Almost everyone who enters the world of cryptocurrencies does so by creating a software wallet, that is, desktop programs, mobile or online devices, that allow us to store our cryptocurrencies.
But there are other types of wallets, hardware wallets, which are more secure and are often used by long-term investors.
What is a hardware wallet?
A hardware wallet is an external storage device (like a USB stick) that stores the private keys of our cryptocurrencies.
Advantages of hardware wallets
Some of the advantages that these portfolios offer compared to the software ones are:
- The keys are secure as they are not connected to the internet.
- Cryptocurrencies are safe from computer attacks, being stored on hardware devices and not on external servers.
- Transactions must be confirmed manually.
- Its price is relatively low in relation to the security they offer.
How to choose a hardware wallet?
To choose a hardware portfolio you must take into account the following points:
- Security. There are a series of security features that we must take into account, for example, if you use a PIN code, if you have your own screen or, above all, if others have had reported security flaws.
- Compatible currencies. We must make sure that the cryptocurrencies that we have or with which we want to work are compatible with the wallet.
- Backup and restoration. We must check if we can easily make backups and then restore them.
- Usability. Ease of use should be sought, since otherwise, we could lose our cryptocurrencies.
- Price. The available hardware wallets come in a wide price range, so needs and budget need to be evaluated.
Some of the best hardware wallets
1. LEDGER Nano X
We can consider the Ledger Nano X as a next-generation hardware wallet. In addition to being able to manage multiple cryptocurrencies at the same time (something highly sought after), it has a Bluetooth connection, so it is not necessary to use a cable to connect it to a computer or a mobile device.
Some of its characteristics are:
- Dimensions & weight: 72 mm x 18.6 mm x 11.75 mm, 34 g
- Materials: Brushed stainless steel and plastic.
- Battery: 100mAh
- Cryptocurrencies (can be stored at the same time): Bitcoin, Ethereum, Monero, Litecoin, Ripple…
2. Trezor Model T
It is a hardware portfolio with USB connection and a touchscreen that works under the Zero Trust principle, that is, verification is required for everything, adding different security systems to prevent third-party access: protection by PIN (each time you enter it more makes wait twice as long as the previous time), a 24-word recovery seed, communication with the computer is only carried out via USB (therefore there is no possible access via Bluetooth, WiFi, etc.).
Some of its characteristics are:
- Dimensions & weight: 64 mm x 39 mm x 10 mm, 22 g
- Screen: LCD 240x240 pixes.
- Cryptocurrencies (more than 1000): Bitcoin, Ethereum, Monero, Litecoin, Dash
3. Ledger Nano S
The Ledger Nano S hardware wallet is a highly accepted wallet among the public that uses this type of wallet. It has a USB Type B connector and features an OLED display. Its security is based on both a PIN code (if you fail 3 times to enter it, the device is restored) and a 24-word seed to restore the account. In addition its price makes it quite competitive.
Some of its characteristics are:
- Dimensions & weight: 56.95 mm x 17.4 mm x 9.1 mm, 16.2 g
- Materials: Brushed stainless steel and plastic.
- Cryptocurrencies (more than 1300): Bitcoin, Ethereum, XRP, Litecoin...
4. CoolWallet S
CoolWallet S features a different design than other hardware wallets. Similar to a credit target, it can have a multitude of cryptocurrencies, and it also has a screen and a button to confirm transactions.
It is only possible to communicate with this 'card' via Bluetooth and with mobile devices that include the CoolWallet application (iOS and Android). Its security is based on double factor identification (2FA) and biometric authentication as an extra layer of security.
Some of its characteristics are:
- Dimensions & weight: 85.6 mm x 53.98 mm x 0.8 mm, 12 g
- Battery: Charging contact, up to 2 weeks of battery life for 2 transactions per day.
- Cryptocurrencies: BTC, XRP, ETH, LTC, BCH, BNB, Horizen, ICX, stablecoins and ERC20 tokens.
5. BitBox02
BitBox02 is a minimalist style hardware wallet (developed and manufactured in Switzerland) that makes it easy to manage cryptocurrencies. This device includes three touch sensors on its surface that manage contact, pressure and sliding movements, with which to enter the password and navigate when making transactions.
The backups are made on microSD slots, which are managed with a desktop application. It has a USB-C type connector, although it includes adapters for USB-A, and an OLED type screen.
Some of its characteristics are:
- Dimensions & weight: 54.5 mm x 25.4 mm x 9.6 mm, 12 g
- Materials: Polycarbonate.
- Cryptocurrencies (more than 1300): Bitcoin, Ethereum, Litecoin and ERC-20 tokens.
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