The number of hacker attacks on cryptocurrency exchanges is growing. Crypto assets theft statistics for 2022 is the best argument for comparing the degree of security of storing coins on your own wallet and on the accounts of centralized services.
In addition, a crypto wallet is much more convenient in terms of managing funds. When transferring, the user pays only the blockchain commission. Among the many ways to organize the storage of cryptocurrencies, there are optimal solutions for each user.
Benefits of hardware wallets
None of the storage methods can be called the only correct and mandatory one. Hardware wallets are no exception, many people have successfully stored very large amounts in software wallets for years. And yet there is a risk that once the streak of luck will suddenly end.
A hardware wallet provides the highest degree of security available today compared to software storages and, even more so, to web services.
A device that connects to the Internet infrequently and briefly is very difficult to track and hack. Also, the lack of a permanent connection increases security from malware. This is not the only advantage of hardware devices, in addition to high security, they:
- Provide full control of their funds.
- Release the need to trust funds to third-party applications and services.
- They make it possible to carry the device with you or vice versa, store it in a sufficiently protected place.
Hardware devices are not free and cost is often the main argument against using them. Another common disadvantage is the need to connect to the network to complete the transaction, for example swap DASH to BTC on LetsExchange. This does not make life much more difficult if all your actions with the device are limited to quarterly revisions of the crypto portfolio, but it is inconvenient for everyday work.
Best hardware wallets for 2023
Ledger Nano
The devices support more than 1800 coins, and at the request of the community, the manufacturer regularly adds new ones. Using the Ledger Live platform, you can selectively install software for specific assets. Another strength of Ledger devices is compatibility with many software repositories.
The most popular models are Ledger Nano S and Ledger Nano X.
The Nano X uses Bluetooth and USB-C connections to connect to internet-enabled devices. It has more storage and costs about twice as much as the Nano S.
Trezor
In terms of cost, specifications and the number of supported assets, Trezor devices are almost on par with their closest competitors. The most noticeable external difference is a fairly large display, which is important for many users. The devices are connected to the phone and PC only via the USB-C connector
For asset management, the native Trezor Suite application is provided, in addition to this device, it is compatible with many other software crypto wallets.
The most popular Trezor models are Model T and Model One. The Trezor Model T is also about twice the price of the Model One.
Ellipal Titan
The device supports more than 10,000 crypto assets. It differs from most competitors by supporting the air gap. It is completely isolated from external networks and uses QR codes to communicate with the blockchain. When an unauthorized intrusion is attempted, the self-destruct system is triggered and all information is erased from the device.
SafePal
SafePal is relatively inexpensive, but the device has a fairly rich functionality. To interact with the blockchain, you will need to install the application on your phone, as it is performed using QR codes. SafePal has a large screen, supports over 10,000 cryptocurrencies and works with NFT tokens.
Coolwallet
Coolwallet produces rather expensive and very convenient devices. Outwardly, it resembles an ordinary bank card and fits into any cardholder. Coolwallet Pro supports about 60 cryptocurrencies and tokens based on the Ethereum, Tron and Binance Smart Chain blockchains.
Conclusion
The ideal wallet is a rather abstract and rather individual concept. The idea of it is formed based on personal experience, the amount of coins, the purpose of storage and other factors that are not always obvious, but important for a crypto investor. For active traders, this will most likely be hot storage in the desktop or mobile version, browser extensions are considered the most convenient from the point of view of DeFi investors. Hardware devices are recommended primarily for long-term investors and those who have already accumulated a large amount of cryptocurrency.
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