One of the best ways of protecting cryptocurrencies such as Bitcoin, Ethereum and Litecoin is to use a hardware wallet. These devices offer secure ‘cold storage’ that protects your wallet’s private keys from hackers or malware. In this guide, you’ll learn the key features and benefits of the three most popular cryptocurrency wallets: the Ledger Nano X, the Trezor Model T, and the KeepKey.

 

What are hardware wallets? 

Hardware wallets are physical devices that help protect your cryptocurrency. Each device can be used to store multiple types of cryptocurrencies on multiple wallets without revealing your wallets’ private keys, even if you make a cryptocurrency transaction online.

 

What are the advantages of using a hardware wallet?

As a rule of thumb, if you have more than a week’s wages in cryptocurrency, buying a hardware wallet is a worthwhile investment. Some of the main benefits include:

• Safety:Hardware wallets are considered to be the safest way to store cryptocurrencies.
• Privacy: Keep your wallet’s private keys secure.  
• Peace of mind: All devices offer a recovery option if they are ever lost or stolen.
• Note: It is advisable to buy hardware wallets directly from the official manufacturer and not through a third party as fake or compromised devices can be an issue.

#1. Ledger Nano X

The Nano X is the latest wallet from Ledger. It ensures that your private keys are never exposed as they are locked by a PIN code inside an isolated environment. The main advantage of the Ledger over other hardware wallets is that the Ledger’s operating system, BOLOS, is integrated into a secure chip, providing an extra layer of security.

 

Pros

• Secure OS: The Nano X is the only device on the market to have its OS integrated into a secure, CC EAL5+-rated chip. This is the same type of chip used in passports and credit cards and ensures that your private keys remain secure.
• Secure PIN: You can only access your accounts by entering your 4-digit PIN code each time you plug the Nano into a computer. The device is wiped after three failed PIN attempts.
• Private Keys locked in the device: Your wallet is decentralized, and the private keys are never known by Ledger or any third party.
• 100+ Apps: The Nano S supports a wide range of cryptocurrencies via Ledger Live and has storage for over 100 apps.
• Bluetooth® enabled:  The Ledger Nano X is the only bluetooth® enabled hardware wallet on the market today. This lets you connected it to your smartphone and safely transact anywhere, via the Ledger Live Mobile app.

Cons

• No password manager: Unlike the Trezor, the Ledger Nano X cannot act as a password manager.

Overall

The Ledger Nano X offers a highly secure and convenient way to store and transact with cryptocurrencies. It comes at an attractive price point, and Ledger offers free worldwide shipping, helping make the Nano X hard to beat.

 

#2. Trezor Model T

The Trezor Model T is a hardware wallet that uses cryptographic algorithms to keep your coins and tokens safe. Trezor Model T is Windows, OS X and Linux friendly with plug-and-play functionality.

 

Pros

• Community-driven and open-source:As Trezor is open-source, it is transparent and free from back doors. Any independent third party can audit Trezor and discuss technical decisions.
• Easy to use: Simply connect your Trezor Model T to the USB port on any computer and follow the instructions.
• Wide support: The Trezor Model T supports 1,071 coins and tokens including Bitcoin, Ethereum, XRP, Ethereum Classic, ZCash, Litecoin, Namecoin, Dogecoin, Dash and Testnet. They can all be stored on the same device.
• Anti-malware:The Trezor Model T’s full-color touchscreen prevents malware such as a keylogger virus from compromising your private keys.
• Password manager: The Trezor Model T can act as a password manager with encrypted storage on the cloud.

Disadvantages

• No Bluetooth® connectivity: The Trezor Model T cannot be used with Android or iOS devices as it isn’t Bluetooth® enabled.
• No isolated secure chip: While the Trezor Model T lacks a secure, isolated chip, it does offer encryption via GPG and SSH, making it extremely secure.

Overall

Trezor is one of the most popular and trusted brands with a strong following. The Trezor Model T is a premium device with many unique features such as a full-color touchscreen and the ability to act as a password manager.

 

#3. KeepKey

KeepKey is a USB device that stores and secures your Bitcoins. Every transaction is reviewed and approved via an OLED display and confirmation buttons. KeepKey comes with a recovery sentence backup card that lets you recover your device without exposing your private keys.

 

Pros

• Premium Design: The KeepKey has a large anodized aluminum body and feels and looks physically better than either the Nano X or the Trezor.
• Convenience: Well packaged with convenient storage solutions

Cons

• Fewer supported cryptocurrencies: KeepKey only secures Bitcoin, bitcoin cash, Ethereum, Litecoin, Dogecoin, Dash, and Namecoin.
• Less intuitive software and wallet interface: However, the forthcoming web-based interface ShapeShift platform may help improve usability in the future.
• Speed: The KeepKey team have been slower to react to hard forks in the past, and the interface software has typically updated more slowly than other wallets.  

Overall

KeepKey is a well-designed and worthwhile wallet with comparable protection to both the Trezor and the Ledger Nano X.  With the Bitcoin value increasing over time, make sure you are securing your Bitcoin and other cryptocurrencies.