Top 7 Hardware Wallets for Beginners

Hardware wallets are the gold standard for protecting your digital assets, offering a level of security that surpasses hot wallets (software wallets connected to the internet).

As the cryptocurrency market reaches new heights, with Bitcoin's value surging past record levels, security breaches and hacks have become increasingly common. A recent report by Chainalysis highlights that cryptocurrency losses due to theft totaled over $3 billion in 2022 and about $1.7 billion in 2023.

Hardware wallets offer a robust line of defense against these threats. By storing your private keys offline, they shield your cryptocurrency from the vulnerabilities of online-connected devices. If you're serious about safeguarding your crypto investments, a hardware wallet is an essential investment.

What To Look For When Choosing A Hardware Wallet?

Here's a breakdown of the key factors to consider when choosing a hardware wallet.

1. Security Features

• Offline Storage: The primary advantage of hardware wallets – your private keys are stored offline, making them far less susceptible to hacking or malware.
• Secure Element (SE): Dedicated security chips designed to protect sensitive information are a vital component of reputable hardware wallets.
• PIN/Passphrase Protection: Prevents unauthorized access even if the physical device is compromised.
• Recovery Seed: Offers a way to restore your wallet if it's lost or damaged. Store this seed phrase securely and offline.
• EAL Rating: Evaluation Assurance Level (EAL) ratings offer an industry-standard measure of security. Wallets with higher EAL ratings have undergone more rigorous security assessments.

2. Supported Cryptocurrencies

• Multi-currency Support: Look for a wallet that supports the assets you own or plan to invest in. Popular wallets often support a wide range of major cryptocurrencies and tokens.
• Future-Proofing: Consider wallets that regularly update supported cryptocurrencies to stay aligned with your expanding portfolio.

3. User Interface & Experience

• Display Screen: A clear screen makes verifying transactions easier and safer.
• Input method: How you interact with the device matters. Some may be easier to navigate than others.
• Companion Software: Ensure user-friendly wallet management software for easy setup, updates, and transactions.

4. Company Reputation and Transparency

• Track Record: Choose companies with positive customer feedback and a history of reliable security practices.
• Open Source: Many reputable hardware wallets have open-source code, allowing for independent security audits, enhancing trust.

5. Backup and Recovery

• Secure Seed Phrase Storage: Your recovery seed phrase is critical. Treat it with the utmost care. Consider fireproof/waterproof storage devices for added safety.
• Recovery Processes: Make sure the recovery process is clear and well-documented by the wallet manufacturer.

1. Ledger Nano S Plus: Affordable Ledger

Ledger is a leading name in hardware wallets, and the Nano S Plus builds upon their proven track record.

This wallet strikes a balance between affordability and essential security features, making it a popular choice for both beginners and experienced crypto holders.

Pros

• Enhanced Security: The Nano S Plus features a secure element (CC EAL5+) chip for safeguarding your private keys. This, coupled with offline storage, provides robust protection against hacks.
• Multi-currency Support: Compatible with over 5500 cryptocurrencies and tokens, the Nano S Plus caters to a diverse range of assets.
• Ease of Use: While lacking a large touchscreen, the Nano S Plus boasts a clear display and two physical buttons for simple navigation. Setup and management via the Ledger Live app are straightforward.
• Price: At $79, it's one of the most affordable hardware wallets offering these security features.

Cons

• Limited Storage: Can store approximately 100 crypto apps simultaneously. If you hold numerous coins/tokens, you may need to uninstall and reinstall apps.
• No Bluetooth: This enhances security but requires a wired connection to a computer or phone when using Ledger Live.
• Smaller Display: Compared to premium wallets, the display can feel cramped when verifying transactions.

What Sets It Apart

The Ledger Nano S Plus targets a sweet spot. It prioritizes strong security without the bells and whistles that increase the cost of more extensive models. It's ideal for users who want a no-fuss approach to offline storage for a wide range of assets.

Is It Right For You?

The Ledger Nano S Plus is excellent if:

• You seek a proven security solution at an affordable price.
• You don't require Bluetooth connectivity.
• Managing a large number of different crypto apps simultaneously isn't a priority for you.

2. Ledger Stax: Security Meets Style

The Ledger Stax marks a bold step forward for the company, designed for ease of use and everyday crypto management.

With a large curved E Ink touchscreen and a focus on sleek design, it aims to redefine the hardware wallet experience.

Pros

• Intuitive Interface: The spacious, touch-enabled E Ink screen is a game-changer, revolutionizing hardware wallet usability. Navigating menus and verifying transactions is significantly more intuitive compared to button-only models.
• Design: Inspired by credit cards, the Stax is pocket-friendly and even customizable with NFT displays. The curved E ink on the spine continually displays essential information like battery level and asset names.
• Enhanced NFT Support: Designed with NFTs in mind, it offers clear displays and management features.
• Wireless Connectivity: Bluetooth and wireless charging enhance convenience, allowing use of Ledger Live on mobile devices without a cable.
• Large Asset Support: Boasts support for over 5000 coins and tokens.

Cons

• Price: At $279, it's on the higher end of hardware wallet prices.
• Potential Security Tradeoffs: Bluetooth connectivity, while convenient, can introduce some additional security considerations compared to fully wired devices.
• Availability: The Ledger Stax might face stock shortages due to its popularity.

What Sets It Apart

The Ledger Stax emphasizes user experience above all else. Its large touchscreen streamlines crypto management and makes it more accessible, potentially bridging the gap between usability and the security benefits of hardware wallets.

Is It Right For You?

The Ledger Stax is perfect if:

• You prioritize seamless interaction with your digital assets and value a user-friendly interface.
• You frequently manage NFTs and want a wallet that caters to them.
• You appreciate modern design and don't mind the higher price tag.
• You are comfortable with the potential trade-offs of Bluetooth connectivity in favor of convenience.

3. Tangem: Feels Like A Credit Card

Tangem takes a radically different approach to the hardware wallet concept.

It foregoes screens and buttons, instead offering a credit-card sized device with embedded NFC capabilities.

This distinct design simplifies the user experience and offers some interesting advantages.

Pros

• Ultimate Portability: The card-like form factor fits easily in any wallet, making it the most discreet and portable hardware wallet option.
• Ease of Use: NFC capabilities enable seamless interaction with compatible smartphones. Setup and transactions are streamlined using the Tangem app.
• Multi-currency Support: Tangem boasts support for thousands of cryptocurrencies across a wide range of blockchains.
• Accessibility: The Tangem's user-friendliness makes it a great option for beginners in the crypto space.
• Durability: The card is designed to withstand everyday wear and tear.

Cons

• Closed-Source Firmware: Some users might prefer the transparency of open-source wallets, as Tangem's security relies on the company's internal processes.
• Limited Functionality: It lacks display and buttons, so verification of all transaction details occurs on your mobile device screen.
• Price: Starting at $54.90, Tangem is a great starting point for many in the hardware wallet space.

What sets it apart

Tangem's appeal lies in its convenience factor. The card format and NFC capabilities make crypto holding and transactions feel more familiar to those accustomed to using contactless payment cards.

Is it right for you?

The Tangem wallet is ideal for:

• Those prioritizing ease of use and portability above all else.
• Crypto users who frequently make smaller, on-the-go transactions.
• Beginners uncomfortable with traditional hardware wallet interfaces.
• Investors wanting an additional backup hardware wallet option.

4. Trezor Model One: Time-Tested Wallet

The Trezor Model One, developed by SatoshiLabs, has stood the test of time as a reliable cryptocurrency storage solution.

While surpassed in features by newer models, it remains a dependable option for users seeking a tried-and-true approach to securing their assets.

Pros

• Proven Security: Trezor boasts a long-standing reputation for security, with no major breaches. Offline storage and secure element technology protect your assets.
• Open-Source: Transparency is key, with Trezor using open-source code allowing for community audits.
• Wide Asset Support: Supports over 1600 cryptocurrencies, offering options for a variety of holdings.
• Ease of Use: While lacking a large touchscreen, the Trezor Model One's button interface and display are intuitive. Trezor Suite provides a user-friendly platform for management.
• Affordable: At $59, it's one of the more budget-friendly hardware wallets offering dependable security features.

Cons

• Outdated Design: The small screen and buttons can feel less smooth compared to newer models with touch interfaces.
• No Bluetooth: Requires a wired connection to a computer, affecting portability.
• Smaller Coin Support: While offering a wide range, some newer and less popular cryptocurrencies may be unsupported.

What sets it apart

The Trezor Model One is a classic. Its strong security focus and track record make it ideal for those who want tried-and-true crypto asset protection without a fuss.

Is it right for you?

The Trezor Model One is a solid choice if:

• You value proven reliability and a focus on security fundamentals.
• You find its price appealing and don't require cutting-edge features.
• Managing a vast range of niche coins isn't your primary goal.

5. SafePal X1: Open-Source and Wireless Wallet

The SafePal X1 takes a unique approach to hardware wallets, opting for Bluetooth connectivity and a focus on open-source values.

While this offers some advantages, it's important to understand the features and trade-offs involved.

Pros

• Air-gapped Security: SafePal uses a unique air-gapped signing mechanism. Private keys are not directly exposed via the Bluetooth connection.
• Open-Source Focus: Their code is available for community scrutiny, enhancing security transparency.
• Large Display: Clear transaction verification and easy navigation on the 1.9" screen.
• Budget-Friendly: Coming in at $69.99, this is an affordable option for those seeking a balance of features and cost.

Cons

• Wireless Connectivity: Bluetooth introduces potential security considerations compared to fully offline devices. Understanding this trade-off is crucial.
• Potential for Complexity: The air-gapped signing process may feel more complicated than traditional wired wallets for some users.
• Smaller Coin Support: While expanding, the supported assets list may not be as extensive as some competitors.

What sets it apart

The SafePal X1 offers a compromise between convenience and security. It targets users who value Binance integration, understand wireless security trade-offs, and seek a wallet backed by open-source principles.

Is it right for you?

The SafePal X1 could be a good fit if:

• You prioritize open-source transparency and appreciate the additional layer of scrutiny it provides.
• You understand the potential security implications of Bluetooth and are comfortable with the air-gapped implementation.
• You find the price attractive compared to more expensive touchscreen models.

6. NGRAVE ZERO: The Ultimate in Offline Crypto Security

The NGRAVE ZERO stands apart from other hardware wallets with an uncompromising focus on security.

It boasts military-grade encryption, an air-gapped offline design, and a tamper-proof construction, making it an appealing choice for those seeking the absolute highest level of protection.

Pros

• Unmatched Security: EAL7 certification, the world's highest security standard, is a major testament to NGRAVE's robustness. No internet connectivity means no attack vectors for hackers.
• Unique Key Generation: Combines internal device entropy with user-created factors (fingerprints, light patterns) for unpredictable key generation.
• QR code Communication: Data transfer via QR codes further enhances the air-gapped design.
• Premium Feel: Its sleek design and high-resolution display impart a sense of quality.

Cons

• Very Expensive: At EUR 498, NGRAVE ZERO is one of the most expensive options in the hardware wallet market.
• Setup Complexity: The setup process and key generation are more involved than standard wallet options.
• Limited Features: The focus on security comes at the cost of bells and whistles like Bluetooth, extensive coin support, or NFT features.

What sets it apart

The NGRAVE ZERO exists in its own security-focused category. Its price and complexity will likely deter casual users, but for those who demand the utmost safeguarding of their crypto assets, it's unmatched.

Is it right for you?

The NGRAVE ZERO is well-suited for:

• Individuals holding extremely high-value crypto portfolios who want the absolute best in offline protection.
• Security-conscious users who understand the trade-offs of limited features and a steeper learning curve.
• Those who find peace of mind in extreme physical backup resilience offered by the GRAPHENE plates.

7. Coldcard Q1: Premium Security with Features

The Coldcard Q1 builds upon the solid foundation of the existing Coldcard models with a range of enhanced features for security-conscious crypto enthusiasts.

It has a full QWERTY keyboard, larger screen, and even a built-in QR scanner for versatile data transfer.

Pros

• Advanced Security Features: The Q1 inherits numerous Coldcard security staples like multi-signature support, duress PIN functions, and secure elements for offline private key protection.
• Full QWERTY Keyboard: Enables easy passphrase input, especially useful for long, complex passphrases for added security.
• Built-in QR Scanner: Streamlines transactions and communication, offering both flexibility and additional air-gapped security.
• Large Screen: Clear readability for reviewing detailed transaction information before approval.
• Battery Powered: Portable design allows usage on the go without relying on wired connections.
• MicroSD Support: Provides the option for encrypted backups.

Cons

• Price: The Coldcard Q1 is among the most expensive hardware wallets.
• Learning Curve: While well-documented, the multitude of security features may present a steeper learning curve for less technically-inclined users.
• Focus on Bitcoin: Those heavily invested in altcoins might find the Bitcoin-centric approach limiting.

What sets it apart

The Coldcard Q1 appeals to those wanting advanced security features and usability enhancements without sacrificing offline security principles. Its QWERTY keyboard and QR scanner create a unique experience among top-tier hardware wallets.

Is it right for you?

The Coldcard Q1 is a fantastic option if:

• You place the utmost priority on security and seek a power user-focused wallet with advanced features.
• You frequently work with longer passphrases and prefer the ease of a dedicated keyboard.
• You find value in the convenience of a battery-powered design and QR scanner.
• The premium price point aligns with your investment in robust asset protection.

Conclusion

With the increasing scams and hacks in the crypto markets, it's important to take security measures to safeguard user funds. Hardware wallets, also called cold wallets, are a great step to ensure safety.

A crucial difference between these wallets, and mobile wallet applications or browser extensions is the internet connectivity. The hard wallets are only connected to the internet when a user connects the wallet to a device. Whales and other high-value holders ensure the use of hard wallets for safety and this seems to be a great practice.

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