What is the Best Crypto Hardware Wallet?

When it comes to hardware wallets, Coldcard is often considered the most secure option. Seedsigner is a close second for its innovative airgapped solution. Jade offers excellent value and usability. Passport is criticized as just a copy of Coldcard. And Ledger once dominated the market but has lost trust due to multiple issues.

We Say “Doesn’t Matter, Use Multisig”

Rather than relying on any single hardware wallet or crypto custodian, no matter how trusted or audited they may claim to be, the most secure solution is multi-signature (multisig) wallets. By requiring more than one signature to authorize transactions, multisig minimizes the risk from any single point of failure.

Even the most secure hardware wallet could have an undiscovered flaw or supply chain compromise. And centralized exchanges have proven time and again they cannot fully safeguard funds, either due to hacks, mismanagement, or outright fraud.

So don’t fully trust any one entity. Verify through distributing trust across multiple signing devices and parties via multissignature wallets.

What Is a Multisig Wallet?

Multisignature wallets require more than one private key and adds a layer of security to cryptocurrency asset storage.

Cryptocurrency communities have long been known for being passionate about their favorite tokens and projects. One longstanding debate in the crypto community that has been known to cause friction even among specific communities: hot versus cold crypto storage.

For the hot storage camp, the convenience, low costs, and ability to contact customer support makes hot storage the most favorable to them. Cold storage supporters, on the other hand, will rally about their method’s security using the old adage: “not your keys, not your crypto.” While cold storage offers increased security from traditional hot storage wallets, there’s often a legitimate need to keep some crypto online. Further, “not your keys, not your crypto” solutions can get difficult when it’s not a single person’s crypto that needs to be safely stored, but a business or group that needs accessible funds while still keeping assets safe.

What Are Multi-Signature Wallets?

Multi-signature wallets are a type of cryptocurrency wallet with additional security settings that is typically used to require two or more people to authorize an outgoing transaction. Sometimes called “multi-sig,” these wallets are most useful when cryptocurrency or other digital assets are owned by multiple individuals or are held in custody by a company.

These cryptocurrency wallets take more technical knowledge to set up and use than a traditional crypto wallet, which only requires one signature. However, the added security benefits make the additional technical requirements worthwhile for those with complex security needs.

Types of Multisig Wallets

There are two main types of multisig wallets:

Collaborative Custody Wallets: You use a third party service to manage one of your private keys. This gives convenience and customer service support, but reduces privacy and control. Examples include Casa, Unchained Capital, and Safe Wallet.

Self-Custody Wallets: You fully control the private keys yourself across multiple devices. This gives maximum security and privacy but requires more technical skill. Examples include Electrum, Specter, Sparrow, BlueWallet, and Bitcoin Keeper.

Benefits of Multisig Wallets

Eliminates key person risk from funds being controlled by one individual
Provides transparency of rules encoded on the blockchain
Easily upgraded as needs evolve
Popular with institutions and decentralized organizations

For most individuals, a single-sig wallet is likely sufficient. But for valuable crypto assets held by businesses or groups, multisig offers important security and resilience benefits to complement any hardware wallet.

So when it comes to the best crypto wallet, the ultimate solution is disabling any single point of failure through multisig. Don’t fully trust any one device, distribute trust across multiple signatures.

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