A hardware wallet is a device designed to protect the private keys used to approve cryptocurrency transactions. In plain terms, your crypto remains on the blockchain, while a hardware wallet holds the keys that let you access it.
The main differences between wallets are which coins they support, how they connect to your phone or computer, and how you check and approve a transaction. This guide explains those differences and what they mean when choosing a wallet.
How we assessed these wallets
Cointelegraph tested Trezor Safe 7, Ledger Stax, Flex, Nano Gen5, Nano X, Nano S Plus and Coinkite’s Opendime. Testing used smartphones and computers running both Linux and macOS operating systems, with both third-party and official software. The Opendime was used as cold storage; the others were used to test both simple transactions and decentralized application interactions. All the other models covered in the article were reviewed based on publicly available information alone.
The review units were supplied to the author of the article free of charge by Ledger, Trezor and Coinkite at our request to be able to review the devices. No compensation or promise of positive coverage was made to any of the companies.
What hardware wallets protect
A hardware wallet keeps transaction signing separate from your phone or computer. This lowers the risk that malware on either device can steal your keys, keeping cybercriminals from accessing your digital assets.
Most hardware wallets also feature a screen, allowing you to verify transaction details on the wallet itself. This means that if the smartphone or computer the wallet is connected to displays incorrect information in order to trick you into signing a malicious transaction, you still have an opportunity to catch the issue before signing the transaction.
However, the protection has limits. The wallet must show enough information for you to understand what you are approving. You can still lose funds by approving a scam transaction, exposing your recovery backup or using vulnerable wallet software.
Your recovery backup needs protection, too. Someone who obtains it may be able to restore your wallet and access the funds.
Hardware wallets for multiple cryptocurrencies
If you hold more than one cryptocurrency, start by checking whether a wallet supports your coins and the networks you use. Also check which features work through the manufacturer’s app and which require another app.
The table below covers the multi-asset versions, and all specifications come from the manufacturer’s documentation.
Multi-asset hardware wallet comparison table. Source: Cointelegraph
Ledger hardware wallet lineup. Source: Ledger
Ledger’s Stax, Flex, Nano Gen5 and Nano X connect through Bluetooth or USB.
The Stax has a 3.7-inch E Ink touchscreen that curves around the front and one side of the device. The Flex and Nano Gen5 have flat, rectangular 2.8-inch E Ink touchscreens.
The Nano X has a smaller, 1.1-inch OLED screen and two physical buttons. Its folding metal cover gives it a shape similar to a USB flash drive.
During Cointelegraph’s testing of each Ledger device, we found that the Stax — the most expensive option in the lineup — appears to have lag issues, which were confirmed by the manufacturer to be a consequence of the wraparound screen used for the device.
This was perceived as input lag that resulted in repeatedly entering the wrong PIN and having to input the numbers much more slowly than with other devices. For this reason, we advise against this particular device, having found the cheaper touchscreen models to provide a much better user experience.
The Trezor Safe 7 is a color touchscreen hardware wallet with fully open-source software, whereas Ledger uses certified secure element chips that legally prevent Ledger from open-sourcing a portion of its software.
Their practical features are more or less the same, with wide third-party software support, support for thousands of digital assets and dedicated management software for both computer and mobile devices.
Trezor Safe 7. Source: Trezor
The BitBox02 Nova Multicoin is a Bluetooth-capable general-purpose hardware wallet with capacitive controls over an OLED display, compatible with all major platforms. It also allows users to back up private keys onto a microSD card — the first device we discuss to do so. That card needs to be stored securely and separately from the device.
BitBox02 Nova Multicoin. Source: BitBox
The SafePal X1 stands apart from the others we covered so far with its full keypad, simple monochrome interface and low-cost Bluetooth connectivity. This hardware wallet offers wireless connectivity at a particularly low price while still supporting over 200 blockchains. Usually priced around $70, through Changelly’s wallet marketplace, it’s currently available for $29.99, about 57% below its usual price.
SafePal X1. Source: SafePal
Next come the wired general-purpose hardware wallets. In this category sit Ledger’s Nano S Plus,…
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