes into contact with potentially virus-infected software. The hardware wallet software is free and available to all users and is open source.

What is a crypto wallet for bitcoin?

The term cryptocurrency wallet or bitcoin wallet is usually synonymous with a general wallet in which cryptocurrencies can be stored. Hardware wallets do not only store bitcoin, but also many other cryptocurrencies such as Ethereum, IOTA, Cardano, Litecoin, Dash, Bitcoin Cash, Stellar, Ripple and others.

Cryptocurrency wallet testing

We tested the most popular hardware wallets for you. Which is the best cryptocurrency wallet is more a matter of taste. The functionalities, especially in Ledger and Trezor wallets, are very similar. We tested and compared the Trezor and Ledger wallets in the following articles Trezor hardware wallet review.

What should I look out for when purchasing a cryptocurrency hardware wallet?

The most significant attack vector for a hardware wallet would be the installation of third-party software on the terminal, not from the manufacturer. To avoid this scenario, it is important to order directly from the official website of Ledger, Trezor or KeepKey. Never buy a hardware wallet from ebay, ad sites or other online shops. When you receive the goods, also check that everything is in its original packaging.

The packaging is protected by a transparent film. Ledger and Trezor also have a seal. Finally, we can demonstrate how to write a so-called seed phrase ourselves. Seeds usually consist of 12 or 24 words in English, e.g. ‘house’, ‘cat’, ‘girl’, etc. If, when you purchase the wallet, the seeds are already written on the enclosed piece of paper, then something is wrong and you should no longer use this hardware wallet.

Which cryptocurrencies does a hardware cryptocurrency wallet support?

First of all, it depends on the solution used by the company in question (Ledger, Trezor, KeepKey). On the other hand, different models also support different cryptocurrencies. In general, however, it can be assumed that all major cryptocurrencies are supported by all hardware wallets tested. Furthermore, DApps (decentralised applications) based on the Ethereum ERC-20 standard are easy to maintain. For other cryptocurrencies, check with the manufacturer whether the hardware wallet supports IOTA, Cardano, Monero or Verge. As of this year, Ledger supports over 40 cryptocurrencies (+700 DApps) and Trezor supports around 50 cryptocurrencies (+450 DApps).

What happens to my crypto wallet if it is lost or stolen?

We will be the first to tell you: rest assured! Physical access by a third party cannot cause any physical damage unless the person knows the wallet’s 4-8 digit PIN or knows its seed (24 words to recover the device and PIN). If the thief or finder also has his PIN, he should replace access to your cryptocurrency with a seed (recovery) as soon as possible.

It is not necessary to enter a seed into the same device. You can enter via another hardware or desktop wallet that gives access to your cryptocurrencies. If they are still present, marry the cryptocurrencies to other addresses. Meanwhile, you can still create multiple PINs for different accounts. For example, an additional PIN can be added to Bitcoin Wallet 1, Bitcoin Wallet 2, Ethereum Wallet or Ripple Wallet 2, making the device even more secure. In general, hardware wallets are considered the safest way to easily store cryptocurrencies.