Which crypto hardware wallet is the best?

Last Updated on August 14, 2022 by aicrypto

You have decided to invest in Bitcoin or another cryptocurrency. You bought the coins on a crypto exchange. But now you are wondering what is the best thing to do with them.

The best and safest step you can take is to transfer your Coins to a secure wallet.

Only with your own wallet you can be sure that your coins will be kept safe. As long as your cryptocurrencies are on a crypto exchange, you have no real control over them. One of the most popular and, most importantly, secure types of wallets is the hardware wallet.

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What is a hardware wallet?

A crypto-wallet is basically comparable to a regular wallet. Since cryptocurrencies are digital, you need to “store” these coins digitally as well. A hardware wallet is a type of USB flash drive where you can store your crypto coins.

Unlike your account at a Bitcoin exchange, a hardware wallet makes it impossible for hackers to get their hands on your coins. This is mainly because the hardware wallet is never connected to the internet.

This wallet will only be turned on when you connect it to your computer. With the help of a special file, you can send your coins and tokens to an exchange like Kucoin or vice versa. Of all crypto wallets, the hardware wallet is the most secure.

Pros and Cons of a hardware wallet

It is highly advisable to store cryptocurrencies that you want to hold for the long term in a hardware wallet. Of course, there are various advantages and disadvantages to doing so, which I will now discuss.

What are the advantages?
  • Secure: a hardware wallet is the most secure way to store your cryptocurrencies (after a paper wallet).
    Offline storage: your private keys are safely stored offline, away from hackers.
  • Anti-virus: With a hardware wallet, you don’t have to worry about viruses and malware.
  • Pin codes: Your hardware wallet is protected by the latest high-tech security measures. As an additional security measure, you need to add a series of words to these security measures to access your cryptocurrencies. This is often used during recovery, for example, if you have lost your pin code or password.
  • Storage of multiple cryptos: In a hardware wallet, you can store different crypto coins and tokens at the same time, not just bitcoins.
What are the disadvantages?
  • Not free: The biggest disadvantage: a hardware wallet is not free. If you use a crypto exchange, you can store your cryptos for free! But it is much less secure.
  • Accessibility: the digital coins you store in a hardware wallet cannot be traded directly. You store them offline and they are not immediately accessible. If you want to sell them, you have to send the crypto coins to a crypto exchange first.
  • Speed: Because your cryptos are less accessible, you lack speed. Do you want to sell crypto coins and tokens quickly as soon as the price drops or rises sharply? If you have them on a hardware wallet, you’re missing out on valuable minutes. Therefore, you should use a hardware wallet mainly for cryptos that you want to hold for the long term.

Is a crypto exchange not secure enough?

Before I go into detail about the different hardware wallets, it’s worth taking a look at why a wallet is so important. The main reason is that it is the only way to keep your coins truly safe.

If you bought your cryptos on an exchange, you have no control over the coins yourself. The so-called private keys of the bitcoins you bought are in the hands of the exchange. Although the exchange often has no malicious intent, it is possible for the exchange to be hacked.

This is not a danger that should be ignored. During the MT GOX hack, for example, hundreds of millions worth of crypto coins were stolen by hackers. People who had their money in the exchange had to forfeit their assets. The problem? All these people did not have their own wallet.

Which hardware wallet is the best?

By now, if you have built a decent crypto portfolio, you want to know which is the best and most secure hardware wallet. You should choose a well-known brand with a good reputation. You shouldn’t be stingy when making such an important decision.

Ledger Nano X – The Ledger Nano X is the second generation of hardware wallets from Ledger. Ledger’s first cryptocurrency wallet, the Ledger Nano S, was one of the first hardware wallets you could buy. Its excellent security and low price make it a good choice. The Nano X looks like a USB flash drive and can be connected to your device via USB or Bluetooth.

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Trezor Model T – Trezor is also a great option. The Trezor Model T is very similar to the Ledger. The only downside is that the Trezor is much more expensive. The Model T uses a touch screen. This is useful for beginners who are not yet familiar with a hardware wallet.

BitBox – The BitBox hardware wallet is developed and optimized in Switzerland. The focus is on security. The wallet supports Bitcoin, Litecoin, Cardano, Ethereum and 1500+ tokens.

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Never buy a used hardware wallet

One very important tip that I must give you is that you should never choose used hardware wallets. There are scammers who place a special file on the device that they can use to hack your wallet. Only with a new device you can be sure that there will be no problems.

Which hardware wallet should I buy?

For me, this is not a difficult question. I have been using a Ledger Nano S for years with satisfaction. The company is well known in the bitcoin world and has gained the trust of the general public.

Of course, I wouldn’t advise you to buy a Nano S. If I were you, I would opt for the big brother Nano X. The Ledger Nano X is a bit more expensive than its little sister, the S. However, you can manage many more cryptocurrencies in the Ledger Live software.