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Security is of the utmost importance in the world of cryptocurrencies. Because cryptographic assets are digital, methods for safeguarding resources must also be digital. Just as a physical portfolio stores paper currency, a digital wallet It is designed to store cryptocurrencies.
Unlike a physical portfolio, which can contain any currency as long as it is paper, a portfolio of cryptocurrency can not store all cryptocurrencies. Each cryptographic portfolio has its own unique range of cryptocurrencies with which it is compatible. This means that if a cryptocurrency is sent to the wrong wallet, the amount sent is lost forever.
There are 5 different types of cryptocurrency portfolios.
Apart from the hardware portfolios, there are web portfolios (e.g. MyEtherWallet is Metamask), mobile wallets (e.g. Jaxx, Coinomi, mycelium, Bread), desktop portfolios (e.g. Exodus, Atomic wallet, Bitcoin Core) and paper wallets (which are basically a print of the wallet and private key address).
Why you should use cold hardware / wallets
Also known as "cold wallets", hardware portfolios offer the best method to safeguard cryptocurrencies because they store cryptographic assets offline and literally put them in the hands of their owners.
Other types of portfolios are subject to hacking, phishing and damage that can easily lead to loss of funds. While people may choose other types of cryptocurrency wallets that move or exchange frequently, hardware portfolios are ideal for long-term archiving.
Hardware portfolios are devices designed to securely store users' private keys. Most seem like a USB stick and can be accessed via the desktop app.
Today there are several hardware portfolios available. Organized in a particular order, here are the 5 best cold wallets to safely store your cryptocurrencies.
The 5 best cryptocurrency storage portfolios
Ledger Nano S
Ledger Nano S is a USB-sized device (shown above), with a metal casing for added durability. The design is simple and compact and has a very easy to use interface. The device works via Ledger Live, a desktop app that allows interaction with the device.
The Ledger Nano S supports over 1,000 coins and tokens, including Bitcoin, Ethereum, Ethereum Classic, Litecoin, Ripple, Dogecoin, Zcash, Dash, as well as many Token ERC-20. The Nano S can interact with online portfolios like MyEtherWallet, Mycelium e copper alloy.
The notable advantage that Nano S has over other hardware portfolios is the number of coins and tokens it supports and its extremely portable size.
Ledger Nano S is very safe from hackers because the physical buttons to be used for each transaction to be executed, and has an anti-tamper function that checks the integrity of the hardware portfolio every time it is turned on.
Here is a video on how to set up and use the Ledger Nano S:
ledger, the company behind this device, has been around since 2014. They use an open source code and have demonstrated stability despite the wide swings of the cryptographic market.
The Ledger Nano S is currently priced at around $ 99.99.
Trezor Model T
The Trezor Model T is a second generation hardware portfolio of SatoshiLabs, after the first hardware portfolio released by Trezor, the Trezor One.
Trezor One is designed to store multiple cryptocurrencies offline in an easy-to-use format with 2 buttons and a screen. The T model is an update of Trezor One, eliminates the 2 buttons and becomes a color touchscreen.
While Trezor One is already comparable to Ledger Nano S, the Model T is designed to be more secure with PIN input, passphrase and device reset on the device (and not on a computer or mobile phone).
Trezor Model T is equipped with a magnetic dock (for safe security). It also has a seal that lets you know if the device has been compromised. The T model supports over 700 coins, with notable absentees being EOS and Tron. The T model supports Ripple (its predecessor no) but does not yet have an active portfolio for this.
Here is a guide on how to use the Model T:
The Trezor Model T is currently valued at around US $ 170. It is considered of premium quality compared to Trezor One, which supports almost the same number of coins and is currently valued at around $ 80.
Keepkey
Launched in 2015, Keepkey is different in form and slightly larger than Trezor and Ledger (as you can see above). Keepkey is a Hierarchical Deterministic Wallet (HD), which makes it optimal for generating and storing an unlimited number of keys.
Keepkey supports 54 coins, which includes Bitcoin, Ethereum, Litecoin, Dash, Dogecoin, Bitcoin Gold and several ERC-20 tokens. The wallet has a desktop client app that is used to interface with the wallet. The wallet has a large screen and requires no technical knowledge to use.
Here is a video on how to use Keepkey, based on the step-by-step guide from the company:
The hardware portfolio is currently priced at $ 129 and considered suitable for beginners or people who can be overlooked with a USB-sized hardware portfolio.
Coldcard
Coldcard is a Bitcoin hardware portfolio that signs transactions and can be used offline.
It has some special features such as the ability to use it offline for the entire life cycle, is protected by a cryptographic chip and accepts MicroSD for easy backup. The software is open-source, which means that you can modify it according to your tastes if you understand blockchain programming.
However, the most amazing feature of the device is that it does not require any specialized apps or software to run on computers and smartphones. It works like an external storage device and transactions are performed by dragging files in and out of the wallet.
Another feature of the portfolio is the functionality of the secondary portfolio.
This creates another key, allowing another wallet on the same device. This is useful in case of theft or situations in which the owner is under duress. Cryptocurrencies in the main account will remain secure, while those in the secondary portfolio may be sacrificed for the current situation.
The Coldcard currently has a value of US $ 69.94 and can be purchased through the Coinkite shop. However, it is important to note that Coldcard only stores Bitcoins.
Bitfi DMA-2
The Bitfi hardware wallet is a research product on the best (or perfect) way to protect cryptocurrencies.
Bitfi supports a number of cryptocurrencies as a token Bitcoin, Monero, Litecoin, Ethereum, NEO and ERC-20. Other cryptocurrencies are also taken into consideration for the portfolio.
When new cryptocurrencies are added, the user simply sees it on the wallet. The wallet does not require updates or downloads.
Here is the main advantage of the Bitfi portfolio: while the other cold wallets store their private keys on computers and the Internet, the Bitfi portfolio does not store private keys anywhere.
This means that if the hardware portfolio is stolen or seized, the resources in it can not be extracted. Instead of storing private keys, the Bitfi portfolio calculates the private key using the algorithm each time the user types the passphrase.
The hardware also comes with a large color screen that makes it easy to use. The use of the device platform is comparable to the use of an e-mail platform. If the device is seized or lost, users can purchase a new device and continue using their original secret phrase, or use Bitfi open source tools to recover their private keys and access the funds.
Bitfi is managed by a single passphrase, which will be easy to memorize. A second request is also required, such as phone number or e-mail, to ensure that no two people have the same sentence.
Here is a video on how to set up the Bitfi wallet:
The Bitfi portfolio currently has a price of US $ 120.
Conclusion
When cryptocurrencies are purchased in the long term, it is important to store them correctly.
Cold wallets are the best way to store them in this way, with the least risk of compromising your account by third parties. Each cold wallet has its advantages and its peculiarities, hence the importance of choosing the one that best suits the user's wishes.
The hardware portfolios discussed above have a consolidated user base and generally meet their design expectations. If you have a large amount of cryptocurrencies that are not traded frequently, it is prudent that you have at least one of the hardware portfolios mentioned.
What is your favorite cold wallet to store your scrambled? Share with us in the comments below.
