Best Altcoin Hardware Wallets 2022
How to make crypto trading more convenient and protected? Find the best altcoin hardware wallet for your crypto funds and ensure safe altcoins storage and secure operations with them.
What Is an Altcoin Hardware Wallet?
An altcoin hardware wallet is a physical carrier used to store private keys to the acquired altcoins offline. It also serves to receive and send cryptocurrencies.
How Does It Work?
A hardware wallet for altcoins keeps your coins' private keys in offline mode, which makes them inaccessible to digital theft or other threats. The device itself is secured by specialized firmware and a PIN code set by you. What is more, the gadget prevents physical theft as well because it will erase all the information stored after several failed access attempts.
In addition, every hardware wallet has a special recovery phrase, which is also called a recovery seed. This function allows recovering the private keys to your crypto funds in case the device is lost.
To start using your hardware wallet, it is necessary to connect it to your computer is necessary. The computer interacts with the wallet, sending altcoins transactions to the carrier to be signed and then returning them back.
It is essential to mention that a hardware wallet for altcoins does not store the digital money itself. All the coins always stay on the blockchain they belong to. The wallet stores only the private keys, allowing managing your crypto funds. A private key is a critical piece of information used to authorize transactions on the blockchain network. It gives access to the private address on the blockchain where your coins are stored.
Advantages over Other Types of Wallets
There are two types of altcoin wallets:
Hot wallets are connected to the Internet, which makes them convenient for conducting transactions. However, precisely this feature makes them highly vulnerable to hacker attacks.
Hot crypto wallets are divided into two groups:
The most famous example of software wallets is MetaMask, while the Binance exchange is often praised for its integrated solution.
The peculiarity of software wallets is that they give you a private key and complete control over your funds, but the key and the wallet are located online. So, they are vulnerable to digital theft.
Crypto wallets hosted on exchanges do not even give users access to the private key. So, your crypto funds are under the control of the exchange.
The second type, a cold wallet, is not connected to the Internet, which excludes the risk of cyberattacks.
There are two examples of cold wallets:
Of course, the latter is an optimal option for crypto traders because of its versatility. A hardware crypto wallet is a reliable device that ensures security for your funds and easy transactions. This type of altcoin wallet allows you to keep your private key offline. Moreover, only you have access to the key.
How to Choose a Good One
The market offers multiple options for storing your crypto funds. To choose the best hardware wallet for altcoins, it is necessary to pay attention to various factors. Three of them are the most important to consider.
Different hardware wallets offer different security features. So, firstly, define what protection level you are looking for. In addition, note that it is better to choose products developed by authoritative companies which have positive reviews from real users.
Quality of Work
Takes into account the warranty period and the device's capacity. If you plan to engage in active trading, you need a powerful device. Moreover, choosing a wallet that eliminates the risk of delays and slowdowns in work is necessary, especially during transactions.
Compatibility with Your Coins and Operating Systems
Unfortunately, most wallets are not compatible with each and every available cryptocurrency. So, consider which currencies you have and plan to buy and find an appropriate wallet. In addition, pay attention to the compatibility with the operating systems you use because, for example, there are a lot of devices designed for iOS gadgets only.
Best Hardware Wallet for Altcoins
The following list of the best altcoin hardware wallets includes products developed by established companies. Some devices are appropriate for beginners, while others are more suitable for experienced crypto traders.
Ledger Nano S
The wallet results from cooperation between a French startup and the respectable company Ledger Wallet. The gadget is batteryless and can be connected to a PC and any mobile device through USB. It comes with a tamper-proof seal and a 4-letter PIN code. A seed phrase for the wallet is set offline, eliminating the risk of hacker attacks.
Ledger Nano S supports such currencies as Bitcoin, Ethereum, Dogecoin, Litecoin, Dash, etc. Many users believe it to be the best altcoin hardware wallet on the modern market.
Ledger Nano X
The updated version of Ledger Nano S offers even more convenience and flexibility. Thus, the gadget looks like a small flash drive with a weight of only 34g. Users do not need to use wires to connect the wallet to their computers or smartphones, thanks to Bluetooth. In addition, its battery allows the device to work for 8 hours without recharging.
Ledger Nano X supports such currencies as Bitcoin, Ethereum, Litecoin, Polkadot, Monaro, Dash, Cardano, and other coins popular on the DeFi market.
Trezor Model One
The wallet is designed by SatoshiLabs. Launched in 2014, Trezor was the first safe hardware wallet for bitcoins. The device has a form of a compact calculator and is connected to a computer or a laptop via USB. Trezor Model One generates keys offline. The recovery seed has 24 words and 9-digit PINs, which makes the protection of your funds one of the most reliable.
The wallet is compatible with Android devices and TREZOR WALLET, Multibit HD, and Mycelium apps.
The gadget deserves the title of the best altcoin hardware wallet because it offers a great security system. Trezor T prevents all hacking attempts by establishing a waiting time after every incorrect attempt. Each attempt doubles the waiting period. Thus, making 30 incorrect guesses requires 17 years.
Trezor T is suitable for Android devices and TREZOR WALLET, Multibit HD, and Mycelium apps. The wallet creates an isolated space for secure offline transactions.
The wallet was presented in 2015. It provides a 12-word recovery seed code and a PIN. It is possible to use KeepKey even on infected or hacked devices. However, KeepKey has a larger size than most other wallets, which doesn’t make it the most convenient option.
The device is compatible with Bitcoin, Litecoin, Ethereum, Dogecoin, Dash, OmiseGo, etc.
This top altcoin hardware wallet can be connected to any iOS and Android gadget via a dedicated app due to the Bluetooth technology. It is a compact model of only 65g, while its button boasts a guaranteed lifetime of 100.000 clicks.
CoolWallet S provides a unique military-grade Secure Element (SE) chip, which ensures a high level of security.
It is possible to use the device without installing any special apps, as it works via a browser. Prokey Optimum allows creating and signing transactions right inside the wallet. Its weight is only 16.7g, and it is connected to various devices with USB cables.
This best altcoin hardware wallet is designed for Android, Linux, Windows (7+), and Mac (10.8+).
Is Hardware Wallet Necessary?
If you are serious about investing in cryptocurrency, you need to adopt a special approach to the matter since traditions of dealing with fiat money do not work for digital coins. Both storing altcoins and crypto trading have their peculiarities.
A cryptocurrency hardware wallet is not just a perfect option offered by the crypto community. It is a necessity for every crypto trader who wants to ensure safe and comfortable trading.
Of course, it is possible to buy, sell, and store your assets without choosing any variant from the list of the best hardware wallets for altcoins. However, the wallet is what really can reduce the risk of altcoins theft. It is a must if you do not want your efforts and investments to go to waste.
What to Know Before Buying a Hardware Wallet for Altcoins
You need to understand that a hardware wallet for altcoins is not a magic device, which can guarantee 100% protection for your crypto funds forever. Of course, it reduces risks of crypto funds loss but cannot exclude them.
As a hardware wallet is a physical device of small size, there is always a risk of losing it. However, the loss is not a cause for panic if you are properly prepared. Your crypto funds are still safe, and you have your special seed phrase, which plays the role of password. So, just buy a new wallet and enter your seed phrase to get access to your funds again.
Although a hardware wallet, as a type of cold wallet, is not connected to the Web, there is still a minimal risk of a cyberattack. It is better to use Two-Factor Authentication to protect all accounts you use for trading and avoid funds theft.
How to Keep Your Wallet & Altcoins Safe
Follow the tips below to keep your altcoin hardware wallet safe:
Pros and Cons of the Best Altcoin Hardware Wallets
There is no doubt that a hardware wallet is the best solution if you are looking for the safest method to store your crypto funds. The device reduces the risk of crypto theft and allows for convenient and safe transactions.
As the market offers multiple versions of wallets, consider such factors as quality of work, security, and compatibility with platforms and coins you are interested in before the purchase. Choosing a certified provider is also a smart way to go.
The prices for the best altcoin hardware wallets may seem high, but it is better to pay a reasonable price once than to lose all your funds because of the lack of protection.
Frequently Asked Questions
What Is an Altcoin Hardware Wallet?
A cryptocurrency hardware wallet is a physical device created for offline storage of a private key to acquired crypto funds. It also allows sending and receiving altcoins.
What Is the Best Hardware Wallet for Altcoins?
The list of the best altcoin hardware wallets in 2022 includes Ledger Nano S, Ledger Nano X, Trezor Model One, Trezor T, KeepKey, CoolWallet S, and Prokey Optimum.
What to Know Before Buying the Best Hardware Wallet for Altcoins?
Before buying a hardware wallet, it is necessary to pay attention to its quality, functionality, security features, and compatibility with your coins and operating systems.