Crypto Wallet

Best Crypto Wallets for 2022-2023

Today in 2021, there are an array of crypto wallets available for HODLers, but are they all equally safe? Better yet, is it safe to hold your coins on an exchange? By far one of the best ways to store your crypto is through cold external storage. This means an external device that plugs into your computer and allows you to store your cryptocurrency. When you are finished, you can simple eject your device from your USB port or adapter and you’re done.

What are Cold External Wallets?

A cold wallet is a physical device that keeps your crypto offline entirely. Other popular names you may have came across include “hardward wallet” or “cold storage”. Most crypto wallets resemble USB drives and by storing your crypto on these devices, it makes it very unlikely for hackers to get your holdings.

What are the benefits of an external wallet?

First and foremost, peace of mind. Especially if you plan to hold for  a long time (months, years, etc.). You are in full control of your crypto. Of course as the value of the wallet in question increases, the argument for external storage grows increasingly stronger. Someone who has $100 in crypto may not see the significance  of investing in a cold wallet as much as someone who has $10,000, $100,000, or more invested in cryptocurrency. Nevertheless, whether you have .0001 of a coin or 100,000,000, an external wallet is the safest way to store your crypto.

#1 Trezor Model One

Trezor.io store on Amazon

The Trezor Model one is a great introductory cold storage wallet for your crypto. The device itself is quite small being just a bit bigger than your average USB stick. There is an outer plastic shell that feels secure, but by no means is indestructible, so being careful with it at all times is important. Another attractive feature is the trezor model one stores over 1000 coins. I personally own a model one and I bought it 2 years ago right at the time when I decided I was going to start accumulating. Everyday, hackers are trying to find vulnerabilities in website security and you don’t want to be that person who left $5,000 or more sitting on an exchange when it got hacked. Often times, the behavior of exchanges can vary especially in times of bleeding markets. It’s always nice to know that your crypto is in your full control. From a functional standpoint, the trezor is a USB 3.0 it with your purchase you get a cable that will a connect your computer to your trezor. The onboarding is farily painless and the only real hiccup was I needed to download the trezor bridge, which you can find more starting here.

 

#2 Ledger Nano S

Ledger.com store on Amazon

The Similar to the Trezor Model one, the Ledger Nano S is a great introduction into cryptocurrency for those just getting serious.

What are the potential downsides external wallets?

When you first activate your wallet, you will receive seed phrase ranging from 12-24 words. It is always stressed that this (seed phrase) is never shared with anyone. It is also highly encouraged that you keep your seed phrase in a safe place. Your seed phrase is essentially a recovery phrase to restore your wallet should you ever lose or accidently break your external device. Scenario, let’s say you just bought $100 of Cardano (ADA) and you yourself decide you want to hold this for a few months. You just bought the Trezor Model T and you decide to store your cardano. Immediately after, in a flurry, finish up, pull out your USB and stuff it in your pocket. A few actions here, and another few there, you eventually forget it’s in your back pocket. From a here you could sit on a hard chair and break it, run your pants through the washer, or just misplace it altogether. The point is, if you have your seed phrase, no harm done. You can recover your coins. However, if you lost your seedphrase, you’ve lost your coins. As the saying goes, “Not your keys, not your wallet”. This is also a lesson of not sharing your seed phrase with others as anyone with this special code can essentially take full control of your wallet.

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