Nowadays, there are many hardware wallets on the market. This can make it difficult to choose. This article shows you the advantages and disadvantages of every hardware wallet. We help you make sense of it all.
What is a hardware wallet?
A hardware wallet is a device which you use to store the private keys of your public (receipt) addresses, securely and offline. This is important because only the people who have the private key can access the cryptos in the respective addresses.
This offers the advantage that you yourself manage your coins and that you don't have to store them with a central party, like an exchange. You are your own bank. Plenty of exchanges have been hacked in the past. A hot wallet (on a phone or PC which is always running) is also riskier than a hardware wallet (cold wallet). A hardware wallet largely operates offline and has a security chip.
What should I be mindful of?
- How do you wish to manage your coins (computer or phone)?
- Would you only like to store bitcoin, or also other coins/tokens?
- Would you like to stake coins?
Important: safely store your backup
When you install your hardware wallet, you'll see a seed phrase, just once. This is usually a list with 12 to 24 words, which you should store correctly and in the right order. This will always give you access to your wallet. It is super important that you properly store it, because there is no one who can give you access to your wallets except you. In order to properly store the seed phrase, you can buy a Seed Backup. You should also write down the name of the brand and type of hardware wallet with your seed phrase. There may be differences in the way different hardware wallets generate the public keys (receipt addresses) from your private keys.
Best hardware wallets
We mention the advantages and disadvantages for every wallet. We also tell you the things which are "good to know", about every wallet. Here, we describe the points which can be an advantage or disadvantage, depending on personal preference.