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@ Andy
2023-12-16 20:44:09In the evolving world of cryptocurrency, ensuring the security of your digital assets is paramount. For those looking to safeguard their Bitcoin and other cryptocurrencies, selecting the right hardware wallet is crucial. Here, I recommend some top choices based on functionality and security.
Swiss Choices for Bitcoin: BitBox02
For Bitcoin enthusiasts/maxis, the Swiss-made BitBox02 - Bitcoin-only edition is a top recommendation. This wallet focuses solely on Bitcoin, ensuring specialized security and features for the most popular cryptocurrency. Although there is a version supporting multiple cryptocurrencies, the Bitcoin-only edition stands out for its dedicated functionality (Less code means less attack surface, which further improves your security when only storing Bitcoin). Learn more about this wallet here.
Swiss Tangem: A Unique Approach
Another Swiss option, Tange. Tangem is particularly appealing due to its unique approach to security. With Tangem cards, there's no need to generate or back up a mnemonic phrase (a series of 24 words used to recover wallets). The key is simply not to lose the cards and remember the access code, which adds an extra layer of security in case of loss. This approach simplifies security while maintaining robust protection for your assets.
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Explore Tangem here.
Tangem's Mnemonic Phrase Advantage
Tangem's standout feature is the absence of the need for a mnemonic phrase. This reduces the risk of loss due to complicated backup schemes.
However, for those who do backup mnemonic phrases, I recommend using a metal plate for added durability against elements like fire and water. It's crucial to protect your mnemonic phrase thoroughly, as it essentially makes you your own bank. A fireproof and waterproof safe is advisable for storing these phrases. While some split the phrase and store parts in different locations, I advise against overly complicating the storage scheme to prevent loss. Adding an optional password for additional security is also recommended. Remember, mnemonic phrases unlock the same wallet addresses across different hardware wallets, as most use the BIP39 protocol for generating a seed from the 24-word phrase. Check out this list for reference: BIP39 Word List.
Worth reading: - Seed Phrases Explained: Best Practices for Crypto Security - How Tangem Wallet backs up private keys - How Your Tangem Wallet Works Without Tangem: Apocalypse Scenario
French Ledger: A Shift in Trust
The French Ledger Nano S Plus or Ledger Nano X were previously high on the recommendation list. However, trust in these devices has diminished due to Ledger's service Ledger Recover allowing mnemonic phrase backups on third-party servers. This goes against the principle of a hardware wallet, where your seed should never be exportable or stored externally.
Chinese Keystone 3 Pro: A Contender with Caveats
As an alternative to Ledger, the Chinese Keystone 3 Pro could be considered. Although there are concerns about its Chinese manufacturing possibly implying vulnerabilities, its functionality—like signing transactions via QR codes without direct computer connection—offers a level of security. However, choosing a hardware wallet should be based on the specific cryptocurrencies you plan to store. For Bitcoin-only storage, the BitBox02 Bitcoin-only edition is highly recommended.
Worth reading: - Does airgap make Bitcoin hardware wallets more secure?
Czech Trezor: Slow to Innovate and Security Concerns
Regarding the Czech Trezor Model T, it's not recommended due to its slow pace in integrating new features. Recent controversies surrounding the integration of CoinJoin and concerns over censorship and transaction filtering have also marred its reputation. Furthermore, the Trezor Model T has proven to be vulnerable in case of loss, as demonstrated by a hacker in this video, potentially exposing your cryptocurrency to risks.
The Case of Canadian Coldcard (MK4): A Shift from FOSS
An important development in the hardware wallet space is the case of the Coldcard Mk4. Initially, Coldcard was a fully open-source software (FOSS) project. In FOSS, the "Free" refers to the freedom to run, study, redistribute, and modify the software, a principle highly valued in the crypto community. However, a significant shift occurred in the journey of Coldcard:
- Initial FOSS and Bootstrapping: Coldcard, developed by nvk and Peter, started as a FOSS project. They bootstrapped the development, rejecting offers from venture capital investors interested in the project.
- Foundation's Entry: Subsequently, the Foundation cloned Coldcard's code and announced a slightly different hardware. Notably, they raised funds from the same VCs that Coldcard had previously turned down.
- License Change: In response to these events, Coldcard altered its software license. The new license permits all activities except those performed by the Foundation, marking a departure from its original FOSS status.
This change has sparked discussions within the cryptocurrency community about the importance of maintaining open-source principles in the development of hardware wallets. The Coldcard MK4's shift from FOSS underscores the complex dynamics between open-source ethos and commercial interests in the crypto world.
Source: X/Twitter thread.
Conclusion
In conclusion, when choosing a hardware wallet, consider the specific cryptocurrencies you'll be storing and the compatibility of the wallet with your intended use, especially concerning smart contracts and other features. While there are numerous options in the market, careful consideration of security features and the reputation of the manufacturer can guide you in making a secure choice for your digital assets.