Staking is one of the most popular ways to generate passive income using cryptocurrencies that run on the Proof-of-Stake (PoS) consensus algorithm. It has a relatively low threshold of entry, and on top of that, by betting on digital assets, you are helping to support the blockchain network. So it’s a win-win situation for both parties.

Why a cold wallet is a safe way to store cryptocurrency

A cold wallet has long established itself as the most reliable way to store cryptocurrency. This is due to the fact that it is possible to operate funds on this wallet without an internet connection. Therefore, no one can hack your account and get your money, as is often the case with decentralised exchanges. Everyone remembers the well-known sandwich attacks on Uniswap, the transfer of liquidity to Sushiswap, and many other cases when users lost their money forever.
In addition, unlike centralised exchanges such as Binance or Gemini, there is zero chance that your money will be under the control of one person. The Canadian cryptocurrency exchange QuadrigaCX went bankrupt precisely because all user funds (which amounted to more than $190 million) were in the hands of its founder Gerald Cotten. And after his death, access to the funds was lost forever.
The same applies to hot wallets, which are essentially an application or online platform that stores virtual keys online.

Internet access is always a risk factor in such cases. Therefore, if you want to store your funds in a more reliable way (especially if we are talking about large amounts that you are not going to operate on your trading account on a daily basis), it is better to pay attention to cold wallets as the most reliable way to store cryptocurrency.
What is a cold wallet?

Cold wallets are specially designed physical devices that can be used to store cryptocurrencies in a form that is convenient for you. Storage does not require a network connection - it is only needed when you need to make a transaction or other operation. Therefore, if you are sure that only you have physical access and knowledge of the secret phrase, there is no reason to worry at all.
In addition, cold wallets usually have a much higher level of security: firstly, you will definitely need to enter a PIN code to access the interface. And if you forget your password, you will definitely need a seed phrase - a special 12- or 24-word key that is used in both cold and hot wallets when registering a new account. Keep in mind that this phrase should be written down on paper and stored in a safe place (preferably in a safe). Never take a picture of it or share it with anyone else.

One of the biggest advantages of cold wallets is that you have constant physical access to them, and therefore to your money. They are usually small in size and modern in design, so they are comfortable and pleasant to carry around.
Types of cold wallets

Paper wallets

Paper wallets are the most old-school type of this kind of device. If you have such a device, your access key will be stored on paper. In fact, it can be compared to a bank card number. However, such a document also contains a secret key (usually under a holographic seal). You will need it when you need to transfer money from your wallet.
Paper wallets are very convenient to use, because paper is easy to store, but it is also easy to lose. Therefore, it is best to keep paper wallets in a safe place under lock and key.
USB wallets

This is one of the most popular types of cold wallets. USB devices are designed to store cryptocurrency offline. However, they can always be connected to a computer via a USB port. In this case, both access keys are stored directly on the device.
In order to transfer funds to the wallet, the user must connect their device to the online device, transfer the funds, and disconnect the device as soon as possible.
Of course, an Internet connection makes this type of wallet more vulnerable to hacker attacks. However, if you do everything right and follow the security rules, your funds are safe. In addition, USB wallets are more convenient to use and have greater protection against loss or damage, which covers the few disadvantages. Perhaps the biggest drawback of this type of device is its relatively high cost. For example, the current price of one of the most popular devices of this kind, the Ledger Nano X, is $129.
Hard drive-based wallets

As the name implies, this type of cold wallet is a special hard drive that will store all your private keys. These wallets are a bit more complicated to use: in order to operate with funds and keys, you will need special software that usually comes with these types of wallets.
This is necessary because such software allows you to connect your device without access to the Internet. Therefore, hard drive-based wallets are slightly more secure than USB wallets.
The peculiarity and advantage of this kind of wallet is that it can conduct transactions with many blockchains simultaneously. Therefore, a user can operate with many coins at once in a short period of time.
Card wallets

Card wallets are another very convenient way to store cryptocurrencies, as they look like a bank card. What's more, this type of wallet comes with a microprocessor that holds your private keys.
Card wallets are usually equipped with an NFC function, which allows you to conduct transactions by tapping a special reader. Yes, that's right: your smartphone has the same feature that you use to pay at the supermarket.
What is the best cold wallet?

How to choose a cold wallet
Before you choose one of the devices, you need to conduct a thorough research and make a comparative analysis of the models you like.
There are several important steps that are an integral part of this journey.
Determine what features you need
A trader's cold wallet and a regular user's cold wallet may differ in terms of the set of basic functions. For example, a trader may need a specific set of cryptocurrencies that should be compatible with a cold wallet, while an average user will be more interested in a user-friendly interface and speed of operations.
Research all types of cold wallets
Take the list you saw above in this article as a basis. Do some research and learn as much as you can about each type of wallet. Your wants and needs will also come in handy here: whether you want to connect to a network, how important the size of the device is to you (for example, if you travel, you'll definitely be more comfortable with a small wallet), etc.
Explore all the brands
There is a fairly wide range of cold wallets on the market nowadays. Research each company individually: pay attention to reviews on different platforms (go to Trustpilot, look for relevant threads on Reddit, etc.), rating, and reputation. Find out how experienced the team behind the product is.
Decide on a budget
Prices for cold wallets can vary. Set your price threshold and filter the wallets that fit your financial capabilities.
Find out about the level of security and support
A high level of security and protection is the key to successful wallet use. Be sure to check what security measures the manufacturer uses and how it will protect you in case of hacking.
Also find out about the availability of support. The two main signs of quality support are 24/7 availability and a high level of expertise of the support staff. Test the support of each wallet you like and draw conclusions.
The most popular cold wallets 2025
Ledger Nano S

The Ledger Nano S is considered one of the most popular cold wallets among ordinary users due to a number of advantages. Ledger has been developing cryptocurrency gadgets for more than 10 years, so its experience has helped to create one of the most user-friendly wallets.
It supports about 1800 currencies and tokens, so you won't have to look for an alternative to this device, as it will cover any needs and whims of the most experienced trader.
The Ledger Nano S has a very cool Ledger Live ecosystem that is easy to understand and use. It is built into the crypto wallet by default, which makes it very convenient to conduct all the necessary operations with cryptocurrencies. With the Ledger Live ecosystem, you can also add additional wallets to your gadgets. Moreover, every year this ecosystem changes and adapts to user requests - cryptocurrencies are added to the platform that regular wallet users would like to see.
Ledger Nano S also has Bluetooth, so you can connect it to Android and iOS mobile devices very easily and quickly. If you prefer more traditional methods, a USB cable will help you connect to a computer.
Pros: a variety of connections to mobile devices and a computer, affordable price of $119, support for a large number of cryptocurrencies, beautiful and laconic modern design: the body is made of polished steel and the OLED screen.
Сons: not quite user-friendly screen and control buttons, few functions.
Trezor Model T

Trezor Model T belongs to the 2nd generation of hardware wallets, just like
Ledger Nano S. However, there is also a significant difference between them. Trezor has very convenient features for users, such as instant access to third-party exchanges (such as Changelly and CoinSwitch) using the Trezor internet interface. This way, you can easily buy cryptocurrencies for fiat, exchange one cryptocurrency for another - all without leaving the general Trezor Model T interface.
Another unique feature of the wallet is Shamir Backup, which allows you to set up to 16 shared resources that will be used to restore your account if something goes wrong.
Also, unlike Ledger Nano S, Trezor Model T has a touch screen (Ledger has two not very convenient control buttons), which makes it much easier to work with the device.
Trezor Model T has a very high level of protection, which is provided by several unique innovations. Firstly, the MicroSD port allows you to encrypt your PIN, which will protect your account from any hacker attacks. Second, you can enable an additional layer of protection when sending and receiving cryptocurrencies. To do this, go to the Receive tab and set the receiving address, which you will need to confirm in your wallet.
The Czech company Satoshi Labs, which develops Trezor, has paid a lot of attention to educational materials, having developed a large-scale manual that contains a lot of useful information about Bitcoin, as well as information about Trezor devices.
Pros: a very high level of security (password encryption, the ability to set an additional level of protection, a large, user-friendly touchscreen.
Cons: support for a smaller number of cryptocurrencies than in Ledger Nano S (1000), higher price of €159.
SafePal S1

SafePal S1 is a multi-currency cold wallet created by Binance. Although it was released back in 2019, it still remains relevant thanks to its unique features and convenience.
SafePal S1 supports over 10,000 different tokens on 19 different blockchains, including NFTs. You really won't find such a wide variety of choices anywhere else.
The wallet was conceived as a universal device that could cover all the needs of both the average user and the sophisticated trader and cryptocurrency expert. Binance focused on secrecy first and foremost, and they were right. Thus, SafePal S1 has such basic and advanced security elements as the initial recovery phrase, two-factor authentication, the ability to set a pin code, and the presence of a key removal pool. The latter adds a significant advantage to SafePal S1 over its competitors.
But that's not all: the developers have created two unique seals on the secure packaging, added the ability to create an offline wallet address, a 6-digit password for the hardware device, and a template for the SafePal S1 mobile wallet software.
The visuals of the SafePal S1 are no slouch either. This cool wallet has a very stylish minimalist design, a colour screen, a QR code scanner, and a user-friendly D-pad controller that makes navigation easy even for a beginner.
Binance has also developed additional software that is compatible with the wallet, allowing you to check your crypto balance and perform crypto transactions. All these visual and functional advantages together contribute to a very quick adaptation of the user, who intuitively understands what to do.
Pros: a very user-friendly and intuitive interface, the highest level of security, the largest selection of cryptocurrencies, the ability to link an unlimited number of external crypto wallets, and an affordable price of $49.99.
Cons: absolute synchronisation with the SafePal app, which reduces the variability of actions.
CoolWallet Pro

This is a relatively new cold crypto wallet released in 2021. The CoolWallet Pro is a crypto wallet with a credit card form factor and encrypted Bluetooth communication.
The device has a high level of security thanks to the new EAL6+ multi-level cold storage security standard, which includes: biometric verification in the wallet, AES256-encrypted Bluetooth Low Energy (BLE), and five processors to manage it - SE, MCU, e-Ink driver, power management, and BLE.
Visually, this wallet also has its advantages: it is equipped with a bright and comfortable e-ink screen, which allows you to check visual data in a timely and comfortable manner before making a transaction. However, the appearance of CoolWallet Pro is not only about beauty, but also about security. The company's patented cold compression process, which makes the wallet look laminated and stylish, also ensures that the device is genuine and waterproof. And its lithium-ion battery provides a full week of endurance.
CoolWallet Pro focuses mainly on DeFi users who mainly focus on working with staking protocols. The Pro version has built-in support for Polkadot (DOT), Cosmos (ATOM), Tron (TRX) and TRC20, BEP-20 assets, ETH 2.0, Cardano (ADA), and NFT.
Thus, this wallet can be used not only for storage but also for generating passive income.
Pros: top-notch visuals, which are also responsible for security; EAL6+ security standard; support for a wide range of tokens; the possibility of passive rewards.
Cons: high price - $149.
Remember that your choice should always be tailored to your needs and market trends. Always pay attention to the factors that will be important to each user, regardless of the focus: a high level of security and a wide range of tokens.