10 Best Cold Wallets for Cryptocurrency Storage in 2024

The cryptocurrency landscape is often compared to the untamed frontiers of the Wild West, where markets fluctuate wildly depending on the latest news and revolutionary technologies emerge with startling frequency.

The protection of your digital assets from attackers takes a central place in this volatile world. Fortunately, specialized facilities called wallets have been developed to protect users from these threats. Such a wallet can be of two types: hot and cold. It is the latter that we will focus on in detail to discover the best cold wallet for crypto in 2024.

Introduction

A cold wallet is an indispensable accessory for a modern person living in a world of electronic payments. In the digital era, when the protection of private financial data and virtual assets is of vital importance, a cold wallet fulfills a significant function by preserving cryptocurrency keys and information offline, eliminating threats of hacker onslaughts and online fraud.

Understanding Cold Wallets

A cold wallet is a storage of keys to access cryptocurrency assets that do not need a constant Internet connection. It can be a flash drive or even a regular piece of paper. A paper wallet is completely free and all you need is to create keys with the help of the integrator site, print them out, and hide the sheet in a safe place. As for a flash drive, you just need to save the corresponding files to it. Taking into account that, such wallets are not quite protected, and a paper wallet is sensitive to water and sunlight modern crypto traders prefer hardware crypto wallets. These special gadgets look like a flash drive, a car keychain, a small remote control, or a phone. They provide the highest degree of security due to a security chip, as well as additional mechanisms and procedures. The main function of hardware wallets is to store access keys. However, developers have gone further by adding the features of crypto exchange and staking of unclaimed coins. 

Pros and Cons of Cold Wallets

The key advantage of a cold wallet is to ensure maximum safety of cryptocurrency. A wallet on a medium disconnected from the Internet ensures that the savings are de-risked. Cold wallets provide a higher level of storage rampart than hot ones because only the wallet owner has access to the private key. Owners of hot wallets often become victims of hacking by criminals, which is why all exchanges and large companies store crypto assets on cold wallets. 

The disadvantages of cold wallets include slower transaction speed and less convenience for inexperienced users. Setting up a cold wallet requires technical knowledge and can be time-consuming. Disadvantages may also include high traffic consumption during operation and high cost. In addition, for a cold wallet to remain secure, it must be kept offline at all times, therefore if a user ever wants to access their funds, they will have to manually connect the wallet to the network every time they want to make a transaction. A cold wallet is commonly used for long-term storage of cryptocurrency, this type of storage is not suitable for regular cryptocurrency transactions due to multi-stage access systems.

Cold Wallet vs. Hot Wallet: Which Is Right for You?

The fundamental discrepancy between cold and hot wallets is the network liaison and the way of the private key storage. Often hot wallets are implemented as a web application, so that a client goes to the site, enters a username-password, and accesses the account. Internet access is required to work with such a wallet. The user creates a wallet in the program and the service “assigns” the wallet address back to him. How the keys are created is not visible. The actions take place on the server of the wallet developers. Criminals can hack the servers, “take out” the keys and assign cryptocurrency.

The best wallets are created open source and are audited. However, this won’t protect assets if fraudsters have gained access to a customer’s account.

Cold cryptocurrency wallets, including hardware wallets, generate keys “in-house”. The private key is not used on another device without the user’s knowledge. This strengthens protection against password leaks, account hacking, and accidental compromise.

Hot wallets simplify access to assets coins can be sent in two or three clicks. In addition, the user can log into a hot wallet from various devices. A cold wallet is tied to a specific computer or a phone.

Therefore, in the crypto world, it is generally accepted that cold wallets are for long-run storage, while hot wallets are for regular use of cryptocurrency (trading, payment for services, transfers to friends, etc.).

The Top 10 Cold Wallets in 2024

Quite a few companies are producing cold wallets for cryptocurrency, however, we’re going to take a look at the 10 best cold wallets for crypto in 2024.

Ledger Nano X

It is one of the topmost popular cold wallets with proven bulwark. The device has everything you need to organize offline storage of cryptocurrencies. It is the successor of Ledger Nano S, offering several improvements in terms of features and functionality. For example, the layout supports more than 5,500 coins but gives the ability to manage also NFT is equipped with Bluetooth and can store up to 100 applications simultaneously. This wallet conjoins to both Android and iOS. Among the disadvantages is the vulnerability of the storage to external factors: mechanical impact, fire, etc.

Ledger Nano S Plus

Ledger Nano S Plus has the same functionality as its predecessors, including an expanded memory, a larger screen, and a more pleasant design. The following operating systems are supported: Windows, Linux, and macOS. It is considered a budget model, which is almost in no way inferior to its more expensive version, i.e. Ledger Nano X. From the disadvantages we can point out the small size increases the risk of losing the wallet, as well as cases of hacking the asset management software.

Tangem

Tangem Wallet is a plastic card and has IP68 protection, which means it is waterproof. To perform any manipulations, you will need to hold the card to your phone, having previously installed the app, and set up the wallet. To use the wallet you do not need to constantly enter the private key, it is enough just to have the card with you. Newbies will find it convenient to use the wallet as asset transactions can be done from the app. Tangem Wallet supports DApps. Since the wallet is a plastic card, it does not require charging. Among the pros are its low budget, support for almost all blockchains and coins, and the ability to connect to hot wallets. Among the disadvantages is the lack of an application for PC and this wallet does not work with NFT.

Trezor Model T

This is another mainstream cold wallet with a simple interface and connivance for over 1,800 tokens. It features a touchscreen, microSD card slot, and cid-recovery for added security. It offers unlimited and offline wallet storage having such a drawback as a high price and a small touchscreen which is difficult to type on.

Trezor One

Trezor One is a hardware wallet designed for the secure storage of cryptocurrencies. It has been on the market for several years and has earned a reputation as one of the best cold storage wallets and a trustworthy device. It is not the most technologically advanced, but still an effective model of a cold wallet from a reputable manufacturer, which is suitable for beginners who want to get a simple cold wallet. The main disadvantage is that the button control scheme is not the most convenient when the touchscreen cools down. Among the advantages is its support of a wide range of cryptocurrencies.

SafePal S1

The developers of the wallet have gone in the direction of full offline, thus reducing the risks of working with the device to a minimum. The SafePal S1 hardware wallet supports AirGaped (camera and display) transaction technology. The device cannot be connected via Wifi, Bluetooth, or cable to a PC or other devices, which ensures fully autonomous storage of private keys. Among the disadvantages is the low level of distribution of such wallets. This wallet is the choice of those who want to minimize the risks associated with online access to coins at an attractive price. The storage offers several levels of security sensors and supports multiple coins.

KeepKey

This is an easy-to-use cold wallet that supports numerous cryptocurrencies. It features a large LED display, PIN code, and cid-restore feature. It also has its own dApp Store that provides access to various decentralized features. At the same time, the large size, small number of available cryptocurrencies, and low level of technology were its main drawbacks. In addition, there is no version for PC and smartphones and the wallet does not support NFT. In turn, the device is suitable for those who do not plan to carry the wallet with them all the time.

CoolWallet Pro

CoolWallet Pro is a mobile cold wallet that helps you easily connect to your device without the need for an Internet connection via an encrypted Bluetooth interconnection within a 10-metre radius. It offers easy interaction with DeFi, Dapp, and NFT. Its case is tamper-proof and fully waterproof, while its lithium-ion battery provides a single battery charge that lasts for weeks. This is one of the best crypto cold wallets that offers multiple layers of cold storage security. It supports all major virtual assets including such protocols as DeFi, NFT, DApps, airdrops, and much more. The wallet surpasses most competitors by the number of inbuilt functions.

Bitbox02

BitBox02 is a compact, easy-to-use hardware wallet that supports over 1,000 cryptocurrencies. It features a touchscreen interface, a microSD card slot, and a password manager. With this device, users can also connect to the Ethereum ecosystem and use various applications, such as NFT exchanges, coin staking, or cryptocurrency trading. On the plus side, it offers high security, including two-factor authentication and a microcontroller with built-in physical security mechanisms that make it difficult to counterfeit or access your private keys. BitBox02 is relatively easy to set up and use, even for beginners. BitBox02 is small enough to fit in your pocket and can be easily carried with you wherever you go. It is compatible with a wide range of operating systems, including Windows, Mac, Linux, Android, and iOS. On the downside, users noted that BitBox02 is quite expensive.

ELLIPAL Titan 2.0

It is the world’s first cold air gap wallet that provides complete network isolation. This advanced hardware storage is completely self-contained, with no modules such as WiFi, USB, NFC, Bluetooth, or cellular, and works 100% offline. It interacts with the device via Air-Gapped technology. The design of ELLIPALTitan 2.0 and the technology of protection against unauthorized access effectively neutralize any physical and digital threats. In case of an attempt to tamper with the device hardware, all information will be deleted, leaving a warning on the device display. It supports more than 10,000 tokens and offers fast and accurate backups. Among the main disadvantages is its bulky size.

Why Use a Cold Crypto Wallet? Benefits Explained

Cold wallets are particularly suitable for those who want to safely store digital assets for the long term. They are an investment with prices starting at $50, justified by the security they provide for storing significant amounts of cryptocurrency. The initial cost is balanced by the certainty that your assets are protected from online threats.

The Internet is a breeding ground for malware and viruses that target financial assets. By storing the access keys to your digital assets in a cold wallet, you remove them from the reach of online threats. Since blockchain hacking is virtually impossible, cold wallets protect against malware and virus attacks through online channels.

Cold wallets are not limited to storing only cryptocurrencies. They protect anything that can be represented on the blockchain, including certificates of ownership, tokens, artwork, and NFTs. This makes cold wallets an excellent choice for protecting valuable blockchain-based assets as long-run investments.

Understanding the potential for loss, cold wallet providers often offer comprehensive backup and recovery solutions, sometimes superior to those available for hot wallets. This emphasis on personal responsibility ensures that, in the unfortunate event of an accident, mechanisms are in place to recover your assets.

Cold wallets allow offline transactions, providing a secure and confidential way to transfer assets without the oversight of tax authorities. This method dates back to the oldest forms of commerce and is ideal for confidential financial activities or significant cash gifts.

How Cold Wallets Work

To sign transactions, cold storage uses private keys within an autonomous environment, i.e. even when conducting certain transactions, the wallet remains isolated from any other access points and does not allow interaction with other devices unless it is directly connected to them through a special port.

Any transaction you conduct online is temporarily placed either in the offline wallet of such a gadget or on a hard drive or any other memory device. There, the transaction is signed and only then transmitted to the network. Thanks to this algorithm, the private key does not interact with the server used for signing, so no hacker can access it. However, this has its own costs, for example, the time-consuming nature of such transactions: if a hot wallet takes a fraction of a second to perform operations, in the case of a cold wallet it will take at least several minutes.

Let’s say you are an investor with tokens on a hardware wallet, but you need to make a transaction, thus you:

• connect your cold wallet directly to your laptop and then to the Internet.
• choose a method to receive the tokens. In response, your wallet generates a transaction address for you.
• initiate a token transfer to this address with a couple of mouse clicks.
• switch off the hardware wallet with the public and private keys stored on it. The information is also saved offline.

What happens when you put your cryptocurrency on your cold wallet? It is retrieved from your hot wallet, i.e. the wallet of a particular platform. You still see it on your online platform, which means you can easily track your balance, but you can’t use your transferred koins on the cold wallet until you move the keys again.

Cryptocurrencies Supported by Cold Wallets

Cold wallets can store almost all types of cryptocurrencies. Some wallets work with several dozens, hundreds, or even thousands of coins, while others are designed to store only one specific currency. Make sure the wallet you choose supports the cryptocurrency you need.

Today, more and more developers offer programs and devices for storing not one but several cryptocurrencies at once. Therefore, it can be difficult for a beginner to choose a suitable cryptocurrency wallet among hundreds of offers.

How Many Cryptocurrencies Can You Store in a Cold Wallet?

The best cold crypto wallets offer a huge range of coins, and the undoubted leader in this one is SafePal S1. It supports more than 10 thousand tokens. But, for example, Trezor One cannot boast such an extensive list.

In addition, NTFs are now growing in popularity. If you are their holder, pay attention to whether the gadget supports their storage. If you choose Trezor One, this will be difficult, but a number of devices included in our review of hardware wallets have this feature. Up-to-date lists of supported coins should be found on the official websites of wallet manufacturers. By the way, developers can expand the range from time to time.

Conclusion

Cold wallets are a relatively safe way to store cryptocurrency. With cold storage, keys are created in a “trusted environment”. Attackers have no chance of intercepting the key. Hardware cold wallets are not suitable for regular transactions – the wallet will have to be constantly connected and disconnected from the PC. A reasonable way out is to distribute cryptocurrency on 2-3 crypto purses. Cold storage is better for long-term “hold”, a hot wallet refers to transfers to exchanges, and a mobile wallet is useful for “everyday” transactions.

FAQ

How do I back up my cold storage crypto wallet?

Common causes of cryptocurrency forfeits are related to the loss of classified keys or access to online wallets. Cold wallets prevent such situations, as private keys are preserved on- device. You can back up your keys and store them securely offline, giving you the ability to regain access to your funds if your wallet is lost or damaged.

Are cold wallets completely secure?

Retaining cryptocurrencies in cold wallets is much safer than in the case of hot wallets because cold purses are reliably protected from badware and intruders. They use a multi-stage security system. So, to enter the device, you need to enter a PIN code. If a user forgets the password or the wallet was stolen and it is necessary to restore access to the assets, a seed phrase is required, i.e. a special key of 24 words, which the system asks to write down when activating the device. Seed-phrase should never be given to anyone or photographed and stored online. Security experts recommend writing it down on paper and keeping it in a safe place.

How do I choose the best cold wallet for my cryptocurrency?

Which cold wallet to choose, and what criteria to follow?

Do you plan not only long-term conservation but also periodic replenishment and other operations? In this case, you have to discard mobile or hardware wallets. For sophisticated use or professional activities, a software wallet is the right one for you. Do you want to leave your coins as a legacy? You need a paper wallet in the form of a coin or a plate.

If you prefer not to overpay but need a reliable and convenient option you can create a cold wallet on a USB stick or simply download the keys to an external storage device.

Disclaimer: Please keep in mind that the content of this article is not financial or investing advice. The information provided is the author’s opinion only and should not be considered as direct recommendations for trading or investment. Any article reader or website visitor should consider multiple viewpoints and become familiar with all local regulations before cryptocurrency investment. We do not make any warranties about reliability and accuracy of this information.