The Best Cold Wallets in 2023

Author: Decentralized Dog

Compiler: Dalin Think Tank

A Controversy Over Cold Wallets

Recently, a new feature released by a cold wallet has attracted widespread attention.

It is reported that this feature is a subscription-based key recovery service based on ID. The service divides the wallet's mnemonic phrase (key) into three parts (using cryptographic sharding technology) and distributes them to three custodians: the cold wallet company, a crypto asset custody company, and a code custody company. If someone loses their key, two of the three shards can be combined to regain access to the locked funds. The subscription price for this service is $9.99/month.

However, some users have expressed concerns that splitting the private key among third parties could lead to its leakage, undermining the ultimate purpose of cold wallets. Additionally, if users utilize this service, they need to provide real-name authentication to the company, which some believe violates the privacy value of digital assets.

Critics have also raised concerns about the security of this cold wallet, citing a data breach incident in 2020 that exposed the emails of nearly 10,000 customers. Although no wallets were leaked, this incident has raised questions about the company's security.

This controversy has sparked curiosity among many about digital asset wallets. So, what types of digital asset wallets are there? What is a cold wallet? What cold wallets are available on the market? This article will take you into the world of cold wallets.

Note: This article does not constitute and should not be viewed as any opinion or advice for purchasing products.

Table of Contents

1. What is a Digital Asset Wallet?
2. What is a Cold Wallet?
3. Why Use a Digital Asset Wallet?
4. Differences Between Cold Wallets and Hot Wallets
5. Popular Cold Wallets

• Ballet RealBitcoin
• Ledger Nano X
• Trezor Model T
• CoolWallet Pro
• KeepKey
• Ellipal Titan
• Safepal S1
• SecuX V20
• Keystone Pro

1. How to Choose a Wallet?

What is a Digital Asset Wallet?

Unlike traditional wallets, which mostly carry cash, bank cards, and other physical items, digital asset wallets are storage devices for digital assets.

Our digital assets are stored on the blockchain, and only the private key can help us access them, so the private key represents ownership of the digital assets in the digital wallet. Therefore, ensuring the security of the private key is crucial. If the private key is lost, you will lose all assets in the wallet.

Currently, digital asset wallets mainly come in two forms: hardware wallets, also known as cold wallets; and software wallets, also known as hot wallets.

What is a Cold Wallet?

A cold wallet, also known as cold storage, is typically a physical device that protects assets from unauthorized access, meaning it is stored offline. Cold wallets are generally considered more secure than hot wallets because hot wallets are connected to the internet, posing a risk of hackers stealing private keys. Cold wallets are usually hardware devices that resemble a USB drive or other physical devices.

Why Use a Digital Asset Wallet?

Digital asset wallets are considered a secure choice for self-custody by digital asset holders.

Self-custody is crucial for the security of digital assets, allowing asset owners to have complete control over their own digital assets and avoid the risks of storing digital assets on centralized trading platforms.

Typically, holders store their digital assets on a centralized trading platform because they trust third parties to ensure the safety of their assets at all times. However, various incidents over the past year have shown that centralized trading platforms are not secure—referencing the bankruptcies of companies like FTX, Celsius, and Voyager.

By self-custodying your digital asset private keys, you can store, send, and receive digital assets without needing permission from others.

Additionally, through complex passwords and other security measures, such as two-factor authentication (2FA), these settings can ensure that the asset owner is the only one able to access these funds, preventing asset theft on trading platforms.

Differences Between Cold Wallets and Hot Wallets

Hot wallets require an internet connection and do not need to switch between offline and online modes to execute transactions. Users are generally advised not to store large amounts of digital assets in hot wallets.

On the other hand, cold wallets are specially manufactured hardware devices designed to store various digital assets in physical form. A significant advantage of cold wallets is that they store private keys offline in a more secure environment. These wallets are typically small and portable.

Popular Cold Wallets

Despite recent controversies, it is still necessary to delve into some of the popular cold wallets currently available on the market, listed in no particular order.

Ballet RealBitcoin RealBitcoin is the flagship product of BalletWallet and is the world's first non-electronic physical wallet for storing digital assets. It supports all tokens on chains such as Erc-20, Trc-20, and Bep-20, with support for over 200 mainstream tokens, and this number continues to grow.

The RealBitcoin hardware itself contains no electronic components and is made from pure steel.

RealBitcoin uses the BIP38 protocol, employing dual-factor private keys instead of traditional mnemonic phrases, and features tamper-proof designs to avoid receiving second-hand or counterfeit products.

RealBitcoin is equipped with an application software—Ballet Crypto, which does not store assets or private keys but is mainly used to monitor assets and conduct digital asset transactions. The software does not require account registration or monthly fees.

Ledger Nano X Ledger's second-generation cold wallet is called Nano X. It supports over 5,500 digital assets, including Bitcoin, Ethereum, and Cardano, through the integrated Ledger Live platform, which adds support for other digital assets annually at user request.

The Ledger Nano X connects to a computer via a USB cable and also supports Bluetooth technology for connection to Android and iOS mobile devices.

The Ledger Live software is directly integrated into the Nano X cold wallet, helping users manage all their digital assets through its simple user interface.

Trezor Model T Trezor Model T is the second-generation wallet of the brand, similar to Ledger but with an added feature—it allows users to access third-party trading platforms like Changelly and CoinSwitch from the Trezor website.

The Trezor T features a touchscreen and includes a MicroSD card port for encrypting the PIN, ensuring the wallet is protected from online attacks.

Exclusive security features of Trezor T include Shamir backup, which can create up to 16 private key shards for asset recovery in case of device issues.

When using Trezor Model T, you can also use Trezor's QR button to view the QR code of the address, which can be scanned by the other party to initiate a transfer to you. Once the payment is processed, it will be listed on the transaction page.

CoolWallet Pro CoolWallet Pro is a new cold wallet focused on DeFi, launched in May 2021. It has the shape of a credit card and features encrypted Bluetooth communication, along with access to DeFi.

CoolWallet Pro is equipped with a striking e-ink screen for intuitive data viewing and a recessed button to confirm all transactions.

CoolWallet Pro is the third product in the CoolWallet series, dating back to 2016, catering to DeFi users who wish to utilize their assets for PoS (Proof-of-Stake) networks.

In addition to the existing mainstream product lineup, Pro also supports assets on Polkadot (DOT), Cosmos (ATOM), Tron (TRX), and TRC20, BEP-20 assets on BNB Smart Chain, ETH, Cardano (ADA), and NFTs.

KeepKey KeepKey is a pen drive-shaped cold wallet, significantly larger than other well-known digital asset wallets, but this does not hinder its use; setting it up and conducting digital asset transactions remains convenient.

KeepKey can be set with a password to prevent physical theft.

KeepKey uses offline cold storage technology to store your public and private keys and utilizes backup mnemonic phrases in case your KeepKey is lost or damaged.

KeepKey operates in conjunction with the ShapeShift asset exchange platform, allowing for trading of various assets.

The software for KeepKey is fully open-source, and you can view it on GitHub for cross-verification.

Ellipal Titan Ellipal Titan features a 4-inch color touchscreen for easy setup and monitoring of all real-time transactions.

Ellipal Titan does not use USB or Bluetooth to sign transactions; the Ellipal APP only uses QR codes.

The design of the Ellipal Titan circuit board prohibits all connections, including Wi-Fi, Bluetooth, and mobile phones.

Ellipal Titan has a tamper-proof self-destruct feature that protects your device from online and offline attacks. If it detects forced intrusion, it will destroy all information (private keys) contained within.

Safepal S1 The SafePal S1 cold wallet was launched as early as 2019. It supports 54 chains and mainstream digital assets, including NFTs.

SafePal incorporates several features and security elements for safety, including recovery seeds, two-factor authentication (2FA), password settings, and private key deletion pools.

The SafePal S1 has a minimalist appearance, resembling an MP3 player, with two unique seals on the tamper-proof packaging. It features a fairly large color screen, a QR code scanner, and a D-pad controller for wallet navigation.

SafePal also comes with SafePal wallet software, which you can use to monitor your digital asset balance and conduct digital asset transactions.

SecuX V20 SecuX V20 is one of the very popular cold wallets in the SecuX series.

SecuX V20 has a 2.8-inch color touchscreen display and a 6000mAH battery for offline/disconnected operation, lasting about 7 hours.

SecuX V20 connects to hosts via USB or Bluetooth and can be used on desktop computers, laptops, iPhones, iPads, Android smartphones, tablets, or Chromebooks.

SecuX V20 features a CC EAL5+ certified secure element chip from Infineon. It can achieve complete offline data protection through low-energy Bluetooth connectivity.

The QR code feature in the SecuX V20 wallet allows for simple fund transfers and transactions on the wallet device.

Keystone Pro Keystone Pro (formerly known as Cobo Vault Pro) is equipped with a four-inch touchscreen and open-source firmware with a fingerprint sensor, supporting PSBT Bitcoin multi-signatures to enhance security against malicious attacks.

Keystone is a hierarchical deterministic (HD) cold wallet that complies with BIP 32/39/44 standards. By integrating QR codes for signing, Keystone reduces the risk of malware intrusion and enhances visibility.

The wallet battery of Keystone Pro is removable, and both the Essential and Pro versions are compatible with AAA batteries, while also equipped with a rechargeable battery.

How to Choose a Wallet?

For those who interact frequently, hot wallets are simple and convenient. However, if you are more concerned about asset security, cold wallets are the preferred choice; of course, different cold wallets also suit different usage preferences.

Whether it is a cold wallet or a hot wallet, the ultimate goal is to store assets and protect asset security. Therefore, from this perspective, Ballet RealBitcoin, Trezor Model T, and SafePal are all good choices.

Overall, a good cold wallet should be easy to use, and the storage of private keys should not be overly complicated; otherwise, security may be compromised. Most cold wallets have electronic components like displays and chips, which also face issues of damage and repair, so the manufacturer's after-sales service support is particularly important.