A Guide to the Best Cold Wallet Crypto Devices in 2024
With cryptocurrency scams and theft of digital assets becoming a growing concern, people are turning to solutions that help them safeguard their crypto assets. While decentralized hot storage wallets are a good option, crypto cold wallets are the way to go if you want the best security possible.
This type of crypto cold storage wallet will keep your private keys offline on secure chips so that attackers cannot get a hold of them to spend your funds. But with so many wallets out there, how do you know which one to trust?
Our guide covers the best crypto cold wallets and offline wallet solutions we found in the industry. After testing several wallets, we have put together this list of cold storage wallets to guide you through selecting a suitable hardware wallet.
Best Cold Storage Crypto Wallets - Our Top Picks
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What is a Cold Wallet?
A cold wallet is a cryptocurrency wallet that stores a user’s private keys offline, effectively keeping them safe with additional protection from the clutches of security breaches from would-be attackers. And because your private key is needed to spend crypto, your coins are out of reach in long-term storage.
Cold hardware wallets are currently the safest crypto storage solutions on the market. They come as hardware physical devices, usually like a flash drive, small phone-like gadget, or a portable mifi-shaped device that can either be self-powered, like the Nano X, or powered by your computer, like the Ledger Nano S.
These wallets integrate with software to help deposit and withdraw coins as well as manage your portfolio. Their software can be native, like the Ledger Live, or third-party, like the MetaMask wallet.
A cold crypto wallet and cold storage go hand in hand. It is ideal for people in the crypto world who wish to hold onto their long term crypto they invested in.
How Does a Cold Crypto Wallet Work?
Cold wallets work on the principle of keeping private keys away from any device that has access to the internet and, as such, is vulnerable to online attackers.
Regular software crypto wallets usually store their private keys on the device’s hard drive or browser memory. These places aren’t the safest locations to store private keys as well-designed scripts could access the private keys on the browser tab, and malware could scan your computer or phone hard drive for private keys.
Cold cryptocurrency wallets, on the other hand, combine hardware and software to create a wallet to securely store your private key on a device that is always offline. They work just like a regular wallet but with additional security elements.
When setting up your cold wallet, you’ll generate a mnemonic phrase. Write it down and keep it safe because these seed phrases will be useful in recovering your wallet if you ever lose your device.
Once set up, you’ll have a public address, just like hot wallets, that you can use to receive crypto. Some wallets change this public address from time to time, like the Ledger Nano S hardware wallet, so ensure that you confirm the address each time you wish to deposit.
When you send crypto to your cold wallet address, the funds are kept safe as anyone trying to hack your wallet will need your private keys which are not online but are instead on a secure microchip in your cold wallet.
No keys, no digital assets to steal.
Key Things to Consider When Choosing a Crypto Cold Wallet
Security
The whole point of cold wallets is their added security benefits. Hence, a cold wallet with security threats and issues is a huge red flag to the crypto world.
Usually, security depends largely on the chip used which might make it tough for non-tech-savvy people to decipher who has the best hardware wallet. A way around this is to stick with wallets that have a track record of providing tight security.
For example, we haven’t heard of a scenario where any Ledger hardware wallets were hacked, and they are leaders in the cold wallet space, so they are a good choice.
User Interface
The user interface and resulting experience are important when it comes to how the crypto wallets work. While we expect a few extra steps that could create friction, at least when compared to hot wallets, these should not be extreme.
For example, when using the Trezor wallet, you’ll need to approve transactions for your crypto assets from the wallet by pressing and holding the digital buttons, which could take a while to get used to, especially for those acclimated to one-click hot wallets.
Coin Support
Coin support is important because the more coins a cold wallet supports, the better it can serve as your primary storage solution. Naturally, cold hardware devices have limited support compared to some hot wallets, due to security considerations. However, the major providers are constantly expanding their list of supported new cryptocurrency coins and networks.
Integrations
If you wish to carry out transactions directly from your hardware wallet device, then integration is an important factor to consider. For example, if you want to swap your coins on an Ethereum DEX, you’ll need to use another wallet interface.
A crypto wallet like MetaMask supports Ledger and Trezor integration. You can connect your cold wallet to MetaMask and then swap coins on a DEX, all while keeping your private keys offline. You can also stake, lend, and engage in yield farming strategies while keeping your private keys safe.
The more crypto applications your cold hardware wallet can securely integrate with, the more freedom you have to explore web3 while keeping your coins safe.
Our Top Picks
Looking for a cold wallet? These are our top picks.
What Is the Main Difference Between a Hot Wallet and Cold Wallet?
Hot and cold wallets are similar in various ways. They both store cryptocurrency, have public and private keys, and use mnemonic phrases.
The only true way hot and cold wallets differ is where the user’s private keys are stored. Hot wallets store private keys somewhere on your device or with a custodian. It could be your hard drive or browser memory, while cold wallets store your private keys on a secure chip.
Because your device (phone or laptop) is generally using an internet connection, there is a risk of it being compromised and your private key being accessed. The secure chips that cold wallets use, however, are not connected to the internet and therefore cannot be breached by an online hacker with an internet connection.
Benefits of Using a Crypto Cold Wallet
The main benefit of using a cold wallet is the security and the peace of mind that it brings. You can use your cold wallet with confidence that it is not vulnerable to online hackers and other common crypto scams
Another benefit is the freedom to spend your crypto assets as you like. Custodial wallets, especially those associated with crypto exchanges, are beholden to rules that may not always be in your favor.
The companies that maintain these wallets can be subpoenaed or even sued by government agencies in countries they operate. Kraken was forced to shut down its staking program, essentially erasing a source of passive income for thousands, if not millions, of users.
With a cold wallet and a decentralized hot crypto wallet like MetaMask, you can stake on decentralized platforms that cannot be shut down due to government regulation. You are also not affected by withdrawal suspensions and losses due to bankruptcies.
Cold wallets allow you to invest in crypto just like you would with a hot wallet or even a custodial wallet. Some wallet applications, like the Ledger Live can connect to some crypto exchanges, like Binance to trade securely.
Final Thoughts on the Best Crypto Cold Wallets
We explored the best cold wallet crypto hardware on the market and picked Ledger Nano X as our top choice because of its industry-leading technology, Bluetooth connectivity, crypto asset support, and integration with popular crypto software.
However, all the best hardware wallets on our list are viable options for secure cold storage and will serve you well, depending on the features that are most important to you.
For example, if security is of the essence and portability is not a consideration, then the Ledger Nano S Plus will serve you well. If you’d like to carry around your device, although ill-advised, then the SafePal S1 will serve you well.
If you’d like to manage your crypto from a mobile phone, then the Ledger Nano X will best serve your needs, thanks to its Bluetooth connectivity.
Whichever wallet you choose, ensure that you back up your wallet by writing down your mnemonic phrase immediately when you set up the wallet. Keep this phrase offline at all times as storing it online and connected to the internet defeats the purpose of using offline storage.
Also, maintain more than one copy of your seed phrase in different locations to increase redundancy.
Methodology - How We Picked the Best Crypto Cold Wallets
The wallets covered in this guide were chosen through rigorous research and reviews. We paid attention to security, reputation, user experience, asset support, and competitive edge.
The wallets listed are the best we found in the various categories we listed them. For example, we listed Ledger as the best overall wallet because of the balance of security, asset support, interface, and integration.
Check out our why trust us and how we test pages for more information on our testing process.