In your quest of investing in cryptocurrencies, someone somewhere must have at least once suggested you store your valuable tokens in crypto wallets. Simply put, unlike normal wallets, which hold actual cash, crypto wallets don’t store crypto tokens.
The tokens that you hold in a cold wallet exist only in the blockchain network and can only be accessed through a private key. This key holds great importance because it proves that you are the owner of your digital tokens and enables you to make transactions. In case you lose your private key, you cannot access your money.
So, to make it easier for you to invest in cryptocurrency and to keep your investments safe, we’ve garnered a list of the top 6 cold wallets for crypto. But, what makes them safe? Let’s find out:
Types of Crypto Wallets
There are two types of crypto wallets, mainly: hot wallets and cold wallets. Hot wallets are created and stored on a device such as your smartphone or laptop and are considered less secure than cold wallets as they are always connected to the internet.
Cold wallets, on the other hand, are crypto storage solutions that are not connected to the internet. Cold wallets are also called hardware wallets and use a physical device such as a USB stick. The reason cold wallets are considered the most secure is that hackers would require access to your physical device and the related password or PIN.
When to Use a Cold Crypto Wallet?
Here are some situations where using a cold crypto wallet can be beneficial:
Long-term Storage
If you plan to hold onto your cryptocurrency for a long period, a cold wallet is the best option. Since it is an offline storage device, it is more secure than an online wallet. A cold wallet’s private keys are stored offline, making them much more difficult to hack or steal. If you plan to hold your cryptocurrency for several months or even years, a cold wallet is a good option to ensure that your investment is safe and secure.
Large Sums of Cryptocurrency
If you have a significant amount of cryptocurrency, it’s best to store it in a cold wallet. The larger the amount of cryptocurrency you own, the greater the risk of losing it if you use an online wallet. Hackers can target online wallets to steal cryptocurrencies, and if they succeed, the damage can be significant. In contrast, a cold wallet is almost impossible to hack, making it the safest option for storing large sums of cryptocurrency.
Infrequent Transactions
If you don’t need to access your cryptocurrency frequently, a cold wallet is an excellent option. You can store your private keys offline, reducing the risk of them being stolen or hacked. This is especially useful if you own several cryptocurrencies, and don’t need to use them all the time. Keeping them in a cold wallet ensures that they are safe and secure until you need them.
Traveling
If you’re traveling with cryptocurrency, a cold wallet is a safer option. When traveling, you may have to use public Wi-Fi or other unsecured networks, which can be risky. With a cold wallet, you can carry your cryptocurrency with you safely without having to worry about losing it or being hacked.
Diversification
Diversifying your cryptocurrency holdings across different wallets is always a good idea. This reduces the risk of losing all of your cryptocurrencies in the event of a hack or theft. A cold wallet is an excellent option for storing a portion of your cryptocurrency portfolio.
Crypto Storage: The 6 Cold Wallets for Crypto of 2022
1) Ledger Nano X
Ledger Nano X is one of the best cold wallets in the business. This is a second-generation hardware wallet from Ledger, a developer of security and infrastructure solutions for cryptocurrencies as well as blockchain applications.
With this physical wallet, you can buy, manage, or exchange your tokens on the go because it also has a mobile application. With the included Ledger Live software, you can check your balance, send/receive tokens, and more. The wallet supports more than 1,800 tokens and it even supports crypto staking where you earn rewards based on your balance.
The Ledger Nano X wallet is made from brushed stainless steel and plastic and its dimensions are 72mm x 18.6mm x 11.75mm and it weighs around 34g. It contains a lithium-ion 100mAh battery.
Pros
- Supports a huge number of tokens
- Access to Ledger Live
- Low price for best safety
- Small and computer-friendly device
Cons
- Max storage for only 3 apps
2) Trezor Model T
The Trezor Model T is one of the most popular and best crypto cold wallets because it is packed with features. With this wallet, you can access third-party exchanges such as CoinSwith and Changelly directly from the Trezor internet interface. Its touch screen has been updated from the previous model and is easier to operate. The dimensions of this encrypted hardware wallet are 64mm x 39mm x 10mm and it weighs just around 22g.
With the box, you will also get 1 USB-C to USB-C cable, a Model T magnetic dock, 2x Recovery seed card, and one keychain strap. It also comes equipped with a 1 USB-C to USB-A to help you connect to a desktop computer and with Bluetooth connectivity to connect to a smartphone.
Pros
- Unlimited storage
- Ensures Password Safety
- Support over 1,800 tokens
- Network-isolated authentication
- Secure offline storage
Cons
- Touchscreen is small
- Security can be improved
3) Ledger Nano S
Ledger Nano S is another cold wallet offering from Ledger and it is one of the first cold wallets compatible with more than 1,800 tokens. The wallet has a robust 100mAh battery and is made from brushed stainless steel and plastic material. The dimensions of this wallet are 104mm x 58mm x 5mm and it weighs around 16.2g.
With the box, you get 1 hardware wallet, 1 instruction manual, 1 Micro-B USB cable, 3 recovery sheets, and 1 keychain strap.
Pros
- Offers maximum security and control over your funds
- Ease of use, powerful, and simple USB-style hardware drive
- Allows a 20-digit recovery phrase
Cons
- Not easy-to-use for beginners
- Offers only 18 applications
4) CoolWallet Pro
This DeFi-oriented mobile hardware wallet is one of the best cold wallets for crypto. The CoolWallet Pro doesn’t need an internet connection to connect to a device. It can connect to a device with an encrypted Bluetooth connection within 10 meters and can easily interact with NFTs, DeFi, and dApps. The cold wallet is completely water-resistant and tamper-free and comes with a lithium-ion battery, which lasts for several weeks on a single charge.
Additionally, the wallet offers multi-layer cold storage security with an AES256 encrypted Bluetooth Low Energy (BLE), EAL6+ secure element (SE), and five processors that regulate its power management.
Pros
- Encrypted Bluetooth connections
- EAL6+ secure element
- View, track, and exchange crypto from the wallet
- Supports crypto staking
- Easy integration with mobile devices
Cons
- Limited staking options
5) Safepal S1
Launched in 2019, the Safepal S1 supports more than 10,000 crypto tokens, 19 blockchains, and NFTs. It is one of the safest and best crypto cold wallets that is focused on providing simple, safe, and easy-to-use cryptocurrency management. To make the wallet even safer, you can use two-factor authentication, a recovery seed, and a pin code.
The wallet works absolutely fine in extreme weather conditions such as -4 degrees to 158 degrees Fahrenheit. With the box you receive a USB-A to Micro-USB cable, cleaning cloth, three recovery sheets, and a quick start guide. The battery on this wallet is 400mAh, which lasts for days.
Pros
- EAL 5+ independent secure element
- Affordable
- Multiple layers of security
- Has a self-destruct mechanism
- 24/7 community support
Cons
- Not a very portable
6) Keystone Pro
It is a completely air-gapped crypto cold wallet and it is equipped with open-source firmware, a four-inch touchscreen, and a fingerprint sensor. It also offers extra security in the form of PSBT Bitcoin, which safeguards against malicious attacks. With this, Keystone Pro has decreased the risk of malware. The hardware wallet is also BIP 32/39/44 compliant.
The wallet is made out of fiberglass and is completely waterproof. The dimensions of this wallet are 112mm x 65mm x 18mm and weigh around 115g. When you buy the wallet you get a AAA battery holder, charging cable, and rechargeable battery.
Pros
- Unlock the device with a fingerprint sensor
- Self-destruct mechanism
- Anti-tamper
- Provides a recovery phrase backup
Cons
- Doesn’t support coin swapping
To Conclude
In the age of rampant cyber threats, safeguarding your assets and investments has become more critical than ever before. When it comes to protecting your cryptocurrency investments, cold wallets are the ultimate solution. With their offline storage capability, cold wallets provide unparalleled security against hacking and theft, giving you peace of mind that your assets are safe.
If you’ve invested a substantial amount of money in cryptocurrency and plan to hold onto it for the foreseeable future, we strongly advise opting for a crypto cold wallet from the list mentioned above to ensure the security of your digital assets.
