Cyber threat is a fundamental reason why some prospective cryptocurrency investors are apprehensive about investing in digital assets.
Cold wallets are created to solve this challenge and safeguard crypto investors' investments. These digital wallets are designed for storing cryptocurrencies on non-internet-enabled platforms to protect the asset from cyber hacks and unauthorized access.
This makes investing in the right wallet for safekeeping your cryptocurrency a necessity. It's a surefire way to ensure that your investment is secure.
If you’re having a hard time choosing the best cold wallets to store your digital assets, here are some options to check out:
- Ledger Nano X
Ledger Nano X is arguably the most famous and safest cold wallet for storing digital currencies safely. It is the preferred choice for most cryptocurrency investors who leverage embedded security technology to keep their assets safe.
The top-tier USB-style cold wallet allows users to store their security keys for over 5,500 NFTs and crypto assets. It also boasts Bluetooth functionality that enhances its operations while its compatibility with iPhone and Android devices ensures maximum portability.
The portability comes in handy for users to exchange, manage, or buy digital assets on the go. Ledger Nano X users can trade or secure their digital assets conveniently from their mobile devices.
Thanks to the incorporated Ledger Live software, users can check their balance as well as send and receive any of the over 1,800 supported tokens and coins.
Pros:
- It supports a large number of digital assets.
- It supports thousands of cryptocurrencies.
- The wallet is computer friendly.
Cons:
- It doesn’t offer unlimited storage capacity.
- Trezor Model T
Trezor is another reputable cold wallet with an incredible storage capacity. The cold wallet is compatible with some third-party exchanges such as CoinSwitch and Changelly.
As an encrypted hardware wallet, Trezor is equipped with an easy-to-use touch screen for a wide range of users, new crypto dealers and users inclusive.
The wallet boasts multisig or multisignature capabilities that provide an extra layer of protection to boost the wallet’s overall performance and security.
If you want to operate anonymously during transactions, this hardware wallet allows you to anonymize your transactions through its Trezor Suite interface.
Pros:
- It supports over 1,400 cryptocurrencies.
- It comes with a web-based user interface for the best performance.
- Expandable storage.
Cons:
- More expensive than a Ledger wallet.
- Atomic Wallet
With an estimated over 4 million users across the globe, Atomic Wallet is undoubtedly one of the most popular and best cold wallets for storing cryptocurrency safely.
Atomic Wallet is a software wallet that is compatible with iOS, Android, and Windows devices. The decentralized storage device gives investors absolute control and ownership of their digital assets.
This software-based wallet is the best alternative option for crypto investors who don’t need a physical wallet to keep their investments safe.
This wallet is also great for investors who want to diversify their portfolios because it supports thousands of digital currencies such as ADA, XRP, and a host of others.
It also comes with an in-built cryptocurrency exchange that supports swift crypto selling and buying. Users also stand a chance of earning a 1% cashback on purchases done via the wallet.
Pros:
- It supports multiple platforms.
- Users have absolute control of their assets.
- Attractive cashback.
- In-built exchange.
Cons:
- High exchange fees.
- Not as secure as hardware cold wallets.
- Exodus
Exodus is a unique cross-platform hardware wallet for desktop and mobile users. With an attractive user interface and a built-in exchange, it has some features that make it one of the best cold wallets for storing cryptocurrency safely.
Exodus users can take advantage of its swapping feature to swap over 250 digital currencies, a feature that comes in handy for crypto investors who want to diversify their portfolios or beginners trying their hands on crypto.
The Exodus team has an excellent support system to help beginners find their way around the wallet as well as attend to their needs without delay.
While the hardware wallet is designed for beginners, experienced crypto holders can also take advantage of its security system to securely hold their digital assets.
Pros:
- An easy setup process.
- It has a built-in exchange.
Cons:
- It is a closed-source wallet.
- There’s no 2FA security measure.
- SafePal S1
SafePal S1 is considered the best budget-friendly hardware wallet. The cold wallet was developed by Binance Labs, the parent company of the popular Binance cryptocurrency exchange.
In line with Binance, this cold wallet provides users access to tons of crypto assets and allows users to store thousands of cryptocurrencies on 54 blockchains.
The hardware wallet is secured internally with the Secure Element chip found in Ledger hardware wallets. Its legendary security reputation notwithstanding, the security technology is affordable.
For just $49, you can own this cold wallet and store over 30,000 digital assets in it safely.
Pros:
- It is affordable.
- It supports 54 blockchains and 15 languages.
- The cold wallet is equipped with a self-destruct mechanism, a defensive mechanism against malware attacks.
Cons:
- The activation process is reportedly difficult.
- It doesn’t support Litecoin (LTC), Tron (TRON), Monero (XMR), and some other major cryptos.
Keeping your digital assets in cold wallets is one of the best ways to ensure their security. Above are some of the tested and proven cold wallets for storing cryptocurrency safely.
Go through each of the reviewed cold wallets and compare their features, pros, and cons and choose the most appropriate one for your cryptocurrencies.
Storing your digital assets offline is a protection against cyber threats and other vulnerabilities that may otherwise cost you your investment.
Conclusion
Using the best cold wallets for storing your cryptocurrency safely is one sure way to keep your assets from the prying eyes of potential hackers. The little amount of money you spend on purchasing the cold wallets is worth the price.
However, investing in wallets alone is not enough to keep you away from crypto related troubles. One of such troubles you must avoid at all costs is tax related issues. No matter your country of residence, you need to understand what the crypto tax laws are all about and how to handle them.
Koinly is a crypto portfolio tracker and tax calculator you can easily use in determining the amount of tax due from your crypto assets. With the software, you are able to link your various crypto wallets and automatically calculate the percentage to pay in crypto tax, and pay your taxes promptly.
