As more Australians get into crypto, the need for secure ways to store digital assets is growing just as fast. While software wallets are great for everyday use, nothing beats a hardware wallet when it comes to protecting your crypto from online threats. If you’re just starting out, or you’re holding a larger amount of crypto for the long term, a hardware wallet might be your smartest move.

In this guide, we’ll walk you through what a hardware wallet is, how it compares to software wallets, and which options are best for beginners. We’ve reviewed some of the most trusted brands on the market so you can make an informed decision.

What is a hardware wallet?

A hardware wallet is a physical device that stores your crypto securely offline. Unlike software wallets that live on your phone or computer and are connected to the internet, hardware wallets are immune to most online attacks. Even if someone hacked your computer or infected your phone with malware, they wouldn’t be able to access your funds without also having your physical wallet and knowing your PIN.

These devices are often referred to as cold wallets because they are disconnected from the internet when not in use. They keep your private keys safe by never exposing them online. Even if you lose the device, you can recover your funds using a recovery phrase. While hardware wallets offer peace of mind, they do come with a trade-off. Every transaction must be confirmed manually on the device, which adds a few extra steps. That’s a small price to pay for serious security.

Software vs hardware wallets

A software wallet is convenient, free, and easy to set up, making it perfect for quick transactions, accessing DeFi, and using NFTs. However, it’s only as secure as the device it’s installed on.

A hardware wallet, on the other hand, is best suited for people who want the highest level of protection and are willing to pay a bit more for it. If you’re holding crypto for the long term or storing larger amounts, this type of wallet is worth every cent.

Here’s a quick side-by-side look at how software and hardware wallets compare, so you can choose the one that fits your crypto style best.

Now let’s take a closer look at the best hardware wallets for crypto beginners.

Trezor Model T

The Trezor Model T is widely considered one of the most secure and beginner-friendly hardware wallets on the market. It features a 1.54-inch colour touchscreen, which makes confirming transactions and navigating the menu feel easy and intuitive. It supports over 1,800 cryptocurrencies including all ERC-20 tokens, so you’re covered whether you’re holding bitcoin, Ethereum or anything in between.

A standout feature is its Shamir Backup system. This allows you to split your recovery seed into multiple pieces, which adds an extra layer of safety in case you lose or damage the wallet.

Pros

• Touchscreen interface makes it easy to use
• Shamir Backup adds extra protection to your recovery phrase
• Supports a wide range of cryptocurrencies

Cons

• More expensive than other models
• No Bluetooth functionality

Rating: 9.5 out of 10

Ledger Nano X

Ledger’s Nano X is another leading hardware wallet that’s especially popular with mobile-first users. It includes Bluetooth connectivity, which means you can manage your crypto on the go using the Ledger Live mobile app. It supports more than 5,500 digital assets and features a secure chip for top-tier encryption.

The Bluetooth connection makes it easy to use, although some people prefer the USB-only version for extra peace of mind. Still, if you’re looking for flexibility and security, this is one of the best options available.

Pros

• Wireless access via Bluetooth
• Extensive support for cryptocurrencies
• High-end security chip

Cons

• Some concerns about Bluetooth vulnerability
• Costs more than entry-level models

Rating: 9 out of 10

Trezor Model One

The Trezor Model One is the original hardware wallet that helped shape the industry. It’s a more affordable alternative to the Model T, offering solid security and support for a broad range of coins. Instead of a touchscreen, it uses two physical buttons to approve transactions.

It also features open-source firmware, which means the community can inspect the code and contribute to its ongoing security and development. While it doesn’t support some newer assets and lacks NFT compatibility, it’s a great entry-level device.

Pros

• Budget-friendly without sacrificing security
• Open-source firmware
• Works with many wallets and decentralised apps

Cons

• No touchscreen
• Limited support for NFTs and some newer tokens

Rating: 8.5 out of 10

Ledger Nano S Plus

The Nano S Plus is the upgraded version of Ledger’s popular entry-level wallet. It offers more internal memory than the original Nano S, which allows you to install more apps and manage a broader portfolio.

Although it lacks a touchscreen and Bluetooth, it still supports over 5,500 digital assets and offers the same level of encryption and private key protection as the Nano X. If you’re looking for a high-quality device at a lower price, this could be your wallet.

Pros

• Affordable and secure
• Supports a wide range of cryptocurrencies
• Same security features as Ledger’s premium models

Cons

• No Bluetooth or touchscreen
• Smaller storage than the Nano X

Rating: 8.5 out of 10

Ellipal Titan

The Ellipal Titan is built for users who want maximum security above all else. It’s completely air-gapped, meaning it has no USB, WiFi, Bluetooth or NFC connections. Instead, it communicates using QR codes. This setup makes it nearly impossible to hack remotely.

The large touchscreen makes it simple to use, and it supports a wide variety of digital assets. However, the device is bulkier than others, and some users may find the QR scanning process a little clunky.

Pros

• Fully air-gapped design removes online attack risks
• Large touchscreen for easier navigation
• Supports multiple blockchains and tokens

Cons

• No direct connection to phones or computers
• Larger than most hardware wallets

Rating: 8 out of 10

How to choose the right wallet for you

There’s no one-size-fits-all solution. The best wallet depends on how you use crypto and what your priorities are.

• If you want the most secure and intuitive experience, the Trezor Model T is a fantastic all-rounder
• If you manage your portfolio from your phone, the Ledger Nano X gives you that flexibility with strong security
• If you’re looking for a budget-friendly option, the Trezor Model One or Ledger Nano S Plus are both solid picks
• If security is your absolute top priority, the air-gapped Ellipal Titan delivers peace of mind
  

When choosing a wallet, think about how many cryptocurrencies you need to store, how often you’ll need to access them, and whether you prefer a touchscreen or physical buttons.

Also remember that no matter how secure your wallet is, your recovery phrase is the key to everything. Write it down, store it somewhere safe, and never share it with anyone.