Almost 5 million Bitcoins are presumably lost because of thievery, abandoned private keys and foul-ups. Those examples are very illustrative: getting digital coins is only half the success. It is equally important to choose the most appropriate cryptocurrency wallet to store them.
As the cryptocurrency ecosystem and services are actively evolving, users are offered a variety of crypto wallets to secure their digital funds.
In this blog post, Safello will describe the key characteristics of different cryptocurrency wallets and explain why we recommend using hardware wallets.
Before making a decision on where to store your Bitcoins, it is important to understand particular features of each cryptocurrency wallet. All wallets can theoretically be divided into two groups: software and hardware. Software wallets (cloud-, mobile- or exchange-based) require Internet access in order to be managed. Hardware wallets (paper, USB or real-world items, such as Casascius coins) offer offline storing options which allow receiving and sending digital funds. Most traders store their cryptocurrencies on both types of wallets which can also be a good security strategy.
Crypto hardware wallets are gadgets designed to store and protect private keys. They are often considered to be the most reliable option for storing crypto assets, because you are only requested to keep your keys on the hardware device. Given that your keys do not interact directly with your PC, they are not exposed to hacking.
Safello recommends using Ledger, Trezor, KeepKey and BitBox as some of the most reliable and established hardware wallets on the market.
As one of the most trustworthy wallets for storing cryptocurrencies, Ledger Nano is designed as a USB device that supports over 700 digital assets, from the prestigious ones like Bitcoin, Ethereum and Ripple to the less known tokens and altcoins. This multi-cryptocurrency wallet offers advanced security features that protect Bitcoins from various risks. Just like many other Bitcoin hardware wallets, Ledger’s price varies from 699 SEK to 2000 SEK per device.
Trezor is a USB-sized hardware wallet that backs almost a thousand digital coins (!) such as Bitcoin, Litecoin, Ethereum (+all ERC20 coins) and many others. With an intuitive interface and simplified design, the wallet also has an additional security layer which randomly generates PIN numbers and restricts access to authorized parties. Trezor hardware wallet ensures top-level BTC security and ultimately protects against all types of risks and theft. The price span is quite broad starting from 599 SEK to 6000 SEK for exclusive metallic devices.
KeepKey is a hardware wallet designed as a USB gadget, which offers advanced features that prioritize transparency and security. The wallet supports all well-established cryptocurrencies (Bitcoin, Ethereum, Bitcoin Cash, and others) and 46 ERC-20 coins (which is way less than Ledger and Trezor). KeepKey also offers a simplified backup feature, which generates a recovery phrase that can be requested to retrieve your keys in case the KeepKey wallet breaks or gets lost. The price varies from 150 SEK for the basic options to 500 SEK for limited editions.
BitBox is a hardware wallet designed as a USB device that grants users 100% control over their funds and supports Bitcoin, Ethereum, Ethereum Classic, ERC20 coins and Litecoin. The wallet offers enhanced protection against hacking attacks and computer viruses because no software can be installed on its specialized environment. Moreover, BitBox has invisible touch sensors which allow users to carry out a transaction or enter password with 3 easy gestures - hold, tap or slide. BitBox price varies from 699 SEK to 1000 SEK.
To Wrap Up
As the market is constantly growing, choosing a secure hardware wallet for cryptocurrencies is not an easy task which requires a lot of reading and experimentation. In most cases, your choice will depend on your investment goals and strategies. With security as our main priority, we recommend considering hardware wallets as the most reliable option to store Bitcoin and other cryptocurrencies.