Security should be the main focus when you start trading with cryptocurrencies. While blockchain technology represents one of the safest systems today, there are some issues with the platforms you will have to use to buy, sell, and store your digital assets.
Choosing a reliable and well-known online crypto exchange is important, but there are other guarantees that your assets will be safe. Even some of the most popular platforms had issues with cyber-attacks and millions of dollars’ worth of crypto stolen.
Several options are available for storing crypto, such as keeping them on the platform, using an online wallet, and using a cold wallet. The problem with the first two is the increased risk of cyber-attacks, while cold or hardware wallets represent the safest solution.
Many models are available, and Trezor is one of the most reliable brands. You should check the comparison of Trezor T vs Trezor One models. Also, here are some tips that will help you choose the right hardware wallet for your needs.
Available Cryptocurrencies
Types of cryptocurrencies you want to keep in the cold wallet are very important for selecting the right model. The reason is that not all models will support a wide range of cryptocurrencies. That can represent a crucial detail for investors interested in higher flexibility by trading with a wide range of crypto simultaneously. Of course, you can always get another hardware wallet in case the one you have does not support certain crypto, but managing multiple wallets at the same time can be a struggle.
A much better solution would be to get a model that will support all digital assets you want to trade with. We have to mention that Trezor Model T can be a great solution since it supports more than 1,800 coins. Ledger is also a great model, with support for more than 1,000 types.
Additional Features
Besides the support for multiple cryptocurrencies, we also have to mention that the memory and ability to install multiple apps are also very important features. You will need additional apps when you want to use crypto on your wallet, and different types require different versions of apps. Also, it is common that models with support for 50 or more apps can be much more expensive, which means that your budget represents an important factor as well.
If you are a beginner or someone not interested in storing a lot of different coins, more affordable versions like Ledger Nano S are the best option. When it comes to those who want to increase their flexibility, Ledger Blue provides enough space to install more than 100 apps.
Another feature that we have to mention is connectivity. The most common options are USB, Bluetooth, and QR codes. The first option is simple, while the other offers improved security and convenience. Moreover, there are models with screens where you can make some processes much easier.
Software
The selection of the software can affect different processes, starting from the storing of crypto, connecting the wallet to different devices, using crypto exchange services, and more. Your preferences are the key factor. Also, be sure to pay attention to security and stability.
Price
It can represent a crucial factor when choosing the right model since there are many models with different prices. Your activities should help you make the right choice. For example, suppose you are a more passive trader not interested in keeping many different options means that you should choose a more affordable wallet. Some more affordable models, like Trezor One, Safe Pal S1, or Ledger Nano S, are great solutions since they are all under $100. The cheapest model is Safe Pal, with a price of only $50.
On the other hand, if you need advanced features, improved capacity, and other options, you will need an improved and more expensive version like Ledger Blue with a price of over $300, Trezor T that costs $250, or Ledger Nano X. The interesting thing about Nano x is that it costs only $120 while sharing many features with more expensive models.
Should You Use Only One Wallet?
The opinions are different when it comes to the best solution. Using a single wallet with a lot of advanced features is quite convenient since you will hold all data in one place, which will make it easier to trade and make fast actions when needed. On the other side, it can be safer when you decide to have more than one wallet.
We all know that convenience can help us in trading, which is especially important for day traders. However, with increased risks related to security, it seems that choosing different cold wallets and use them at the same time can bring more benefits.
First of all, when you store all of your assets on a single device, there are other risks besides cyber-attacks. For example, someone might steal it from you. Even though there are security protocols that will prevent the thief from getting your funds, you won’t be able to recover them as well without the wallet. The same is if you lose it.
In that matter, be sure to keep your wallet in a safe place, and use more than once for different purposes. For example, you can have one wallet where you will keep those options that you want to hold until they reach a higher price. On the other side, you can have another one that you will use more often, such as for day trading.
The Bottom Line
The key feature of hardware wallets is advanced security that is significantly improved when compared to online wallets. The only challenge can be related to more effort that will be required to use this option. However, you won’t have to worry about losing your assets in some hacker attack.
Your preferences and selected crypto are the most important details to use when choosing the right model of hardware wallet, along with the price and additional features.