Wallets
Piece of hardware or software that is used to store, receive and send crypto funds.
Wallets have 2 parts
Public key: Address used to receive crypto.
Private key: The holder of this key is the only person with access to their funds.
Custodial wallets
These wallets have custody of your private key, like exchanges (Binance, Coinbase, Okex..). On these exchanges, your crypto funds aren’t yours. (CEX)
Non-custodial wallets
Wallets where the private key is only held by their owner. Creating such a wallet just requires writing down a private key and storing it in a safe place (piece of paper, not online).
● Hot wallet software available online (ex: Metamask)
● Cold wallet hardware (USB) not available online
Paper wallet
Paper wallet is a cold storage method for storing cryptos. It is different from a hot wallet because they don’t operate through the Internet. As its name says, it is made out of paper and contains QR codes and keys that are used in transactions. A paper wallet is a piece of paper with your private and public keys printed out. Some paper wallets might also have a scannable barcode created by an app. It is a way to store and take access to your cryptocurrency offline. When you print your keys, they are removed from the cryptocurrency network, but the tokens remain; however, they are inaccessible without your keys. No one can hack your paper wallet or retrieve your keys unless they physically take the paper on which you have them stored. Removing them from your digital wallet also means that if you lose your paper wallet, you’ll not be able to gain access to those cryptocurrencies again.
How Do You Get a Paper Wallet for Cryptocurrency?
Creating a paper wallet can be as simple as writing your keys down on paper to using an app to generate a QR code, and printing the key and code.
Hardware wallets
Hardware wallets are physical devices that store your private keys and keep them safe from any outside attack. They can be plugged into a computer, or connected to a mobile device to enable users to manage and spend their crypto, but all aspects of any transactions and validations are done on the device itself. Even if the device being used is infected with malware or is otherwise compromised, the hardware wallet remains secure and nobody else can get access to the private keys.
There are a few things to weigh up before choosing which one is right for you:
● Security
● Coins supported
● Price
One final point to remember when buying a hardware wallet is to always buy it directly from the maker. Avoid buying your wallet from eBay or anywhere else where it might have been interfered with and order straight from the supplier’s website.
Top 5 hardware wallets
- Trezor Model T
The Trezor brand is a creation of Prague-based company Satoshi Labs (Trezor means ‘vault’ in Czech) and the first device was launched back in 2013. This hardware wallet comes in at $195 and supports over 1,000 crypto assets. Trezor has been audited by third-party security researchers and boasts a long-standing successful track record. Trezor can be used with the online Trezor web wallet on desktop or mobile, or via the downloaded Trezor suite app on desktop. Trezor can also be integrated with web 3.0 wallets such as Metamask.
Trezor offers two hardware wallets, the less robust and cheaper Trezor One and of course the flagship Model T. One of the most obvious benefits of the Model T over the Model One is that you have more coin support, and sensitive information such as the pin code and recovery phrases are entered directly on the Model T’s touch screen keeping all sensitive information off the computer, unlike the Trezor One. Some of the coins not supported by the Trezor One wallet include Cardano (ADA), Monero (XMR), EOS, Tezos (XTZ), and BNB.
Another great benefit of the Trezor Model T over the model One device is that it has that user friendly colour touch screen. Trezor is compatible with the major computer operating systems: Windows, Mac, Linux, and works with Android for mobile. Apple’s IOS and Windows mobile operating systems, as well as the Chrome OS are not yet supported. Trezor hardware wallets do not directly support staking. However, users can connect their Trezor wallet to third-party Web 3 wallets to participate in staking.
It’s worth noting that in April 2022, Terzor confirmed that its users received scam mails from hackers who were trying to phish the users of the wallet to steal their funds. The attackers targeted MailChimp users via a mailing list which was then used to send fake notifications and link to the email owners to trick them.
2. Ledger Nano X
Ledger is a company that is based in France and is considered the standard in the hardware wallet market. The Ledger Nano X is the premier product in the Ledger stable and is more expensive than the entry-level Nano S. The Nano X stores over 1,800 different cryptocurrencies and comes equipped with industry-leading security, including a CC EAL5+ Certified secured chip. The ledger device can connect with a desktop computer through a USB cable, as well as desktop or mobile via a Bluetooth connection. Ledger can run on Windows, Mac, Linux, IOS and Android.
Through the use of the Ledger Live software, users can manage their coins on desktop or mobile for on-the-go transactions. Your private keys cannot be accessed from your computer or mobile, making this more secure than simply using a mobile wallet. Ledger is incredibly secure and to date, there have been no vulnerabilities or exploits to the wallets themselves.
Although most of the crypto can be managed through the use of the Ledger Live software, there are many assets that have native wallets not supported with the software yet. However, given the popularity of the Ledger hardware devices, many of them have integrated with Ledger in order to allow users to securely store their keys.
While the Nano X is more expensive, it has everything that the Nano S has, while also coming with Bluetooth connectivity, a slightly larger screen and the ability to store 100 apps, as opposed to the three to six apps available on the Nano S which has been reported as a major pain point for many users as they feel there is not enough space to install enough apps to support multiple different networks leaving users unable to hold all their favourite coins. Both Ledger Nanos also support integration with web 3 wallets such as Metamask, allowing users to access various DeFi platforms.
● Price: $119
● Coins supported: 1,800+
For crypto users without the need for 100 apps, or the need to store multiple different Altcoins, the Ledger Nano S may be a better solution for a price that is easier on the bank account ($59/£43/€50). However, for all-around features and the ability to store a whole host of different assets, the Nano X deservedly takes one of the top spots.
Ledger wallets directly support staking a few tokens, including ETH, SOL, ATOM, and DOT, via Ledger Live. However, staking more coins would require connecting the Ledger wallet to third-party web 3.0 wallets like Metamask.
It is important to let you know that Ledger did suffer a data breach in mid-2020 resulting in 272,000 customers’ home addresses, telephone numbers, names and about one million email addresses being stolen by hackers. While the crypto-assets themselves were not at risk, this breach did lead to fake emails being sent out by hackers pretending to be Ledger staff asking for users’ private keys and recovery phrases.
3. KeepKey
KeepKey was bought by Shapeshift back in 2017, so the wallet has full integration with the Shapeshift platform and its exchange which can be accessed directly from the KeepKey wallet. Keepkey only has the option of generating a 12-word recovery phrase, and users manage their funds via the Shapeshift Platform when the device is plugged into a computer via USB.
KeepKey’s security was compromised when rivals Ledger found a way to extract pin codes from the wallet, although this required having physical possession of it. The glitch was later fixed in an update.
● Price: $49
● Coins supported: Around 40+.
The main drawback with KeepKey is its relative paucity of coin support in relation to the other wallets on this list. The Keepkey wallet also lacks integration to many web 3 wallets such as Metamask leaving users unable to interact with many DeFi apps. Keepkey natively supports Bitcoin, Bitcoin Cash, Bitcoin Gold, Dash, Dogecoin, Ethereum, Kyber Network, Litecoin and DigiByte and can be paired with MyEtherWallet to allow support for any ERC-20 token. This is still a pretty limited list in comparison to its rivals and could well prove unsuited to anyone holding a particularly diverse portfolio.
4. Ellipal Titan
The Titan is an air-gapped cold storage wallet that works in complete network isolation for true offline cold storage. This hardware wallet has the most extensive coin support on this list and is sealed to ensure that it is dust and water-proof, also coming with an anti-tamper feature that will delete all of the private keys should someone try and physically break into the device to tamper with it. The device itself is secured via a passcode, so users should be sure to use a strong passcode with this device and store the Titan someplace safe as you would with any hardware wallet.
The Ellipal Titan is the only wallet on this list that is kept completely separated from network connectivity, with enhanced security in the form of only relying on QR codes to transfer data. The Ellipal cannot be connected to any connections such as USB, Wifi or Bluetooth, protecting your crypto against remote and network attacks.
Ellipal supports 40 different blockchains and 10,000+ crypto assets with new coins added each month, and even allows users to stake assets, earn interest and even buy or exchange crypto through the apps that can be installed on the wallet. Ellipal hardware wallet can be used in conjunction with the Ellipal mobile app which is available on both IOS and Android.
● Price: $169
● Coins Supported: 40 Blockchains, 10,000+ coins and tokens.
Some of the cons with the wallet are that the default Bitcoin address generates the BIP 44 Bitcoin address that begins with the number 3 instead of the new and widely accepted BIP 84 Bitcoin addresses that begins with bc, which could lead to more expensive Bitcoin transactions for users. Another deal-breaker for many users is that the Ellipal wallet does not give users access to their own Xpub keys which leaves this wallet not operable with many apps and does not give users the option to import “view only” wallets. Various crypto payment gateways for eCommerce use Xpubs to generate new payment addresses for various checkouts, so this limitation of the wallet should be considered.
Security minded users may be turned off by the Ellipal’s ability to only generate a 12-word seed phrase instead of a more secure 24- word phrase, and the wallet has no support for test net coins for any blockchain network.
5. SecuX V20
The SecuX V20 contains a complete suite of security features in place from protected production chain, to tamper-resistant packaging, right down to its military-grade Infineon SLE Solid Flash CC EAL5+ certified secure element to keep your assets safe. The SecuX V20 is made with a strong aluminium case ensuring longevity and protection against bumps and drops.
This hardware wallet connects via USB C or Bluetooth and is compatible with windows, IOS, Android, Google Chrome, Mac and Linux. Connection to both desktop and mobile devices is done through the dedicated SecuX app. The SecuX V20 supports over 1000 coins and tokens.
● Price: $139
● Coins Supported: 1,000+ Cryptocurrencies.
The SecuX wallet does have an internal battery so the device can be charged with the USB C cord that comes with it allowing for use of the device on the go. The wallet is easy to interact with as it has a 2.8-inch colour touch screen, making this device more like a mini-portable crypto computer than simply just a wallet. The SecuX has compatible recovery with BIP 32, 39, and 44 standards and uses 2-factor authentication during Bluetooth connection for additional security.
The SecuX V20 is backed up using a more secure 24-word recovery phrase instead of the standard 12 word, and the wallet itself is accessed with a pin code set by the user. The wallet also has a “hidden wallet” feature which allows users to hide a separate portfolio hidden within the wallet with its own pin as an added layer of security.
A major downside with this wallet, as with any hardware wallet aside from Trezor and Ledger is the lack of integration to web wallets such as Metamask and lack of mainstream support, leaving users unable to access many DeFi applications until these wallets become more widely adopted. Users of this wallet are also unable to view their Xpub keys leaving users unable to pull in view only wallets like those used by some third-party apps, and limits various crypto payment gateways for eCommerce. There is also no support for testnet coins nor the ability to add custom tokens.
It is worth mentioning that Trezor and Ledger have both been industry leaders for many years, being tried and tested, passing multiple security audits and have set the bar for cold wallet security.
