Security is everything when it comes to crypto storage.
Different from traditional banking, holding crypto usually means that you take full responsibility for protecting your assets, not an institution.
This is why having secure storage is vital.
Hot wallets, which are online wallets, are always connected to the internet.
Yes, they are convenient for fast transactions, but consequently, they are super vulnerable to hacking.
Using cold storage, such as an air-gapped wallet will always be your safest bet for long-term holding.
What is an Air Gapped Wallet?
An air-gapped wallet is a type of cryptocurrency wallet that is completely disconnected from the internet and any other network.
It is the most secure storage method for cryptocurrency, made to keep your private keys offline. This avoids any type of online threats, such as hacks, phishing scams, or malware.
How Does an Air-gapped Wallet Work?
When you want to make a transaction, you typically scan a QR code associated with the air-gapped wallet. The wallet now “signs” your transaction offline. This assures that your private keys are never entered in any online platform.
Who Benefits from an Air-gapped Wallet?
Air-gapped wallets are used by crypto investors who have a high priority for maximum security.
Those who are long-term holders, or are managing large amounts of crypto, or anyone who cares about safety.
The benefit of self-custody is that, as a result, you ensure that your assets are not going to be tampered with.
Roundup of Benefits of Using an Air-Gapped Wallet
| Enhanced Security |
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| Reduced Risk of Phishing |
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| Ideal for Long-Term Storage |
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| Private Transactions |
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Why Should You Use an Air-Gapped Wallet for Cryptocurrency?
There are two main reasons to switch to an air-gapped wallet for storing your crypto:
1️⃣Enhanced Security
2️⃣Privacy
Enhanced Security
Since your private keys are kept completely offline, from a cybersecurity standpoint, there is no way that hacking can take place. The pure nature of an air-gapped wallet means that the connectivity that hackers and scam artists rely on simply doesn’t exist.
Privacy Benefits
By never connecting to the internet, you are guaranteed to keep your identity and transaction history private. When you use a software wallet, your metadata is collected. But, with an air-gapped cold wallet, your information and private keys are shielded.
What Are the Best Types of Air-Gapped Wallets for Cryptocurrency?
Air-gapped wallets come in two main types: electronic and non-electronic.
Electronic wallets, like most hardware wallets, store your private keys offline and sign transactions without ever connecting to the internet.
Non-electronic wallets including paper or metal cards, like Material Shadow, are considered cold storage and are the top of maximum security.
You also have the option of metal cold wallet backup, for seed phrase storage on any device.
When you are choosing the best air-gapped wallet, consider these factors:
🛡️Security: How well does the wallet protect your keys from physical and cyber threats?
👍Ease of Use: Are you going to be able to utilize it effectively, especially for setting up and managing transactions?
💪Durability: Can the wallet withstand damage from fire, water, or physical wear?
🔄Recovery Options: Does the air-gapped wallet have reliable ways to back up and recover your funds if it’s lost or damaged?
Top Air-Gapped Wallets on the Market
There are many different crypto wallets available on the market, with many of them claiming to be the best hardware wallet.
For the most protection in security of your crypto, an air-gapped wallet is the way to go.
Here are our picks for some of the best ones available:
Material Shadow Wallet
The Material Shadow Wallet is a fully air-gapped hardware wallet designed for maximum security.
It operates with no wireless connections, meaning no Wi-Fi, Bluetooth, or NFC. This guarantees that your private keys are always offline.
It is tamper-proof, made with high-end encryption and it’s durable for long-term storage.
It comes as two separate cards, one Black Card which is meant to be carried with you in your wallet for receiving Bitcoin.
And the other Metal Card, which is split into two parts, which stores your private keys.
To function, you need an agreement from both pieces to make transactions.
The plates are made from stainless steel, making them fireproof, waterproof, and shock absorbent.
For maximum protection, you can pair your Material Shadow with Material DIY, a metal backup for your recovery phrases. Together, they make top-of-the-line security storage.
💰Price: $112 for Material Shadow & $59 for Material DIY.
✅Pro: Top-level security with strong physical hardware and offline functionality.
❌Con: User responsibility for safely storing each piece.
Coldcard Wallet
The Coldcard Wallet is a popular choice among Bitcoin lovers and tech enthusiasts for its security and advanced features.
It’s a hardware wallet that supports air-gapped operations, allowing transactions to be signed offline using microSD cards.
Coldcard features a secure element for key storage, with PIN protection. It’s also compatible with various desktop wallets, making it flexible for different setups.
🚨Warning: Remember, once you pair your device to an online exchange or platform, you are making yourself vulnerable to certain cyber attacks.
💰Price: $157.94
✅Pro: Simple physical design.
❌Con: Limited only to Bitcoin and has a complicated set-up.
Cypherock Wallet
The Cypherock Wallet has a unique approach to security. It achieves this by splitting your private key into multiple encrypted parts.
This gives it an elevated level of security as not one single device holds the full key.
It supports multiple cryptocurrencies and includes a small digital joystick for manoeuvering transactions.
Like other electronic hardware wallets, once this device is connected to your computer, it can be compromised by malware. So please remember to only use official websites and apps and keep your firmware updated.
💰Price: $189
✅Pro: Innovative key-splitting technology.
❌Con: Requires multiple devices for recovery, which may be inconvenient and potentially dangerous if lost.
Blockstream Jade Wallet
The Blockstream Jade Wallet is a fully open-source hardware wallet.
It features a built-in camera that allows you to scan a QR code, making it air-gapped.
*This wallet also connects with USB and Bluetooth which eliminates the air-gapped feature*
It supports Bitcoin and the Liquid Network and is compatible with various wallet platforms including its own app Blockstream Green.
💰Price: Starting at $64.99
✅Pro: Affordable
❌Con: Requires a companion app for full functionality.
How to Set Up and Use an Air-Gapped Wallet Safely
Step 1. Choose the right wallet best for your needs.
Step 2. Set up offline – Perform the setup in a secure, offline environment to avoid exposure to threats.
Step 3. Secure your recovery phrase – Generate and store your recovery phrase using a backup like Material DIY.
Step 4. Test transactions
Step 5. Firmware updates (for electronic wallets only) – If your wallet supports updates, ensure they’re up-to-date.
Final Thoughts on Air-Gapped Wallets
Air-gapped wallets offer some of the highest levels of security for your cryptocurrency storage.
By keeping your private keys offline, they provide high-end protection against online threats, ensuring your assets remain safe.
Whether you’re a long-term investor or someone managing larger funds, options like Material Shadow and Material DIY are reliable solutions.
FAQs
Can I use an Air-Gapped Wallet without an internet connection?
- Air-gapped wallets operate entirely offline by design, which significantly enhances security. After signing transactions offline, you then “broadcast” them using an internet-connected device to complete the process.
How do Air-Gapped Wallets compare to traditional hardware wallets in terms of security?
- Air-gapped wallets provide higher security because they eliminate the risk of online attacks. In contrast, online wallets, which rely on an internet connection, remain vulnerable to threats such as hacking and phishing.
What happens if I lose my Air-Gapped Wallet?
- If you’ve securely backed up your recovery phrase, then you can easily restore your funds on a new wallet. Whereas, if you fail to back up your seed phrase, recovery becomes impossible.
Is it difficult to recover my funds from an Air-Gapped Wallet?
- As long as you have your recovery phrase, the process is straightforward. Simply input your phrase into a compatible wallet, and you’ll quickly regain access to your crypto.
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