Best Bitcoin Wallet – Offline
TOPICS COVERED IN THIS ARTICLE:
Hot Wallet: Definition
Offline Wallet Defition
Ledger Nano S Review
Advantages and Disadvantages vs Hot Bitcoin Wallet
Looking for the best bitcoin wallet? Offline wallet use is a hot topic in the Bitcoin investing space. Bitcoin wallets are a must for anyone that invests in Bitcoin or altcoins. Traders need wallets for day to day use in addition to their normal buying and selling capabilities with a bitcoin exchange. Wallets provide safety for investments.
Cryptocurrencies quickly become one of the hottest investments in modern wealth management. Due to the irreversibility of their transactions, securing them is one of the most important things to think about when investing serious amounts of wealth.
There are a variety of wallets, often termed as hot and cold as we cover more in depth here. It is also important to be able to denote the difference between Hardware wallets and hot wallets when it comes to bitcoin investing.
TYPES OF BITCOIN WALLETS
- Offline Hardware wallets
- Hot wallets
HARDWARE WALLETS VERSUS HOT WALLETS
A Hardware wallet is a physical device built for the sole purpose of protecting your Bitcoins from hackers. Hardware wallets must be connected to your computer before you can have access to spend your Bitcoin and their access is limited. Hardware wallets are designed to run offline, protecting your private keys from vulnerable, internet connected devices. They function in a secure offline environment. Even when the device is plugged into a computer infected with malware it has no effect due to the security of the device. Some popular examples of hardware wallets include; Ledger Nano S, Trezor and Keepkey.
If you are investing big into Bitcoin and you are concerned about a secure and reliable way to store your Bitcoin investment, then hardware wallet is for you.
Bitcoin is a digital currency and cyber hackers are likely to find and target any software-based storage and steal your Bitcoin. They do this by accessing your pin or key. By using the hardware wallet, a hacker will have to steal your hardware device to get at your Bitcoin stash. Even in the event that they do gain access to your personal device, a Personal Identification Number (PIN) code are required to access your funds.
Even in a case where your hardware gets damaged or stolen you are protected. As long as you have created a secret backup code, you can always recover your Bitcoins. Pretty secure and ultimately very cool, right?
If you have a significant investment in Bitcoins, you should consider getting a hardware wallet.
PROS OF BITCOIN HARDWARE WALLET
- The easiest way to store a large amount of bitcoins.
- They are easy to use, even for a new investor who doesn’t understand technology.
- They are secure and easy to back up even in the case of theft or damage.
CONS OF BITCOIN HARDWARE WALLET
- They cost money compadre.
The hot wallet is a Bitcoin wallet that runs on internet connected devices. Computers, tablets and phones are popular access points for Hotwallets.
A hotwallet generates a private key. These keys are generated online and through an internet connection. We can’t depend on ultimate security of Hotwallets, but their encryption is quite heavy. With anything digital though, smart crooks will always attempt to access the loot of your investment.
Hot wallets have great functionality when it comes to digital investing. They make money management easy and you can easily transfer your cryptocurrency investment from account to account based on exchange and investment need. They simply fall short in terms of ultimate security.
One has to be safe with so many exchanges seeing hacks. ReviewCryptoCurrency always urges safety and the use of an offline hardware wallet for storage in non-investing periods. Hotwallets should only carry your “checking funds.” This gives best functionality and peace of mind.
PROS OF HOTWALLET
- It is convenient to send and receive payments.
- Some hot wallets give room to access funds across multiple devices.
- They are easy to use for the storage of bitcoins in small quantity.
CONS OF HOTWALLETS
- They are not safest for secure storage of large amounts of Bitcoins.
After reviewing the benefits and downfalls of Hotwallets and Offline hardware wallets, it is clear that a combination of the two is best for ultimate functionality. We cover many bitcoin exchanges and our top selections here if you are looking for an exchange/hotwallet setup with Coinbase or Coinmama.
There are a variety of hardware options on the market. The most popular options are Ledger Nano S, Trezor, KeepKey. Making a choice between the top options can be difficult. Let’s look more in depth at the most popular options for offline wallets. Each offers a different sent of functionality and uses that may fit each customer differently. With any luck, you’ll feel more comfortable in making the choice that is right for you.
Keepkey is a hardware wallet that works with all kinds of different cryptocurrencies and has a sleak and compelling design. When I look at it, it oozes class more than the other options in the cryptocurrency hardware wallet space. With both a basic and gold edition, it caters to those who like nice things. I’m one of those people.
KeepKey has an OLED display on which every transaction must be individually approved by the owner. It is known for clarity and double checking. When a bitcoin enters or leaves your account, it’s going to take two to three levels of certification, which makes it wonderful if you’re looking for safety.
KeepKey is also known to be malware proof. Viruses and malware are known to run on key loggers. The device doesn’t have any key loggers, making it completely secure and private.
In addition to Bitcoin, KeepKey offers offline hardware wallet storage for Ethereum, Litecoin, Namecoin, Dogecoin, Dash, and Testnet. Reading these, it is clear I have more articles on Altcoin to write!
Keepkey offers backup and recovery capabilities by utilizing a onetime key setup. Much like one password and other password safeguarding programs, this one-time key can be used to recover your device and bitcoins if it is lost and/or stolen.
PROS OF KeepKey
- It supports the use of multi-currency
- OLED screen is nifty and sleek.
- Multiple options, including sweet gold design.
- Password and account recovery avaialable.
CONS OF KeepKey
- New to market without as many reviews to back it.
LEDGER NANO S:
The Ledger Nano S was released in August 2016 by one of the first to market Bitcoin security masterminds. It comes equipped with a screen and two side buttons. It costs $79-$100 typically. It is available now on Amazon Prime.
In addition to Bitcoin, ledger supports litecoin, Ethereum, and a number of other altcoins which are to be added in the futre.
Ledger Nano S abides by the same encryption laws as some of the top providers you and I use in everyday technology. They support FIDO two factor authentication that is the same used by Google, DropBox, and Dashline. It isn’t as secure as KeepKey which uses a further enhanced recovery system. The Ledger Nano S doesn’t boast the same type of capabilities there.
The Ledger Nano S connects to any computer USB and the display on the OLED screen helps to verify each transaction before it is carried out.
The ledger is shaped like a USB and it is compatible with every modern-day computer. The exterior of the ledger has a protective metal casing to prevent damage. Curious about what to expect when purchasing the Ledger? The box contents include the following;
PROS OF LEDGER
- It supports the use of multi-currency
- OLED screen display which allows you to check every transaction.
- Being the cheapest hardware wallet available, it is quite affordable.
- Boasts of an advanced passphrase.
CONS OF LEDGER
- Since it is relatively new, It has not achieved same market credibility like its predecessors.
Trezor was launched in August 2014 as the first Bitcoin hardware wallet. It offers secure transactions but also adds the capability to spend bitcoins with the convenience of a hot wallet.
The device comes in a plastic casing and looks a bit like a fitbit or the old digital pet handheld devices we had as a kid. Check out the comparison pictures below to see what I’m talking about. It is available on Amazon Prime in Gray, Black, and White and runs anywhere from $70-$150 based on seasonality and product availability.
I’m not the biggest fan of Trezor’s design. This is one of the reasons I list in third. It’s just not physically beautiful. I want my wallet to look cool, and Trezor looks a bit antiquated when compared to its competitors.
Trezor boast the same FIDO/U2F security as Ledger and also is quick and easy to setup. It is rated 4.3 stars out of 5 by Amazon customers.
Trezor works with cryptocurrencies other than Bitcoin. Ethereum, Ethereum Class, ZCash, Litecoin, Namecoin, Dogecoin, Dash, and Testnet all are compatible with the product.
One of the greatest strengths of Trezor is that it is compatible with computers and mobile devices alike. It is also versatile in the operating system it supports. Linux, Windows and Mac Operating system all are backed by the device’s capabilities.
PROS OF TREZOR
- It has a password
- It offers a continuous
- Recovery on Trezor can be done with another wallet such as Electrum.
- The screen offers extra protection and verification.
- Easy to use.
- It’s available on Amazon.
CONS OF TREZOR
- If you are on a budget, the price tag may be too high for you. It is typically $70-$150
It is quite difficult to categorically say which is the better hard wallet because the Trezor and the Ledger are both well known for the security they offer, they will both definitely give you your money worth, but your personal preference boils down to your budget and the currency they support, the look or design you prefer. I personally love KeepKey, so if you want, send some love their way in exchange for safety.
Happy investing and good luck out there!