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Want full control of your cryptocurrencies? Snag these best noncustodial wallets for ultimate ownership and security of your crypto assets.

adoption is on the rise, and with it comes the vital question of how to securely store these digital assets. While enthusiasts might point to the best noncustodial crypto wallets for maximum security and ownership, it can be daunting for beginners to dive right in without understanding the importance of the concept of custody. For starters, crypto storage falls under two broad categories: 

Custodial storages are wallets that cede control of your 

 to another party. You trust a third party to keep your assets secure and give you access whenever you need to trade them or move them somewhere else, an arrangement similar to keeping your money with a bank. While custodial wallets afford you convenience and ease of usage, trusting someone else with the security of your assets does come with the risk of loss. 

The safer alternative is a noncustodial wallet, one with which you have sole control of your private keys and, by extension, your digital assets. But being in charge of your crypto means you alone are responsible for securing your keys and staying on top of the security of your assets, which could be somewhat daunting for beginners. 

This article explores the best noncustodial wallets, both hardware and software.

The underlying principle is that users control the private keys to their accounts, so the noncustodial wallet provider shouldn’t have any access to the keys, and therefore can’t freeze or manage your assets in any way. For clarification, wallets don’t actually store crypto. They merely hold the 

 and provide users an interface to interact with their crypto. 

Why Use a Noncustodial Wallet Over a Custodial Wallet? 

Even though allowing a third party to manage and secure your crypto is convenient, giving up control can create susceptibility to 

 exchange that filed for bankruptcy in February 2014. Mt. Gox announced that about 850,000 bitcoins belonging to customers — valued at approximately $450 million then — were missing. A security audit revealed that the missing bitcoins were stolen directly from Mt. Gox crypto wallets starting in 2011.

Another more recent custody disaster is the story of 

, which used billions of dollars in user funds and eventually declared a 

, resulting in heavy losses to users who had funds inside FTX, where even hedge funds had 

 stuck within FTX. Not surprisingly, sales and usage of noncustodial wallets spiked considerably after this incident.

Apart from the catastrophic risk of loss stemming from handing over control of your assets to a third party, as illustrated by the Mt. Gox and FTX debacles, there are other reasons to use a noncustodial wallet.

A custodial wallet provider can impose a maximum withdrawal limit or unilaterally set fees for using their services. You can temporarily lose access to your crypto if the platform has technical issues and 

. Basically, your assets are at someone else’s mercy if you don’t own your keys. After all, as they say, “not your keys, not your coins.”

On the other hand, a noncustodial wallet gives you complete control of your digital assets. You can use your funds as you wish. However, you alone are responsible for the 

. Hence, choosing from the best noncustodial wallets is critical.

What’s the Difference Between Hardware and Software Noncustodial Wallets? 

Hardware wallets are secure and simple devices that store your crypto offline so you can’t be hacked. Also known as 

, they look like small external drives and are independent of online exchange platforms. Hardware wallets require you to plug them into a device before you can access your crypto.

Software wallets, on the other hand, are applications that you can download on your computer or mobile device. They’re also known as “hot” wallets, as they’re online and have more vulnerabilities than cold wallets. They store your private keys, and provide an interface for you to trade and manage your crypto. Software wallets are encrypted, and require a password to access the keys that are stored in them.

Hardware and software noncustodial crypto wallets differ in various aspects. The following three metrics highlight their differences.

Hardware wallets provide a higher level of security compared to software wallets, as they store private keys offline on a physical device, keeping them isolated from potential online threats like malware or 

. Software wallets, on the other hand, are stored on electronic devices, such as computers or smartphones, making them potentially vulnerable to 

 if the electronic device is compromised.

Software wallets generally offer a more user-friendly and convenient experience. They’re easily accessible on devices that users already own, such as smartphones or computers. Software wallets often have intuitive interfaces, making it simpler to manage and transact with cryptocurrencies. Hardware wallets, although more secure, can be less user-friendly and require the extra step of connecting the device to a computer or mobile device for transactions, which some users may find less convenient. In addition, it costs up to several hundred dollars to purchase a hardware wallet, while most software wallets are free.

Software wallets are highly portable, since they can be installed on multiple devices, allowing users to access their funds from various locations. You can simply install the software wallet app on your smartphone or computer, and even manage your crypto on the go. In contrast, hardware wallets are physical devices that need to be carried separately. While they offer enhanced security, they require users to have a physical electronic device with them to access their funds, which may not be as convenient for frequent or impromptu transactions.

When it comes to deciding between these noncustodial wallets, investors tend to have differing opinions. By virtue of their offline status, hardware wallets are more secure than software wallets. Thus, these 

 are better for storing large amounts of crypto. On the other hand, software wallets are connected to the internet, so there’s a theoretical risk of possible breach or attack. However, they offer more convenience and are well-suited for users who transact frequently and need quick access to their assets.

The principle behind the best noncustodial hardware wallets that gives them superior security is that they’re fully isolated. This separates them from your highly vulnerable computer or other connected device. Here are some of the best hardware wallets worth considering.

When it comes to the best noncustodial wallets, 

 is the most recognizable. It's the established and reputable company behind the popular Ledger suite of hardware wallets. Your Ledger wallet is accessed through 

, a proprietary free desktop app that enables you to send and receive cryptocurrencies and check your balance, and gives you complete control of all your Ledger devices. Ledger currently offers two hardware wallets: Ledger Nano X and Ledger Nano S Plus. A new product, known as the 

However, Ledger has recently made headlines with its latest ID-based 

 feature, which stores a backup of the user’s recovery seed phrase. While this is being introduced to give users a way of recovering their private keys in the event that they lose access to their recovery phrase, Ledger has encountered 

 from users who feel that it’s an utter contradiction to the purpose of having a noncustodial wallet in the first place. Furthermore, the recovery service is ID-based, which would require KYC registration involving each user submitting a government-issued identification. 

: This is Ledger’s flagship wallet device. It’s remarkable for its ability to 

 crypto assets simultaneously, and it supports 

 and Bluetooth support, which means you can confirm your transactions on the go without the hassles of connecting a USB cable. 

Number of crypto assets supported: Over 5,000

: With an affordable price tag of $79, the Ledger Nano S Plus offers the best bang for your buck. It comes with a user-friendly interface and clean design, and provides support for a wide range of cryptocurrencies. While it’s also able to support over 5,000 tokens, it 

The Ledger Stax is Ledger’s latest product that provides seamless and user-friendly crypto and NFT utilization. Users can effortlessly sign transactions on the world's initial curved E Ink touchscreen, and customize the lock screen with their favorite NFT or photo, making it uniquely theirs. 

 is a well-designed, although relatively large, hardware wallet from 

. It features an easy-to-use interface in a solid, durable device, with compatibility to macOS, Windows and Linux. KeepKey’s stand-out feature is an in-wallet crypto exchange that allows you to trade between cryptocurrencies without having to move your crypto to an external exchange. 

KeepKey stores all private keys with the industry-standard BIP 32 protocol. For added security, KeepKey requires you to authorize each transaction manually. However, one downside of KeepKey is the limited number of crypto assets that can be stored at any one time.

Trezor pioneered the noncustodial wallet market with its hardware crypto wallet technology, and it has a solid reputation in the industry. The company’s wallets are unique in that they’re the only hardware wallets to offer native support for 

 tokens. On the flip side, updating the firmware on Trezor wallets often causes the whole wallet to be deleted. This can be scary for a new user; however, you can easily enter your backup phrase and quickly restore your wallet. Like Ledger, Trezor offers two hardware wallet devices: Trezor Model One and Trezor Model T. 

: The Trezor Model T shares the same features as the Trezor Model One, except for its newly introduced large touchscreen, an important upgrade since it allows users to enter their seed phrase directly on the device without going through a computer. Your computer could be infected with malware, which would make entering your seed phrase on it very risky. By only allowing you to enter the seed phrase through the touchscreen, the Trezor Model T removes all threats of hacking, since the device isn’t connected to the internet and is therefore malware-free. The Trezor Model T also supports more cryptocurrencies than the Trezor Model One.

: The Trezor Model One is the earliest hardware wallet on the market, and still the most reputable. It features a clean design with a user-friendly interface and 

 crypto hardware wallet is designed to provide users with a secure and user-friendly solution for managing their cryptocurrencies. It offers a unique air-gapped design, ensuring that private keys are stored offline and isolated from potential online threats. With its large touchscreen display and intuitive interface, users can easily navigate the wallet's features and perform transactions with ease.

Ellipal features a suite of security features:

Ellipal offers two wallets: ELLIPAL Titan and ELLIPAL Titan Mini.

 manages up to 48 crypto assets at once, and supports over 10,000 tokens. With its large touchscreen display and compatibility with both Android and iOS systems, the ELLIPAL Titan provides a highly user-friendly experience.

Number of crypto assets supported: 10,000

 features a smaller screen, and manages up to 36 crypto assets at a time. However, it retains the same level of security and user-friendliness.

However, neither of the ELLIPAL products supports Bluetooth connectivity.

 is a highly secure hardware wallet, regarded as a hybrid with both online and offline elements. Crypto is stored in the hardware device, which can then be used to interact with SafePal’s software products, including their mobile application and browser extension, which facilitate services such as buying, selling and trading.

 carries with it a suite of security features, including recovery seed phrase, 2FA and self-destructive mechanisms, should there be a malware attack. This security is complemented by 24/7 community support, aiming to create a friendly user experience.

In addition, SafePal S1 also supports a vast variety of cryptocurrencies, as well as 54 blockchains.

However, downsides of the wallet include inconvenience, due to lack of portability, and no support for Bluetooth connectivity.

, simple hardware wallet that’s designed with the beginner in mind. It features a unique backup system that uses a micro SD card, rather than a mandatory seed phrase. This makes the backup process one of the fastest among our list of best noncustodial wallets. Other cool features include a quick setup, an intuitive interface and a practical in-app guide. 

Compatible with Windows, macOS and Linux operating systems, BitBox currently supports BTC, ETH, ETC, LTC and ERC-20 tokens.

BitBox ensures the safety of your digital assets with a host of excellent security features. Each transaction must be manually verified using a touch button on the device. You’ll also get two-factor authentication (2FA) and AES-256-CBC–encrypted USB communication. The BitBox compact device retails for $149.

, one of the oldest Bitcoin companies. The COLDCARD wallet is a Bitcoin-only, noncustodial storage solution featuring micro SD backup, decoy wallets, pins, lockout timer and other great security tools. 

COLDCARD prides itself on being a true air-gapped wallet by using 

 in the full cycle, from seed generation to transaction signing.

The device is bulkier than most competitor hardware wallets, but its size accommodates a full numeric keypad, which makes COLDCARD easy to use. This makes it a viable choice among our best noncustodial wallets for those who prefer convenient hardware wallets.

Although possibly less secure than hardware wallets, software wallets have the advantage of convenience. Users can freely buy, exchange and purchase with crypto without leaving the app. Ultimately, software wallet apps are free to download, and are therefore ideal for beginners on a low budget.

Best Noncustodial Wallets for Secure, Convenient Crypto Storage

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