The main benefit of cryptocurrencies is that they are decentralized by nature, meaning that no one has control over your coins if you don’t want to. However, this can also become an issue as safely storing your holdings can be quite difficult.
Most cryptocurrency beginners opt for simply using a reputable exchange like Coinbase or Binance to store their coins. Unfortunately, this option is definitely not the best when it comes to security. Many exchanges have been attacked and hacked in the past. Even if it is a secure option, it’s not flexible as not all coins will be listed on all exchanges.
If you are looking to store your ERC-20 tokens in a secure location, Binance or Coinbase might simply not even have them. So what’s the alternative? Hardware wallets.
What is a hardware wallet?
A hardware wallet is specifically designed to store cryptocurrencies in a secure way. These wallets store your private keys and protects them from hacks and attacks from the Internet. There is obviously still some risk as you could lose your hardware wallet, but they still provide the best security for normal investors.
Although there are many hardware wallets currently available, we will only list the most popular ones.
Ledger is by far the most popular option and it offers several models for its clients. The main benefit of this wallet is that it supports ERC-20 tokens and offers a 24-word recovery phrase in case you lose your wallet or someone steals it.
The price of the Ledger Nano S is currently €59 and it’s the lightest version. It allows up to 20 apps to be installed on the device and has 1,100+ compatible cryptocurrency assets.
The Ledger Nano X allows up to 100 apps and has a bigger screen and battery. It costs €119 at the time of writing.
The first model is for average investors and supports more than 1,000 different cryptocurrencies. The main difference between this one and the Trezor Model T is that the latest one offers support for coins like XRP, EOS, Cardano, or Monero as well as all the other coins. The PIN, passphrase, and device recovery only happens on Trezor and they are not available via computer or mobile.
The Trezor wallet also allows users to exchange and trade their cryptocurrencies thanks to a built-in exchange. Additionally, Trezor plans to add another feature soon to allow customers to cash out their profits by selling Bitcoin and other coins and receive their preferred currency directly in their bank accounts.
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Disclaimer: The authors of this website may have invested in crypto currencies themselves. They are not financial advisors and only express their opinions. Anyone considering investing in crypto currencies should be well informed about these high-risk assets.
Trading with financial products, especially with CFDs involves a high level of risk and is therefore not suitable for security-conscious investors. CFDs are complex instruments and carry a high risk of losing money quickly through leverage. Be aware that most private Investors lose money, if they decide to trade CFDs. Any type of trading and speculation in financial products that can produce an unusually high return is also associated with increased risk to lose money. Note that past gains are no guarantee of positive results in the future.
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