Hardware wallets are physical devices that store the private keys for your cryptocurrency and let you manage your transactions. Think of it like a remote lock — but for your crypto. Nothing leaves your hardware wallet unless you authorize the change by clicking a button.
They’re referred to as offline or “cold” storage because they generate and store the wallet's private keys offline.
A hardware wallet offers more security than a software wallet or crypto exchange because the private keys aren't stored in a browser extension or held by a third party (like an exchange).
Ledger and Trezor are the big players in the crypto hardware wallet market, but there are several other capable devices out there. We'll look at some of the best crypto hardware wallets available and examine why each stands out from the pack.
Best Crypto Hardware Wallets
- Ledger Nano S Plus:Best For Storing NFTs
- Trezor Model One:Best For Affordability
- Ledger Nano X:Best For Supported Number Of Tokens
- Ellipal Titan:Best For Security
- SafePal S1:Best For Number Of Supported Blockchains
- Ledger Stax:Best For Wireless Battery Charging
| Ledger Nano S Plus | $79 | Supports up to 100 appsNFT storage | AffordableWorks with the Ledger Live app | No Bluetooth connection | 4.6 |
|---|---|---|---|---|---|
| Trezor Model One | $69 | Supports over 1,000 cryptocurrencies | Affordable | No smartphone app | 4.5 |
| Ledger Nano X | $149 | Supports over 5,500 tokens | Supports Bluetooth connection | More expensive than other Ledger wallets | 4.5 |
| Ellipal Titan | $169 | Has a large colored display making it easy to monitor assets | Supports stakingNFT storage | Pricey | 4.1 |
| SafePal S1 | $50 | Supports 15 languagesSupports over 50 blockchains | Chip has a self-destruct mechanism | Fragile casing | 4.3 |
| Ledger Stax | $279 | Has a curved touchscreenSupports over 5,000 tokens | Touchscreen makes it easy to useSupports wireless charging | Pricey | N/A |
The best hardware wallets include the Ledger Nano S Plus, Ledger Nano X, Trezor Model One, Ellipal Titan, and SafePal S1. Some are relatively affordable, while some are pricey. The more expensive ones tend to have sophisticated features like Bluetooth support and an accompanying mobile app.
Each wallet offers different features and qualities. The SafePal S1 has a self-destruct mechanism that activates if someone tries to dismantle the secure chip element. The Trezor Model One is affordable but has no accompanying iOS app like Ledger wallets.
The best hardware wallets include the Ledger Nano S Plus, Ledger Nano X, Trezor Model One, Ellipal Titan, and SafePal S1. Some are relatively affordable, while some are pricey. The more expensive ones tend to have sophisticated features like Bluetooth support and an accompanying mobile app.
Each wallet offers different features and qualities. The SafePal S1 has a self-destruct mechanism that activates if someone tries to dismantle the secure chip element. The Trezor Model One is affordable but has no accompanying iOS app like Ledger wallets.
1. Ledger Nano S Plus
| Ledger Nano S Plus | $79 | Supports up to 100 apps, NFT storage, etc. | Affordable and works with the Ledger Live app | No Bluetooth connection | 4.6 |
The Ledger Nano S Plus is one of the most affordable hardware wallets, costing just$795,500 tokens. It supports over , but the amount you can hold at a time is limited because it allows a maximum. You can also use it to store non-fungible tokens (NFTs) securely. A major drawback with the Nano S Plus is that you can't connect to a computer using Bluetooth, unlike the higher-end Nano X. The Nano S Plus only supports USB-C connection. Learn more about Ledger wallets.
2. Trezor Model One
| Trezor Model One | $69 | Supports over 1,000 cryptocurrencies | Affordable | No smartphone app | 4.5 |
The Trezor Model One is another wallet that’s very affordable, costing$69. For additional security, they're protected by a user-defined PIN up to 50 digits long. You can pair your wallet with the Trezor Suite mobile app to manage your crypto assets, but it’s only available on Android — no iOS. Like most low-cost wallets, the Trezor Model One doesn’t support Bluetooth connection but only USB-A. Learn more about Trezor wallets.
3. Ledger Nano X
| Ledger Nano X | $149 | Supports over 5,500 tokens | Supports Bluetooth connection | More expensive than other Ledger wallets | 4.5 |
The Ledger Nano X is a sophisticated wallet that’s more expensive than counterparts like the Nano S Plus and Trezor Model One. It comes with both Bluetooth and USB-C support and contains a rechargeable battery. You can connect it to the Ledger Live app on a smartphone or desktop and manage your crypto assets, e.g., buy assets to add to your wallet. The Nano X is a portable and very secure cold wallet but the main drawback is its relatively high price of$149. Learn more about Ledger wallets.
4. Ellipal Titan
| Ellipal Titan | $169 | Has a large colored display making it easy to monitor assets | Supports staking, NFT store, etc. | Pricey | 4.1 |
The Ellipal Titan is a sophisticated wallet that’s even more expensive than the Ledger Nano X. Its defining feature is a large, mobile-like display that makes it easy to keep track of your crypto assets and transactions. Unlike other wallets on this list, the Ellipal Titan is air-gapped, meaning no USB, Bluetooth, NFC, or any other form of external connection. This makes the wallet very secure but inconvenient for regular use.
5. SafePal S1
| SafePal S1 | $50 | Supports 15 languages and over 50 blockchains | Chip has a self-destruct mechanism | Fragile casing | 4.3 |
The SafePal S1 is a low-cost wallet, which is an advantage. But, it's that inexpensive because it comes in a fragile plastic casing instead of metal like the other wallets on this list. This wallet notably has a self-destruct mechanism that activates if it receives a wrong PIN many times or if anyone tampers with the cryptographic chip.
6. Ledger Stax
| Ledger Stax | $279 | Has a curved touchscreen and supports over 5,000 tokens | Touchscreen makes it easy to use and it supports wireless charging | Pricey | — |
Stax is the latest wallet manufactured by Ledger. It’s portable and sports a touchscreen that makes it easy for the user to operate. You can use this wallet to store over5,000 digital tokens and connect it to an external device via Bluetooth or USB-C. Unlike most other wallets, you can recharge the battery of the Ledger Stax wirelessly. You can pre-order this wallet now but it won’t ship until March 2023. Learn more about Ledger wallets.
What Is A Hardware Wallet?
A hardware wallet is a physical device that stores your cryptocurrency offline. The device has specialized firmware to store your private keys so that only you can authorize transactions with it. Hardware wallets usually look like USB drives or have the rectangular shape of typical wallets.
A hardware (cold) wallet is much more secure than a hot wallet. Hot wallets can be accessed via a desktop app, mobile app, or website, but that makes them vulnerable to hacking. No one can tamper with the funds on a hardware wallet unless they get hold of it physically and the wallet’s unique private keys.
Hardware Wallet (Cold Wallet) Vs. Hot Wallet
Hardware Wallet (Cold Wallet)
- Offline storage
- Requires purchase
- Best suited for long-term storage
- You can access your funds only on a single hardware wallet
Hot Wallet
- Online storage
- They’re usually free
- Best suited for regular use
- Can be accessed from multiple devices
How Do Hard Wallets Work?
Hardware wallets allow you to manage your private keys, giving you full control over your crypto assets. They work with multiple blockchains, meaning you can store different types of cryptocurrencies on them. When setting up your hardware wallet, you can generate a recovery key that'll be used to retrieve your assets if you ever forget your password. However, you'll permanently lose your assets if you both lose the wallet and the recovery key, so be careful about storing them.
Hardware wallets don't connect to the internet by default, making it impossible for hackers to steal your funds. But, if you want to spend or swap any crypto asset from the wallet, you’ll need to connect it to the internet via your computer. Any transaction must be signed with a unique private key through what's called a crypto bridge, a piece of software that connects the hardware wallet to a blockchain.
When you connect your wallet to a PC to initiate a transaction, the crypto bridge transfers unsigned transaction data to the wallet, which then signs the transactions using a private key and uploads them back to the bridge, broadcasting to the rest of the blockchain network that the transaction is complete. The private key doesn't leave the hardware wallet at any point during a transaction.
Pros And Cons Of Hard Wallets
Pros
- Very secure
- Can hold hundreds or thousands of cryptocurrencies
- Additional protection using biometric authentication
- Less vulnerable to computer viruses
Cons
- Loss of funds if you misplace both the wallet and your recovery key
- More complex to manage than hot wallets
- Some are expensive
- Inconvenient for day-to-day transactions
The Ledger Recover Rollout
Ledger announced a backup service for select devices. The idea was to encrypt the recovery phrase and split it into three encrypted shards. The shards would then be sent to three different companies, one being Ledger, with each company only having one of the shards.
If you lose your recovery phrase, you'd be able to get it back under the proposed service, assuming you're paid up on your subscription (~$9 month).
The service would require that subscribers provide identification documents as well as a selfie video. It also requires a firmware update to enable the devices to send and receive the shards.
So what happened?
The crypto community didn't like the idea. At all.
- Ledger Recover requires personal identification.
- Ledger Recover also requires a firmware update without any clarity about what else the firmware update enables on Ledger devices.
Ledger's response was to pause the rollout and offer a fair solution.
- Ledger has committed to making the firmware code open-source, allowing the crypto community to evaluate the code and see what it does. (Trezor already does this.) The Ledger Live companion software for Ledger hardware wallets is open source.
When (or if) the Ledger Recover service becomes available, the service is optional, and there's no need to send Ledger any ID documents unless you subscribe.
In the interim, we can back up our recovery phrases the old-fashioned way: write them down and store them securely.
Despite the warranted pushback from the community, Ledger hardware wallets are still among the best crypto wallets available. We'll be on the lookout for that open-source firmware.
To Sum It Up
Hardware wallets are the most secure way to store your crypto assets and avoid losing them, especially in light of the recent bankruptcies of various crypto exchanges.
There’s a popular saying: “Not your keys, not your crypto.” Cold wallets let you control your private keys instead of delegating that work to a third party. Perfect.
The main drawback of using a hardware wallet is that you can lose your crypto assets permanently if you misplace your device. So, be sure to store it securely and safeguard your recovery phrase.
Frequently Asked Questions
Yes, hardware wallets are the most secure way to store your crypto assets.
The Ledger Nano S Plus is the best hardware wallet we recommend because of its relative affordability and ease of use.
A hardware wallet holds the private keys to your crypto assets, giving you full control over them.
You’ll lose your funds permanently if you misplace the hardware wallet.
Cold wallets can’t be hacked directly, but owners can fall victim to social engineering attacks, e.g., phishing, designed to trick them into giving up their private keys.
The cryptographic chip storing the assets on a cold wallet should last between 20 and 30 years.
The Trezor One is an example of a cold wallet.
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