Do you really need a hardware wallet to store Bitcoin and other cryptocurrencies?
No.
You do not need a Bitcoin hardware wallet to buy, sell, send and keep your crypto. But if you want to take security into your own hands, a hardware wallet is the most secure way to store your crypto assets.
Here are top 3 Bitcoin hardware wallets to store your digital assets securely while giving you convenient access to your funds:
The Safest Way to Keep Your Bitcoin
Think about it…
Bitcoin is the best performing asset in history and is well on its way to becoming the most reliable, global money ever.
If you owned the most desirable asset in the universe, how would you protect it?
Whether you’re a newcomer who just bought your first Satoshi, or a long-term HODLer who manoeuvred throughthe various bull and bearcycles, you need a secure place to store your precious crypto holdings.
So where do you keep all your Bitcoin?
Bitcoin stores value, you want to make sure to keep it safe.
A quick search online will show you two main options for storing Bitcoin and cryptocurrencies: Hot wallet (hardware) and cold wallet (online, software).
Hot Wallets (Online)
Hot wallets like exchange wallets (Binance,Coinbase)and software wallets (exodus) are easy-to-use and incredibly convenient for transferring small amount of crypto. But hot wallets are connected to Internet at all times 365/24/7, making them extremely vulnerable to hacking and viruses.
What’s more, hot wallets are custodial wallets. Which means that you don’t own the private key to your Bitcoin. Without the ownership of private key, you wouldn’t really own the assets.
It’s less secure as you have to trust the wallet providers, who can limit what you can do with your crypto.
While hot wallets are usually free, easy to setup and use, they are highly prone to hack, fraud and other types of cyber attacks. You could lose your funds permanently almost overnight. For that reason, they are only good for small daily transactions or trading purposes.
Cold Wallets (Offline)
On the other hand, cold wallets (like hardware devices or paper wallets)are a more secure and safer way to store your cryptocurrency.
They are completely offline and inaccessible to any hacker, offering a a greater level of security.
If you’re going to invest a substantial amount, you should get yourself at least one Bitcoin hardware wallet.
It’s the best investment you can make to protect your Bitcoin.
Storing your crypto assets using a hardware wallet is like being your own bank.
You own your hardware device, you own the private keys, you can access your funds whenever you like without asking permission and without any restrictions.
The Pros of Hardware Wallets
1. Offline
The cold storage keeps your Bitcoin private keys offline while allowing you to control, manage and verify transactions. This reduces your risk of being hacked through an internet connection.
2. Extremely secure
A hardware wallet is by far the most secure way of keeping Bitcoin and cryptocurrency. To date, there have been no verifiable incidents of Bitcoins being stolen from a hardware wallet.
- Even if you plug your hardware wallet into a computer or mobile device infected malware and viruses, there will be no risk of having your private keys compromised.
- If your hardware wallet falls in the wrong hands, your coins will be safe. Because your device is protected by a PIN.
- Transactions are verified on the device itself, instead of computer monitor.
3. You own your private keys
The golden rule: “Not yourkeys,not your coins”.
If you keep your coins in an exchange, online wallet, software wallet or any hot wallets, you’ll need to give away control of your private keys to the crypto assets to a third-party. You’re putting your ownership of your Bitcoin at great risk, as hot wallets will be easily compromised and attackers can steal all your coins.
With hardware wallet, you don’t have to trust any third party.
No one else(except you) has access to your passphrase, and that means no one else can move your BTC.
You have complete control over your private key.
4. Store multiple cryptocurrencies in one wallet
You can use a hardware wallet to store many different types of cryptocurrencies all in one single device. For example, Ledger and Trezor hardware wallets supports over 1000+ cryptocurrencies including Bitcoin, Ethereum, Litecoin and more.
The Cons of Hardware Wallets
1. It’s not free
A hardware wallet can cost you anywhere from $55 to $170 depending on the brand and model you get.
The new Ledger Nano X costs $119, a Trezor Model T is $169. While the first generation, Ledger Nano S and Trezor One cost about $55 each.
2. Backup your wallet
With Bitcoin hardware wallet, you have the privilege to control your crypto holdings- but also the responsibility to protect them accordingly.
So, what if your hardware device was lost, stolen or damaged?
In case you lose your hardware wallet, you can also always restore your wallet and get back all your Bitcoin in a new wallet as long as you have the recovery phrase.
However, if you forget your seed phrase, no one can reset it. And you can lose your Bitcoin entirely.
With that said, it’s of utmost importance that you backup your wallet. To do that, you will need to write down a unique series of 12 or 24 words called a recovery phrase (also known as recovery seed).
Make sure yourrecovery phase is correctly secured.
The recovery phrase is everything!
Make sure you are the sole holder of of the 12 or 24-word recovery phrase. Whoever has the recovery phrase will have control over the coins.
What kind of Bitcoin wallet should I use?
Even if you’re just getting started in cryptocurrency and don’t own a lot of BTC, it’s a smart move to invest in a hardware wallet to ensurethe safety and securityofyour crypto assets.
Although there’s an upfront investment to purchase a hardware wallet, sooner or later, you’ll need to have a secure cold storage to protect your cryptocurrency from both physical and virtual theft.
At the same time, you can still use hot wallets for trading and making quick micropayments. But when it comes to long-term HODLing, always store your Bitcoin in a hardware wallet!
As you may be aware, the value of Bitcoin can increase very quickly. It’s a good idea to setup your hardware wallet now rather than later.
You most certainly do not want to get caught in a situation where you have a large amount of crypto stored insecurely in a hot wallet.
To enjoy security, peace of mind, ownership and ease of use for your Bitcoin, here are the top-rated hardware wallets in the industry that you should use.
Best Bitcoin Hardware Wallets
If price is not an issue, Ledger Nano X is the best Bitcoin Hardware wallet for storing cryptocurrency with maximum security and maximum convenience.
Launched in 2014, Ledger is a leading crypto hardware wallet provider. Ledger Nano X is the Ledger’s newest, premium hardware wallet.
Ledger Nano X is one-stop shop for your crypto, allowing you to:
- Securely store over1500+ crypto assets: Bitcoin, Ethereum, XRP, EOS, Stellar and many more.
- Buy Bitcoin directly in Ledger Live with their partner Coinify.
- Exchange crypto-to-crypto directly in Ledger Live with their partner Changelly.
- Manage your crypto on-the-go by connecting your Ledger Nano X to your smartphone with Ledger Live.
- Grow your crypto holdings by staking crypto directly in Ledger Live. You stake Tron, Tezos, Cosmos or Algorand and earn rewards.
Ledger Nano X is priced at $119, including free shipping to almost every country worldwide. Use it to store, send, receive, buy, exchange and manage crypto on the go, without ever leaving the security of your wallet.
Ledger Nano S is an older version. It’s as secure as Nano X, but comes with a cheaper price.
Similar to Ledger Nano X, with Nano S you can store, exchange, manage, buy, transfer crypto in one single-app.
A major difference is that Nano X has the bluetooth connectivity feature, while Nano S doesn’t.
So you need to connect Ledger Nano S to a computer using USB cable every time you want to make a transaction.
You can get Ledger Nano S for just $59.
This small and compact device provides an easy and affordable way of securely holding your coins.
It’s protected by a PIN and easy to set up and use. Follow this step-by-step guide to setup your new Ledger Nano S in minutes.
Trezor Model T (Left) and Trezor One (Right)
Trezor is one of the most popular crypto hardware wallet providers in the market. Just like Ledger, Trezor has two versions of hardware device:
- Trezor Model T (Premium Choice): $169, new version, comes with a touchscreen.
- Trezor One (Gold Standard): $55, the first generation, has two physical buttons and a screen.
With Trezor, you can be sure that you are the only one who own and control the private keys, passwords and coins. Trezor supports over 1000+ cryptocurrencies. You can use it to securely store, manage, buy crypto all in one device.
Trezor is very easy to use. Simply connect Trezor to your computer with a USB, and click buttons on the hardware wallet (Trezor One) or touch the screen (if you’re using Trezor Model T) to verify and sign transaction.
Your private key is 100% safe and kept completely offline, within the device.
What’s great, you can buy Bitcoin and other top cryptocurrencies directly from the safety of your Trezor wallet interface! This way, you can quickly buy or exchange crypto while retaining total ownership. You don’t have to leave your crypto in the hands of any exchange as you will receive crypto straight to your Trezor wallet.
Tip#1:
Always buy a hardware device directly from the manufacturer’s online shop.
Never trust a reseller or middleman who’s selling hardware wallets on marketplaces like Amazon, eBay or Craigslist.
Don’t buy a second-hand hardware or buy ones through 3rdparties.
If the device is tempered, hackers could easily empty your wallet without your knowledge.
Don’t risk losing some or all your funds just to save a few bucks.
Use links on this article (Trezor and Ledger)and you’ll be directed to the official supplier page to purchase a 100% brand-new hardware wallet.
Conclusion
There are many types of wallets that you can use to keep your Bitcoin and cryptocurrencies. Among all the options, hardware wallet offers the best level of protection.
With a Bitcoin hardware wallet like Trezor and Ledger, your key will remain protected in a certified secure chip.
You keys= your coins.
You can manage, store, and buy crypto without worrying about security of your assets.
Lastly, make sure you’re getting an authentic hardware wallet directly from the manufacturer. Or you’ll risk losing all your funds permanently
Not sure which hardware wallet is right for you? Check out this comparison and review of Trezor vs. Ledger.
How do you keep your Bitcoin and cryptocurrency?
Would you use a Bitcoin hardware wallet? Why or why not?
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