This article features the 10 best crypto hardware wallets in 2023. If you’re only interested in the top 5, feel free to skip our in-depth analysis and jump straight to the 5 Best Crypto Hardware Wallets in 2023.
As cryptocurrencies continue to gain popularity, ensuring the security of digital assets has become an increasingly important concern. Crypto wallets are digital tools used to store and manage digital assets, and they play a critical role in safeguarding against cyber threats.
With the wide variety of wallets available on the market, choosing the right one can be tricky. In this article, we will discuss the importance of crypto security, the difference between hot and cold storage, the key factors to consider when choosing a hardware wallet, and the best crypto hardware wallets available.
The Growing Importance Of Crypto Security
Cryptocurrencies function in a decentralized manner, operating independently from banks and governments. While this independence provides freedom, it makes cryptocurrencies more vulnerable to cyber-attacks and fraudulent activities.
Consequently, ensuring the security of crypto assets has become a crucial concern for industry professionals and users alike. According to Forbes, with the number of hacking incidents on the rise, the losses due to crypto hacks and breaches have already surpassed $2 billion, and they are projected to set another all-time high.
As stated by the World Economic Forum, the use of cryptocurrencies for criminal activities, including ransomware, scams, and terrorism financing, has led to a total loss of $14 billion in 2021, representing a 79% surge from 2020. Thus, it is vital to ensure sufficient crypto security to avoid such severe repercussions.
Crypto hardware wallets can be seen as a viable solution to most security issues. These wallets offer a secure way to store private keys using cold storage and provide additional protection against hacking attempts. Since the private keys are kept offline, these wallets provide a safe way to store and manage digital assets, making them a preferred choice among cryptocurrency enthusiasts.
Crypto Wallets: Hot Vs. Cold Storage
The rise in cryptocurrency theft is a concerning trend. According to Chainalysis, “2022 was the biggest year ever for crypto hacking, with $3.8 billion stolen from cryptocurrency businesses”.
Crypto wallets can play a critical role in this regard, offering an offline storage solution that is less vulnerable to attacks from hackers and malware. Regarding crypto wallets, there are two main types of storage: hot and cold. Hot wallets are connected to the internet, making them more prone to cyber-attacks and other security threats. In contrast, cold storage wallets are kept offline, providing a higher level of security against such vulnerabilities.
Hot wallets are typically used for convenience and accessibility, allowing users to quickly access their cryptocurrency holdings from anywhere at any time. However, the trade-off for this convenience is a higher risk of theft or hacking, as hot wallets are connected to the internet and are more vulnerable to cyber-attacks.
On the other hand, cold storage wallets provide a more secure option for storing digital assets, as they are kept offline and away from potential threats. It makes them ideal for the long-term storage of cryptocurrency investments or for individuals and businesses requiring higher security for their digital assets.
Freezing Out Hackers: Why Cold Storage is the Hottest Trend in Crypto Security
The benefits of cold storage crypto include the following:
- Enhanced security: Cold storage provides extra protection to your cryptocurrency by keeping it offline and inaccessible to hackers and other cyber threats.
- Protection against hardware failure: In case of hardware failure, cold storage protects your cryptocurrency. Since your cryptocurrency is stored offline, it is not affected by any physical damage that may occur to your hardware wallet or other storage devices.
- Privacy: Cold storage ensures that your personal information and transaction history are not stored online where hackers or other third parties can potentially access them.
- Peace of mind: With cold storage, you can know your cryptocurrency is safe and secure, even if you are not actively using it.
- Long-term storage: For the long-term storage of cryptocurrency, cold storage is quite handy. You can store your cryptocurrency for years without worrying about online threats or the need for constant monitoring.
The Role of Public and Private Keys in Crypto Wallets
Public and private keys play an important role in securing these transactions. The public key is a unique digital address used to receive funds, while the private key is a secret code that enables users to access and control their funds. These keys work together in a cryptographic system to ensure the integrity and security of the user’s transactions.
Types of Crypto Hardware Wallets
Crypto hardware wallets come in various forms, including USB drives, smart cards, and other forms of hardware. USB-based wallets are among the most popular types of hardware wallets, offering high level of security while being easy to use. Smart cards are another highly secure and portable hardware wallets, making them ideal for travelers. Other hardware wallets include mobile devices, paper wallets, and even brain wallets that rely on users’ memory.
Key Factors to Consider When Choosing a Crypto Hardware Wallet
When choosing a crypto hardware wallet, several factors should be considered. These factors include:
- Security Measures
- Compatibility with Platforms and Devices
- Usability
- Transaction Fees
- Support and Resources
- Currency Support
- Design and Interface
Users should also look for wallets that offer two-factor authentication and support multi-signature transactions for added security.
Recent Advances and Trends in Crypto Wallet Technology
Recent advances in crypto wallet technology have focused on improving security and usability. One trend is using biometric authentication, such as fingerprint or facial recognition, to replace passwords. Another is the development of decentralized wallets that allow users to retain control over their private keys while providing seamless integration with decentralized finance (DeFi) protocols.
DeFi caters to a diverse group of users. Forbes reports that DeFi provides much-needed financial services for the 2 billion unbanked individuals worldwide. Others find it convenient as transactions settle much faster, taking only seconds or minutes compared to days for traditional banking systems.
Furthermore, using DeFi eliminates the need to involve a bank when sending or borrowing funds. Some users prefer self-custodied digital assets on a blockchain, due to their peer-to-peer operation, providing unrestricted access without limitations imposed by banks or national capital controls.
Future Outlook for Crypto Wallets: Opportunities and Challenges
The future of crypto wallets seems bright, with the increasing adoption of cryptocurrencies and the emergence of new DeFi protocols. However, there are also challenges to overcome, including the need for greater interoperability between different blockchains and wallets and better user education to ensure that users understand the importance of securing their private keys.
The involvement of giant corporations such as International Business Machines Corporation (NYSE:IBM), Microsoft Corporation (NASDAQ:MSFT) and PayPal Holdings, Inc. (NASDAQ:PYPL), within the cryptocurrency industry can contribute to a promising future outlook for digital asset security, as they have been exploring ways to leverage blockchain and cryptocurrency technologies in their businesses.
International Business Machines Corporation (NYSE:IBM) has created the IBM Blockchain platform, which allows businesses to construct and launch blockchain networks, applications, and smart contracts. Moreover, International Business Machines Corporation (NYSE:IBM) has contributed to various blockchain-based initiatives, including supply chain management, identity verification, and digital asset management.
Microsoft Corporation (NASDAQ:MSFT) has been exploring various ways to leverage blockchain and cryptocurrency technologies to improve its products and services, and support the crypto industry’s growth. Some of Microsoft Corporation (NASDAQ:MSFT)’s initiatives include developing blockchain-based solutions using its Azure cloud platform, and a built-in crypto wallet is reportedly being tested by Microsoft Edge, as reported by CryptoSlate.
PayPal Holdings, Inc. (NASDAQ:PYPL) has recently entered the cryptocurrency market by allowing its customers to buy, hold, and sell cryptocurrencies like Bitcoin, Ethereum, Litecoin, and Bitcoin Cash directly through their accounts. So, users can now use their PayPal Holdings, Inc. (NASDAQ:PYPL) balance to purchase cryptocurrency and use it to purchase from the millions of merchants that accept them.
As several mega-corporations are contributing to the growth and adoption of cryptocurrencies and blockchain technology, a positive impact is expected for crypto security and various industries in the future.
Let’s now move to the 10 best crypto hardware wallets in 2023.
Pixabay/Public Domain
Methodology
Our methodology for identifying the best crypto hardware wallets in 2023 considers factors such as security, user-friendliness, multi-currency support, cost-effectiveness, and durability, based on user preferences for advanced features like offline storage, clear instructions, and intuitive interface.
We considered feedback from users on social media platforms, including Reddit and Quora, and reviews from reputable sources like Investopedia, Forbes, CadaNews, and Finder. These sources have identified Ledger as a popular choice, and our evaluation process is based on the factors and reviews outlined from these reliable sources.
10. NGRAVE ZERO
NGRAVE ZERO is a secure cold wallet with QR codes for transaction signing. The device operates without external connectivity, which enhances its security against digital attacks. To sign transactions, users must scan QR codes generated by the NGRAVE Liquid app. The wallet also features biometric security, incorporating a fingerprint scanner.
Apart from its high-end security features, the NGRAVE ZERO boasts a large 4-inch touchscreen, which provides a user-friendly interface. The wallet supports 13 blockchain networks, making it versatile and accommodating to different cryptocurrencies.
9. SecuX V20
The SecuX V20 is one of the best crypto hardware wallets in 2023. It is a secure device with a 2.8″ touchscreen interface, a Secure Element chip, and a single USB port. SecuX V20 offers cross-platform support and is compatible with various operating systems and devices.
The device has many advantages, such as supporting multiple signatures and passphrases, encrypted bluetooth support, and compatibility with all major desktop and mobile platforms.
8. Cool Wallet Pro
The CoolWallet Pro is a top-tier hardware wallet that offers an array of impressive features. This device lets users conveniently track, view, and exchange their cryptocurrency from a cold storage wallet. The device also supports in-app NFT trading functions and allows users to earn rewards.
The ability to stake your cryptocurrency is one of the standout features of this device, making it one of the best hardware wallets for staking. CoolWallet Pro boasts a compact and portable design which resembles a credit card, making it easy to carry around. The device is waterproof and heat-resistant, ensuring your cryptocurrency is always safe and secure.
7. BitBox02
The BitBox02 is a premium hardware wallet made in Switzerland, designed to support a wide range of devices such as Windows, Linux, and Mac, as well as Android devices using a USB-C connector. With support for Bitcoin, Litecoin, Ethereum, and all ERC20 tokens, this device looks and operates like a USB device, eliminating the need for additional equipment.
While backup with a recovery phrase is possible, the BitBox02 comes with a microSD card for instant backup and recovery, making it incredibly convenient for users. Moreover, the device boasts a dual-chip design, offering an extremely high level of security.
6. KeepKey
The KeepKey hardware wallet stands out for its convenient user interface, which features a big screen and a tactile button on the device’s top. While incorporating a touch screen would be an excellent addition, the current large display makes confirming transactions effortless.
One advantage of the KeepKey wallet is that it lacks an operating system, making it impervious to malware and viruses. The device generates a 12-word code that can recover lost or stolen Bitcoin. It supports over 2,534 assets, which may make it an attractive option for investors content with a basic feature set.
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Disclosure: none. 10 Best Crypto Hardware Wallets In 2023 is originally published on Insider Monkey.