The number of online threats that are targeting cryptocurrency is growing daily.
As more people invest in Bitcoin and other digital assets, safe storage has become a top priority.
Offline crypto wallets are the best solution for safeguarding your crypto offline and protecting your assets from hackers and scammers.
Join us as we explore the differences between offline and online wallets and give our picks for the best offline crypto wallets of 2024.
What is an Offline Crypto Wallet?
An offline crypto wallet, alternatively known as a cold wallet, is considered to be the safest way to store crypto. Because it is 100% disconnected from the internet, it makes it extremely difficult for cybercriminals to steal your private keys.
Online wallets, also called hot wallets, are always connected online. Sure, they are more accessible but for this same reason, are constant and easier targets for hacking.
The biggest flex of an offline wallet is its ability to protect your information and crypto from hacks, malware, and phishing attacks, which are frequently targeted on online wallets.
Types of Offline Wallets
There are a few main types of offline wallets, each catering to different levels of security and usability:
| Type of Wallet | Description |
|---|---|
| Hardware Wallets | These are physical devices (usually resembling USB drives) that store your private keys offline. Popular examples include Ledger and KeepKey. Hardware wallets are known for their high level of security. |
| Cold Wallets | As a sub-category of hardware wallets, cold storage is truly considered 100% offline. It’s a physical device that does not rely on ever connecting to an external device, such as a computer or mobile phone. A popular example is Material Bitcoin, a stainless steel plate that gives you self-custody of your private keys without relying on any digital components. |
| Paper Wallets | A more basic form of cold storage, paper wallets print your private and public keys on a piece of paper. This method is considered highly secure if done correctly, but it also comes with its risks, like physical damage or loss of the paper. |
Some offline wallets may need a bit more setup compared to online wallets, but they provide a peace of mind that can’t be beaten.
The Difference Between Offline and Online Wallets
When it comes to storing cryptocurrency, offline versus online wallets all comes down to security versus convenience.
Each option has its advantages and disadvantages, depending on how you plan to use your crypto.
Offline Wallets
Are disconnected from the internet. This makes it significantly more secure, especially against hacking, and phishing attacks.
Offline wallets are the ideal choice for long-term HODL, as you don’t need daily access to your crypto but rather prefer peace of mind knowing that your assets are stored safely.
Especially true of hardware wallets that require a connection to a computer or mobile phone, transactions can take longer. This is because they usually require you to connect the device to access your account and make a transaction.
Some might see this as a hassle and waste of time. On the other hand, some cold storage wallets, like Material Wallets, do not require any of those steps. You simply scan the QR code on the metal plate to access your funds or add your wallet’s public address to receive crypto.
Online Wallets
Online wallets are crypto storage options that are always connected to the internet. They’re known to be easy and convenient, allowing you to send and receive cryptocurrency quickly. You can access them from a mobile phone, or web browser. Popular hot wallets, include Coinbase Wallet and CashApp.
Although they are easy to use and give you quick accessibility, their constant internet connection also makes them more vulnerable to security breaches.
For users who need instant access to their crypto, online wallets may be appealing, but security should be considered before storing all of your digital assets online.
Offline Vs. Online Wallets
| Feature | Offline Wallets | Online Wallets |
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| Convenience |
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| Risk of Loss |
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Top 3 Best Offline Crypto Wallets in 2024
Choosing the right offline crypto wallet for your digital assets is crucial for its security and safety.
Here are the top 3 best offline wallets of 2024, each with its features for different types of investors.
Material Bitcoin
Security Features: Material Bitcoin is a true cold wallet that gives you full self-custody of your private keys. It is completely offline, eliminating any risk from online hacking attempts. It’s made of stainless steel to guarantee longevity and protection against physical damage, such as water and fire. It is the most durable storage option available.
Cryptos Supported: Material Wallets exclusively support Bitcoin, Ethereum, or USDT.
Price: Starting at $89, it provides strong security at a reasonable price, especially compared to other cold storage wallets.
Best For: Long-term Bitcoin holders who want a secure, low-tech solution for storing their crypto.
Ledger Nano X
Security Features: The Ledger Nano X uses a secure element chip (CC EAL5+ certified) which isolates sensitive data. Ledger also offers PIN protection and 2-factor authentication (2FA).
Cryptos Supported: Ledger supports over 1,800 cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and many ERC-20 tokens.
Price: Priced at $149, it’s pricier than Material Bitcoin but offers more diversity for crypto portfolios.
Best For: Investors who hold a variety of cryptocurrencies and need a secure way to manage multiple assets offline.
Tangem Wallet
Security Features: The Tangem Wallet relies on an NFC chip to access your account by tapping the wallet on your phone. The wallet is credit card-sized, does not require batteries, and has military-grade encryption.
Cryptos Supported: Tangem supports a wide range of cryptocurrencies over 70 different networks.
Price: Starting at $54.90, Tangem is an affordable cold wallet that appeals to the tech-loving investor.
Best For: Investors who want a straightforward, tech-friendly wallet with minimal upkeep.
Why Use a Cold Crypto Wallet?
➡️Security: Cold wallets are offline, making them far less vulnerable to hacks.
➡️Long-Term Storage: Ideal for HODLers, since cold wallets offer high security, you can “set it and forget it”.
➡️Self-Custody: With cold wallets, you’re in full control of your private keys, eliminating the risk of third-party platforms being hacked or compromised.
How to Choose the Best Offline Crypto Wallet for Me
Once you’ve decided to store your crypto in a cold crypto wallet, it can be overwhelming to decide which one is best for you.
Take our useful survey to guide you in the right direction on how to choose the best offline wallet for you.
Setting Up and Using Your Cold Wallet
Step-by-Step Setup: Material Bitcoin
Setting up your Material Bitcoin cold wallet is so simple!
1. Unbox Your Material Bitcoin Wallet. Make sure that it hasn’t been previously opened or tampered with.
2. Enter your public address into an exchange to send crypto to your wallet.
3. Scan the QR code on the metal plate to check your balance.
❗Don’t Forget: Back up your wallet by setting up a recovery seed phrase. You can safely secure this on a cold wallet backup, such as Material DIY.
Set-Up Guide For a Ledger Nano X
1. Unbox Your Ledger and connect the device to your computer or phone via USB or Bluetooth.
2. Download Ledger Live to your computer or mobile phone.
3. Initialize the device by setting up a new wallet and following on-screen instructions, choosing a PIN code, and writing down your 24-word recovery phrase.
4. Confirm backup.
Setting Up Your Tangem Wallet
Setting up your Tangem Wallet is fairly simple, thanks to its innovative NFC technology. Here’s how to get started:
1. Unbox your Tangem card, which is the physical device that holds your crypto.
2. Download the Tangem Wallet App from the App Store or Google Play on your smartphone.
3. Activate your wallet by opening the app and tapping the card against your phone’s NFC reader to activate. Follow the in-app instructions to complete the setup.
4. Create a backup wallet. You can add up to 3 Tangem cards to secure your assets.
Final Thoughts on Choosing the Best Offline Crypto Wallet
Securing your cryptocurrency with an offline wallet is one of the most effective ways to protect your assets from online threats.
Whether you choose Material Bitcoin or any other offline crypto wallet, the key is to select an offline wallet that suits your investment strategy and security needs.
Remember to always follow best practices, and back up your private keys so that your crypto stays safe for the long term.
FAQs
Can a Cold Wallet Be Hacked?
- Cold wallets are offline, which makes them highly secure against hacks. However, since they are physical objects, consequently, they can be lost or stolen. We suggest storing your offline crypto wallet in a home safe.
What Happens if You Lose Your Cold Wallet?
- If you lose your cold wallet, you can still recover your assets using your backup recovery phrase. Make sure to keep the phrase in a safe, secure spot, separate from the wallet.
Are Cold Wallets Compatible with DeFi?
- Yes, cold wallets can interact with DeFi platforms, but you’ll need to temporarily connect them online through apps like MetaMask to access decentralized finance services.
Do Cold Wallets Support Multiple Cryptocurrencies?
- Most electronic cold wallets support multiple cryptocurrencies.
Is it Hard to Set Up a Cold Wallet?
- Setting up a cold wallet is generally straightforward since each wallet comes with clear instructions, and it’s important to follow the steps and contact their customer service if you have any doubts.
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