In light of the high number of hacks in the cryptocurrency space, security has become the most important aspect of a cryptocurrency wallet. While design, user-friendliness, and the number of supported assets are considered important reasons for choosing a wallet, security outranks them all.
Not all wallets are created equal and there are clear market leaders when it comes to security. Decentralization, high-level encryption, PIN protected transactions, and HD addresses are some of the security features that the best cryptocurrency wallets deploy to keep their users’ funds safe.
In this article, you will be introduced to the top ten most secure crypto wallets so that you know which wallets you should be using to securely store your digital asset portfolio.
- Ledger Nano S
- CoolWallet S
- Bitcoin Armory
Founded in 2014 as Airbitz, this popular mobile wallet rebranded to Edge in 2017. The Edge wallet supports over twelve digital currencies and is compatible with both Android and iOS. It is easy to use and it has an inbuilt exchange function due to the implementation of Shapeshift.
Edge is considered one of the most secure mobile wallets and has never fallen victim to a hack. The Edge wallet gives users full control over their private keys as well as using zero-knowledge encryption. Moreover, Edge makes use of Hierarchical Deterministic (HD) addresses, which means that users can have more than one address on the wallet. Additionally, users are able to restore funds to their wallets using older seed phrases, reducing the chances of complete losses.
The Ledger Nano S is a well-regarded hardware wallet due to its strong focus on security and usability. Few wallets compare to it in terms of security. The wallet currently supports more than 39 cryptocurrencies as well as ERC-20 tokens.
The Ledger Nano S is a cold storage wallet. This means that it stores the users’ private keys offline. Additionally, its design makes sure that malicious actors are not able to access the seed phrases even when the device is connected to the Internet.
Trezor is another popular hardware wallet. It is actually one of the oldest hardware wallets in existence, having been launched in 2014. The Trezor wallet supports twelve digital currencies as well as ERC-20 tokens. Similar to Ledger Nano S, it has never been hacked.
The Trezor is secure because it operates on the ‘Zero Trust Approach’. This means that no application or client or other third party is able to access the private keys stored on the hardware wallet. Moreover, it features HD addresses, PIN protected transactions as well as recovery codes.
KeepKey is a hardware wallet well respected for its security features. Launched in 2015, the wallet supports over 45 digital currencies and tokens.
The wallet stores the user’s private keys in the physical device, allowing full fund control for the owner. The wallet provides a PIN code and recovery sentences. The user is also able to choose whether to activate a passphrase for transactions for enhanced security.
A fairly new wallet, the CoolWallet S is gaining popularity due to its sleek design and its adherence to strict security protocols. Launched earlier this year, the Taiwanese hardware wallet looks like a credit card.
The wallet currently supports five cryptocurrencies as well as ERC tokens. The user’s private keys are stored in the physical wallet and thus full control over the funds are retained by the user. The wallet works in conjunction with its mobile application and allows users to choose the length of their seed phrases for enhanced security. It has also never been compromised.
Bitcoin Armory is widely considered as one of the most secure bitcoin wallets. It is a desktop client and was the first ever cold storage wallet created for Bitcoin. It has never been hacked. However, it supports only Bitcoin.
The wallet features HD addresses, multi-signature facilities, with users having full control over their private keys. Additionally, Bitcoin Armory can support password protected transactions, providing a greater level of security.
The wallet utilizes the Glacier Protocol, which is considered the best standard for cold storage applications. Due to its high-level security features, however, this wallet might be too complex for beginners.
Founded in 2011, Electrum is a popular desktop wallet for Bitcoin. This wallet is popular because it is compatible with the hardware wallets such as Trezor and Ledger Nano S.
Moreover, Electrum features in-wallet encryption, Two-Factor Authentication as well as multi-signature capabilities. The private keys are stored on the user’s computer for enhanced security. Additionally, the wallet does not download scripts making it extremely difficult for hackers to gain access to the private keys.
Exodus is another popular cryptocurrency desktop wallet. It was launched in 2016 and supports 85 cryptocurrencies. The wallet ensures to store the private keys on the user’s device, thus users retain full control at all times.
Additionally, the wallet works on the HD protocol, separating funds in different addresses thus enhancing security. It is also possible to transact directly from the wallet, negating the need for connection to other less secure mediums.
Coinomi is a multi-asset mobile wallet that was launched in 2014. The application supports both Android and iOS and users can store over 500 cryptocurrencies on this easy-to-use mobile wallet.
The private keys on the Coinomi application are held by the user. Additionally, all IP addresses are designed to be anonymous, reducing the chances of malicious actors studying the actions of users and attempting to determine a vulnerability.
CoPay is a desktop and mobile bitcoin that supports multi-sig as well as HD addresses. CoPay is a popular wallet because it is easy-to-use and provides high-level security protocols to protect user funds.