Cold Wallet Selection Guide | How to Choose the Right Hardware Wallet in 2025?

Why Are More and More People Turning to Cold Wallets?

In the past two years, crypto operations have indeed become more convenient, but many issues have also arisen—lost private keys, forgotten seed phrases, assets stolen. Many have experienced that panic: losing their crypto assets just like that. That’s why cold wallets have become the first choice for many.

In short: Cold wallets store your private keys on offline devices, making it impossible for hackers to breach them.

Quickly Understand What a Cold Wallet Is

Cold Wallet is a way to store the private keys of your crypto assets on a device that is not connected to the internet. This device can be a hardware wallet (most common), or old-school methods like USB drives or paper backups, which are effective despite being traditional.

Compare it with hot wallets:

• Hot Wallet: stored on online devices like smartphones or computers, convenient but risky
• Cold Wallet: stored offline, highly secure but relatively cumbersome to operate

Why is it so secure? Because cold wallets fundamentally isolate your private keys from network threats. Your private keys will never be exposed online, and even the most skilled hackers can only watch your assets in frustration.

How Does a Cold Wallet Work?

Step 1: Generate Key Pair

When setting up a cold wallet, the system generates a pair of public and private keys.

Public Key is your address, similar to a bank card number, which can be shared openly to receive crypto.

Private Key is the real treasure—like a password, whoever has it can control all assets in the wallet. Most cold wallets also generate a seed phrase (usually 12 or 24 English words), which is easier to remember and is essentially another form of the private key.

Step 2: Keep the Private Key Offline

This is the core security mechanism of cold wallets—private keys are stored entirely on the device locally, not connected to the internet, not synchronized, and not uploaded to the cloud. Cold wallets usually store only one private key, but you can import private keys generated on other devices.

Comparison of Three Popular Hardware Wallets in 2025

The market offers a variety of cold wallets. Here are three of the most recognized options for your reference:

Ledger Nano X

• Manufacturer: Ledger (France)
• Security Certification: CC EAL 5
• Supported Coins: 5500+
• Size & Weight: 72mm×18.6mm×11.75mm, 32 grams
• Official Price: $149
• Suitable for: users with diverse assets and a preference for established stability

Trezor Safe 5

• Manufacturer: SatoshiLabs (Czech Republic)
• Security Certification: CC EAL 6+ (highest level)
• Supported Coins: over 1000
• Special Features: equipped with a touchscreen
• Official Price: $169
• Suitable for: users seeking the industry’s strongest security certification

SafePal S1 Pro

• Security Certification: CC EAL 5+
• Supported Coins: 30000+ (most in the market)
• Special Features: supports USB-C and QR code connections
• Official Price: about $89.99
• Suitable for: budget-conscious users needing support for multiple coins

How to Choose the Right Cold Wallet?

Before buying a cold wallet, consider these four dimensions to avoid detours:

1. Security First

Check the wallet’s encryption level (certification standards), whether it supports multi-factor authentication, and if the device itself is fireproof, waterproof, and shockproof. Not confident from official info? Refer to actual user feedback for more reliable insights.

2. Compatibility Check

Ensure the wallet supports all the coins you hold. Most hardware wallets cover mainstream coins without issue, but niche coins may not be supported. Confirm on the official website before purchasing to avoid surprises.

3. Price and Value

Cold wallets range from $50 to $500. Expensive doesn’t always mean better, and cheap doesn’t necessarily mean poor quality. The key is whether the price matches its features and security level.

4. User Experience

Some wallets are intuitive to operate, others require more effort. Since you’ll be using it long-term, choose one with a friendly interface and clear navigation to make managing assets more pleasant.

How to Use a Cold Wallet in Practice?

Create or Import Keys

If it’s a new wallet, generate the public-private key pair directly on the device. If you already have a private key, import it into the cold wallet.

Transaction Initiation Process

When making a transaction, connect the cold wallet to your phone or computer, enter your PIN or password to unlock, then initiate the transaction.

Verify the Transaction

Details will be displayed on the cold wallet’s screen. Confirm that everything is correct before pressing confirm. This step must be completed on the device itself, not on your phone or computer. This is why security is high— all critical operations are performed offline on the device.

After Transaction, Disconnect Immediately

Once the transaction is complete, turn off the cold wallet. It automatically goes offline. Your private key and seed phrase return to a state of absolute security.

Three Common User Pitfalls

• Don’t connect your cold wallet to unfamiliar DApps, as this exposes it to the same risks as hot wallets
• Although hardware devices are shockproof and waterproof, handle them carefully; damage cannot be repaired
• Always back up your private key and seed phrase, storing them securely on paper, USB drives, or other safe formats

Cold Wallet vs Hot Wallet, Who Should Use Which?

In short: for large amounts and long-term holding, choose a cold wallet; for small amounts and frequent transactions, a hot wallet suffices. Some users opt for both—storing main assets on a cold wallet and using a hot wallet for trading, each serving its purpose.

The Hardware Wallet Market Is Rapidly Expanding

According to industry data, the global crypto wallet user base has reached 68 million. The growth rate in the first half of 2022 was particularly rapid, surpassing the total new users in 2021.

Looking at the hardware wallet market size, it was $400 million in 2021 and is projected to grow to $3.6 billion by 2032. What does this mean? It indicates that more and more people recognize the value of cold wallets, and more companies are entering the competition.

Competition benefits users. To gain market share, manufacturers are investing in security, cross-chain support, coin variety, and pricing. As a result, you’ll see more innovative features and more affordable prices.

Final advice: Cold wallets are suitable for those who view crypto assets as long-term investments. If you trade frequently or hold smaller amounts, hot wallets are sufficient. But regardless of your choice, safeguarding your private keys and seed phrases remains the bottom line.