The crypto market is at an all-time high, with a market valuation of $4.25 billion on a global scale. Growing with a CAGR of 12.2%, it has served as a great catalyst for the global hardware market for cryptocurrencies like bitcoin, which is poised for expansion to $251 million in the next 8 years. Hardware wallets, as opposed to physical wallets, provide “cold storage” that is kept offline without an internet connection. As in the name, they are physical devices that solely store and transact in cryptocurrencies through a private key. Hardware wallets can work wonders when used appropriately, for there are multiple top-notch wallets in the market designed for a specific demographic of crypto users.
What Is A Hardware Wallet?
Hardware wallets are different devices that function solely for transacting and providing “cold storage” for cryptocurrencies. As opposed to web-based wallets, these devices keep Bitcoin, Ethereum (ETH), and Tether with a unique private key. Software-based crypto wallets are stored online and must be connected to the internet at all times. They offer “hot” storage and make it vulnerable to potential cyber attack vectors. Hardware wallets, therefore, are on the safer end of the spectrum.
However, what most people get wrong is their metaphoric comparison to a physical wallet. Crypto lives on blockchain technology, where users access funds through a private key. As such, they are not stored in the software or physical wallet but use complex combinations of numbers of letters for the public and private keys. To facilitate easier understanding, public keys can be compared to bank account numbers which can be shared without security concerns. Private keys, on the other hand, are the PIN code.
You essentially trust the third party with private keys when storing crypto in a “hot storage” or web-based storage system. Hardware wallets allow users to gain complete control over their private keys with a physical device, giving away all potential hacking threats. Hardware wallets are every security enthusiast’s first choice, for it optimizes and maximizes security against cyber attacks. Private keys are kept offline, allowing users control over their crypto assets.
Moreover, the growing demand for and awareness of cryptocurrencies worldwide has opened up vast opportunities for multiple features and competitive pricing. However, being physical assets, they can be stolen or destroyed and requires a high degree of responsibility. Moreover, it also provides accessibility issues.
Top 5 Brands For Cryptocurrency Hardware Wallets
1. Trezor Model One
On the grounds of multi-trading and security, Trezor hardware wallets take the cake. Trezor is a brand established by SatoshiLabs, specializing in the infamous Model One and Model T wallets. Model One was established in 2013 and used the Hierarchical Deterministic key and BIP32 transfer protocol. The Model One supports over 1000 cryptocurrencies, featuring a display screen and operational buttons. Its distinctive feature, however, is the ability to support android, OSX, windows, and Linux. Giving room for customization, it also supports 3rd party wallet integration with EAL5+ security.
2. Trezor Model T
While on the topic of Trexor flagships, the next on the list is the Trezor Model T, which offers many features that cater to professional multi-crypto holders. It is an innovative release launched in 2019, supporting 1,389 cryptocurrencies and tokens with an HD key and BIP32 transfer protocol. It features an outstanding touchscreen and SD card for data file encryption. It supports Windows, macOS, Linux, and Android. It has a two-factor authentication system through U2F standards. Its outstanding feature is the QR-code support system and EAL5+ security.
Choosing between Trezor T Vs. Trezor One hardware wallets require a detailed and comprehensive analysis of its advantages and features. For instance, Trezor T has an unparalleled supporting system for many cryptos. It also possesses a color touchscreen, upgraded hardware compatibility for USB-C connectors, and MicroSD card slots. While both provide top-notch, sophisticated security against cyber hacks, Trezor Model T is much more advantageous because of broader support and upgraded hardware features. However, they entail the following common features:
- Cold Storage
- Support for ERC20 tokens
- Identical Recovery Seed
- PIN Code
- Address Verification
- U2F two-factor authentication
3. Ledger Nano S
Ledger Nano S provides a comprehensive hardware wallet for storing and transacting BTC, ETH, and LTC. It was launched in 2016 and is highly regarded as the “best overall” due to its high degree of security compared to its competitors. It is feature abundant and caters to both beginners and professional traders. With USB connectivity, an OLED display, and two-way navigation systems, it encompasses over 1100 cryptos and digital assets. It also has a 3 blank seed recovery sheet and synching options through Ledger apps. It uses T31H320 and STM32F042 chips and is EAL5+ secured against penetration.
4. SecuX V20
SecuX is a Taiwanese company that offers mobile-friendly blockchain security advisory and the most secure hardware wallets. It has a disk-shaped 2.8” touchscreen with high-end portability. It can also be connected to web interfaces and can be transacted online. It also operates on QR codes.
Exodus breaks the walls for the novice demographic by providing hardware wallets free of cost. Exodus is a mobile and desktop wallet with a simple user interface and an integrated exchange. The option to shift between an increasing variety of currencies is one of Exodus’ most important features. Exodus presently supports swaps between more than 277 different cryptocurrencies.
Because of its accessibility, this wallet is ideal for newcomers to the cryptocurrency field. It also has excellent support, critical for newbies entering what many consider a perplexing sector. It facilitates cloud and offline “cold storage” facilities with optimal customer support. It encompasses various cryptocurrencies, built-in exchanges, and ease of setting up. However, it is a closed-source software with no support for fiat conversion. Moreover, it is questionable on security grounds as it lacks 2FA security protection.
|Type Of Storage
|Ledger Nano S
|Best For Security
|Trezor Model One
|Best For Multi-trading
|Trezor Model T
|Best For Professional Trading
|Best For Security
|Best For Novice Traders
To answer the question, “Is there a hardware wallet that holds all cryptocurrency?”- yes, there is. In the above list, Trezor Model T supports a broad array of cryptocurrencies compared to other counterparts. Moreover, it is second to none regarding advanced features and security bundles. However, it is always advised to do your research because the crypto market is highly volatile. Make sure to consider the security aspects and whether the storage is open or closed source. Wallet fees, supported currencies, user-accessibility, and integration aspects must be considered before making the purchase.