Hardware wallet devices securely manage your coins, Bitcoin addresses, and private keys, keeping them offline. Even if your device is compromised by malware or has been hacked, your funds are safe and you can send and receive payments. You need to manually confirm transactions on these external devices and this ensures that no intruder on your computer can take over your funds.
The following manufacturers and devices have established themselves in the hardware wallet market in recent years. SatoshiLabs from Prague has been producing hardware wallets since 2014. Swiss Shift Crypto AG has been on the market with the BitBox since 2015. Canadian company Coinkite has been manufacturing the Coldcard since 2018 and Canada/USA based Blockstream's Jade is out since 2021.
I have tested and used all of the listed devices. The BitBox02 is my favorite. It looks like a simple USB device and offers many security features. The advantage of Trezor models (3, 5, 7) is their option to split the wallet backup into multiple 20-word shares, for enhanced security and resilience. The Coldcard is for tech-savvy users and the Jade not only secures Bitcoin, but also Liquid funds (Bitcoin's sidechain with improved privacy).
I do not recommend Ledger devices. The company has demonstrated a lack of trustworthiness over the years. They have experienced several data leaks, exposing thousands of customers' personal details.
Always buy hardware wallets directly from the manufacturer's website, their authorized Amazon store, or a trusted dealer. Never buy a hardware wallet from strangers on eBay, Amazon or second-hand. Verify that the device is sealed as described on the manufacturer's website. Most recommended devices have tamper-evident packaging to prevent tampering. Note that no manufacturer ships devices with pre-generated seeds; if you receive one, it's likely a scam and not safe to use.
During the purchasing process do not use your residential address or your real name! Instead, use a postbox, packing station, or other secure address to protect your private data. Use a disposable email address with a fake name and avoid adding your real phone number. Your data may leak and be associated with a Bitcoin wallet purchase. Crypto owners have been targeted in house invasions, robberies, kidnappings, even murder, forcing them to surrender their Bitcoin.
This is why KYC, "Know-Your-Customer" procedures where you need to verify your identity through facial recognition and uploading your ID to service providers is endangering Bitcoin users and why some refer to it as "Kill-Your-Customer" regulation. Since identity verification is not required for hardware wallet purchases, protect yourself by using a fake name.
When purchasing online, your payment data will be associated with the supplier. To protect your privacy, consider paying with Bitcoin or buying from a local dealer with cash. Bitcoin conferences also offer a private way to purchase hardware devices.
In addition to the device, the vendors provide wallet software to manage your coins on your computer or mobile. For privacy reasons, some users prefer to use the vendor's wallet only for initial setup and maintenance, such as recording their seed phrase (your wallet's recovery words) and updating firmware, and then use a more secure wallet like Sparrow or Electrum to manage their transactions.
This article appears in my Bitcoin book, which will be released in a new edition in 2026.
Based on: Daily, Learn Bitcoin, Tools, Wallets
The Bitcoin Whitepaper was published by Satoshi Nakamoto on Oct 31, 2008. Read and download it here.
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