Safety is considered one of the most important problem in the cryptocurrency world. Since crypto assets are digital, the methods of safeguarding the assets must be digital also. Similar to physical wallet which stores paper currency, a digital wallet is developed to store cryptocurrencies. However, unlike physical wallets, which can hold any currency as long as it’s paper, a cryptocurrency wallet cannot store all cryptocurrencies.

Each crypto wallet has its own unique range of cryptocurrencies it is compatible with. This is one thing to notice: if we send a cryptocurrency to the wrong wallet, the amount sent will be lost for good.

There are 5 different types of cryptocurrency wallets. Aside from hardware wallets, there are web wallets (e.g. MyEtherWallet and Metamask), mobile wallets (e.g. Jaxx, Coinomi, Mycelium, Bread), desktop wallets (e.g. Exodus, Atomic wallet), and paper wallets (which are basically a printout of the wallet address and private key).

Why Hardware/Cold Wallet Is a Good Choice

Hardware wallets, or “cold wallets”, store crypto assets offline and literally put it in the hands of the owners. Hence, they offer the best method of safeguarding cryptocurrencies.

Other wallet types are vulnerable to hacking, phishing, and damage which can easily harm your funds. While people might choose other wallet types for cryptocurrencies they move or trade frequently, hardware wallets are ideal for long-term storage. Hardware wallets are devices built to store users’ private keys securely. Most look like a USB drive and can be accessed via desktop apps.

There are several hardware wallets available today. Arranged in no particular order, here are the top 3 cold wallets to safely store your cryptocurrencies.

Top 3 Hardware Wallets for Storing Cryptocurrencies

Ledger Nano S

The Ledger Nano S is a USB-sized device with a metal casing for heightened durability. The design is simple and compact, and it has a very easy-to-use interface. The device works through Ledger Live, a desktop app that allows interaction with the device.

The Ledger Nano S supports over 1,000 coins and tokens, including Bitcoin, Ethereum, Ethereum Classic, Litecoin, Ripple, Dogecoin, Zcash, Dash, as well as many ERC-20 tokens. It can interact with online wallets such as MyEtherWallet, Mycelium, and Electrum.

The Ledger Nano S is very secure from hackers because the physical buttons that have to be used for any transaction to be carried out, and it has an anti-tamper proof feature which checks the integrity of the hardware wallet every time it is powered on.

Ledger, the founder company has been around since 2014. They use an open-source code and have shown stability despite the wide swings of the crypto market.

The current price of Ledger Nano S is about US$99.99.

Trezor Model T

Developed by SatoshiLabs, Trezor One was designed to store multiple cryptocurrencies offline in an easy-to-use format with 2 buttons and a screen. While the Trezor One is already comparable with the Ledger Nano S, the Model T is designed to be more secure with PIN entry, passphrase entry, and device recovery carried out on the device (and not on a computer or mobile).

The Trezor Model T comes with a magnetic dock (for definite safekeeping). It also has a seal that makes you know if the device has been compromised. The Model T supports over 700 coins, with notable absentees being EOS and Tron. The Model T supports Ripple (its predecessor didn’t) but has no active wallet yet for it.

The Trezor Model T is currently valued at about US$170.

Keepkey

Launched in 2015, Keepkey is different in form and slightly larger than Trezor and Ledger (as can be seen above). Keepkey is a Hierarchical Deterministic (HD) wallet, which makes it optimal for generating and storing an unlimited number of keys.

Keepkey supports 54 coins, which includes Bitcoin, Ethereum, Litecoin, Dash, Dogecoin, Bitcoin Gold and several ERC-20 tokens. The wallet has a desktop client app which is used to interface with the wallet. The wallet has a large screen and requires no technical knowledge to use.

The hardware wallet is currently priced at $129 and considered suitable for novices or people who may be careless with a USB-sized hardware wallet.

Conclusion

When cryptocurrencies are purchased for the long term, it is important to store them properly.

Cold wallets are the best way to store them this way, with the least risk of your account being compromised by a third party. Each cold wallet comes with its own advantages and peculiarities, hence the importance of choosing the one that best fits the desires of the user.

The hardware wallets discussed above has an established user base, and they are generally living up to their design expectations. If you have a substantial amount of cryptocurrencies that you do not transact with frequently, it is prudent that you get at least one of the mentioned hardware wallets.