You can store all your cryptocurrency in an exchange account, but is it really a good idea? Even if you are actively trading and regularly exchanging BTC to ETH, probably not. Cryptocurrency exchanges are often attacked by hackers and sometimes quite successfully. Having your own wallet is much safer and more profitable in terms of managing funds, since you do not have to pay additional fees.
Which wallet is better: software or hardware? Software repositories are downloaded to a PC or mobile phone, and when installing them, you will need to come up with a strong password and enable two-factor identification. So you protect your coins from possible access by third parties.
It seems that it is not necessary to purchase a hardware wallet. You can store funds in a software wallet for years, but still this method is not secure enough. First, it does not rule out key theft. Secondly, during an emergency evacuation, it is not always possible to save the device.
If you arrange the ways of storing cryptocurrencies in order of increasing reliability, the list will look like this:
- Crypto exchanges and cloud services.
- hardware devices.
Not a single case of theft of funds from a hardware wallet has been recorded so far. They are also not affected by malware and provide full control over the keys.
Let’s summarize the advantages of the device:
- High degree of protection against hacker attacks and various types of malware.
- The ability to always have the device with you.
- Maximum control over funds.
- Independence from third-party services and applications.
The disadvantages of hardware devices are rather relative. This is a rather high cost and the need to connect to the Internet for each transaction on LetsExchange or other services.
Ledger was founded in 2014. It now employs about 300 employees and has physical offices in several countries.
The company produces several models with different functionality. The base Nano S model supports Bitcoin, Litecoin, Ethereum, Ripple and some other popular cryptocurrencies. The device activation process uses the Ledger Live app. In it, you need to write down the seed phrase to restore the wallet.
The device connects via USB to a computer and is compatible with all popular operating systems. It has a small display and buttons to verify and confirm transactions.
- Compact and rugged body
- The keys are stored encrypted on the device itself.
- Device management is simplified by the proprietary Ledger Live interface.
- Large selection of supported coins, which is replenished periodically.
- Supports two accounts with individual passwords and PINs.
- A small amount of memory, which is enough for a limited number of blockchains.
- Difficulties with microtransactions.
The Ledger Nano X model is more advanced. It can store more different coins at the same time. In addition to connecting via USB, it is possible to connect via BlueZub.
There are no special differences in security parameters, but the Ledger Nano X is more convenient and more expensive.
The devices are manufactured by a company that was founded in the Czech Republic in 2012. The impetus for its creation was the theft of 3000 BTC from the software wallet of one of the founders.
Trezor One looks like a keychain or flash drive, but with a small display. The device supports Bitcoin and its forks, Ethereum and ERC-20 standard tokens, Ripple – about a thousand coins and tokens in total. It is activated using a proprietary application and connects to other devices via USB. Trezor One is compatible with Windows, Linux, macOS and Android.
- Ability to sign transactions offline.
- Multiple levels of access protection.
- Compatible with popular software wallets.
- Multilevel access protection.
- There have been precedents in history for the discovery of vulnerabilities.
- There are many fakes on the market.
The more advanced version of the Trezor Model T has a larger color screen and is equipped with a microSD card slot. The device supports about 1200 coins and costs much more than its predecessor.
A thin compact device looks like a bank card. To send and receive transactions, you will need to interact with the SafePal App by reading a QR code. The absence of physical contact with other devices provides an additional degree of protection.
It is one of the self-sufficient devices. It is completely isolated from other devices. For asset management, the device is equipped with a 4’’ screen. When an unauthorized intrusion is attempted, the device launches a self-destruct program. Therefore, initially it is worth taking care of a backup copy of the keys.
Cool Wallet Pro
Outwardly, it resembles a plastic card and supports more than 60 cryptocurrencies, including ERC-20, TRC-20, BEP-20 tokens. The data is displayed on an e-ink display. The device connects to a smartphone via Bluetooth. The security system uses military technology.