In the rapidly evolving world of cryptocurrency, finding the right wallet to store your assets securely is crucial. As the popularity of Kaspa continues to grow, understanding the various types of crypto wallets available for this unique cryptocurrency becomes essential. A cryptocurrency wallet is where you store your cryptocurrency—either on a physical hardware device (i.e., cold storage) or online through an application, program, or exchange (warm or hot storage).

Whether you're a seasoned investor or a newcomer to the crypto space, this guide will introduce you to the different types of wallets that can hold Kaspa and help you decide on the best option for your needs.

Hot Wallets vs Cold Wallets

Cryptocurrency wallets are differentiated between hot wallets and cold wallets. Most people purchase their first cryptocurrency on an exchange, where the coins are stored at a specific address. This is an example of a hot wallet. Hot wallets got their name from always being connected online. In addition to exchange wallets, other hot wallets include web wallets, mobile wallets, and desktop applications. Since hot wallets are always online, they are beneficial when looking to perform multiple, automated, or rapid trades. 

Users can also store their cryptocurrency in what is known as a cold wallet. In contrast to a hot wallet that is always accessible, cold wallets get their name because they are not always online. Since the digital assets are stored offline as physical objects, they provide enhanced security over hot wallets. The enhanced security makes them preferred for long-term and large cryptocurrency holdings.

General Security Precautions

Given the benefits of using both wallets, users often employ a mix of hot and cold wallets. Generally, it is advised to use a cold wallet for larger account balances. Verifying wallet addresses before finalizing transactions is crucial. It's wise to send a small test amount to a new wallet or before conducting significant transactions to ensure the accuracy of the wallet address. Additionally, safeguarding your seed phrases from unauthorized access is essential. The more times you have to enter a seed phrase, the more likely it is to get stolen. Other safety precautions include only downloading the official application and making sure any physical wallets arrive sealed in plastic. This is to prevent sending funds to a fraudulent wallet address. Also, be wary of any private messages claiming to be from one of the wallet teams.

What is a Seed Phrase?

A seed phrase in cryptocurrency is a sequence of words (typically 12 to 24 words long) that serves as a backup and recovery mechanism for a cryptocurrency wallet. It is randomly generated by the wallet software, using the BIP-39 protocol (Bitcoin Improvement Proposal - 39), and acts as a master key to access and restore the wallet and its associated funds. The seed phrase is crucial because it allows users to regain access to their funds in case their wallet is lost, damaged, or needs to be restored on a new device. It's important to keep the seed phrase secure and private, as anyone who has access to it can potentially access the wallet and its funds. Note that users are not responsible for the seed phrase with custodial wallets.

Custodial vs. Non-Custodial Wallets

A cryptocurrency wallet can be either what is known as a custodial wallet or a non-custodial wallet. The difference between the two depends on who, or what entity, possesses the private keys, usually the seed phrase, mentioned above. Custodial wallets are available through a centralized business - usually a centralized exchange. Users sign up for the wallet through the exchange and are given an account but do not receive the seed phrases for the account. This option provides an easier user experience and is a good choice for someone just getting into crypto and looking for a quick and easy way to purchase cryptocurrency. Also, using an exchange is almost always necessary for a fiat on-and-off ramp. So, most individuals who own crypto have access to at least one custodial wallet. In crypto, there is a saying, "Not your keys, not your crypto." This is due to the risk of exchange hacks and shutdowns that have led to users losing their crypto funds through no fault of their own. 

In contrast to the custodial crypto wallet, there is the non-custodial wallet, where users are responsible for maintaining and securing their wallet seed phrase. The risk with non-custodial accounts is losing the seed phrase, which is the key to the cryptocurrency account. 

Kaspa Desktop Wallets

CLI Wallet
The Kaspa core team released and maintains a desktop wallet, the Kaspa CLI wallet, which stands for "Command Line Interface." Unlike the other wallets on the list, this wallet does not incorporate a GUI (graphical user interface) but uses a minimal interface. It is intended for users with coding experience who want a minimalist experience. 

To set up your Kaspa wallet, you need to generate it through the Command Prompt in Windows. First, download the necessary files from the official Kaspa GitHub and extract them. Ensure you are running a Kaspa node, which can be confirmed when your node shows DAG sync 100%, seen under Advanced Settings, KASPAD. Open the Command Prompt and enter your location, followed by "\kaspawallet" and hit enter. Then, type "create" and set a password when prompted. You will receive an extended mnemonic key and an extended public key. Detailed setup instructions are available on wiki.kaspa.org under "Setting up a CLI Wallet | Kaspa WIKI." Remember, you must run a fully synced node. 

The CLI interface allows users to create a wallet, back it up, and restore it. The wiki also includes instructions for downloading Kaspa core files, creating a wallet, backing it up, restoring it, and setting up a multi-signature wallet.

Kaspa Hot Wallets

Kaspium

Kaspium Wallet is described as "The Ultimate Self-Custodial Wallet for the Kaspa Network" on their homepage. The wallet was first announced in January 2023, revealing the Android test phase for the first mobile wallet for Kaspa. The app was fully launched on September 29, 2023, with the Kaspium v1.0.1 Release, with wallets available on iOS and Android. Kaspium operates as a non-custodial wallet, meaning users bear full responsibility for safeguarding the wallet's seed phrase, which is only stored on the user's device, with no backup. Consequently, misplacing the seed phrase will lead to a loss of funds. The platform is fully open-sourced, with source code available on GitHub. 

Users can create and import wallets through Kaspium. Users are prompted with a 24-word seed phrase when setting up a new wallet. Kaspium is compatible with 12- and 24-word seed phrases if importing an existing wallet. Being compatible with 12 and 24-word seed phrases, makes Kaspium seed phrase compatible with Ledger, KDX, CLI Cold wallets, paper wallet, and Kaspa web wallet. Additionally, one can add a 24-word seed phrase wallet as "watch only" to monitor account balances. The application also enables users to create and import multiple wallets. 

The Kaspium mobile wallets are optimized for a simple user experience and offer several functions, including sending and receiving KAS, viewing transaction history, viewing the UTXO, and seeing all wallet addresses in one list. Native to the Kaspium wallet, users can access a detailed history of previous transactions. Users can specify which Kaspa node they want to work with, with the Kaspium Official node set to default. A feature also allows users to aggregate various UTXOs into one account. One unique feature of Kaspium is the Address Discovery feature that scans for associated accounts with balances on them. 

To send funds using the Kaspium wallet, users can specify a wallet address with an optional note or scan an address QR code. Users can also create and store a Contacts list to save commonly used addresses. Every time you send funds using the Kaspium wallet, the app automatically generates a new address to ensure optimum security. You can also generate a new address connected with your seed phrase. As of September 29, 2023, Kaspium supported balance displays in 38 foreign currencies.

The app was designed with user experience in mind and is available in multiple languages and in light and dark modes. Users can also designate the level of security required to use the app—ranging from a password to a pin to biometrics. Users can save wallet addresses to a contact address book. The app has an auto-lock feature for added security. 

Kaspa Web Wallet

The Kaspa Web Wallet is a free online and mobile wallet affiliated with the official Kaspa website. It utilizes PWA technology (progressive web application) and will work on any standards-compliant browser - desktop and mobile. Seed phrase compatible with Ledger, Kaspium, KDX, CLI, Paper Wallet, Web Wallet

This wallet experienced a DDoS (Distributed Denial-of-Service) attack in August 2023. A DDoS attack is A deliberate attempt to disrupt the regular operation of a targeted server, service, or network by inundating the target or its surrounding infrastructure with an overwhelming volume of Internet traffic. This is similar to a high volume of traffic causing a traffic bottleneck. The risk of having your coins stolen via a DDOS attack is minimal unless you visit a phishing site that is posing as the official one, which is a common motive behind DDOS attacks. 

In the case of Kaspa Web Wallet, the site acts as a proxy between your browser and remote Kaspa nodes, with no user data stored on the site itself. All sensitive information is kept locally in your browser's "local storage," ensuring it remains on your PC or mobile device and does not leave your control. Therefore, user data was safe from the DDoS attack, and no other attacks have since been reported.

KDX Wallet

The KDX wallet, short for Kaspa Desktop eXperience, is a desktop wallet created by the Kaspa core team. It is a GUI (graphical user interface) utility that incorporates Kaspa's main components—including a node, a wallet, and a miner—into a single application. Through KDX, a user can run their own node. A downside to the KDX wallet is that the user must be connected to a node, which usually takes 2 hours to sync to the network.

This wallet is open-source, with the code available on GitHub. It is free to download and use. However, funds may be lost due to computer malfunction or user error. The KDX wallet uses a 12-word seed phrase compatible with Ledger, Kaspium, KDX, and CLICold wallet - but tt is incompatible with 24-word seed phrase wallets like the CLI wallet. 

Chrome Extension Wallets

KasWare Wallet

Kasware is the first open-source browser extension wallet for the Kaspa network, with a mission "to accelerate the adoption of Kaspa by providing a secure, easy-to-use wallet for the community." Created by the Kaspa core team, the open-source code is available on GitHub. KasWare is a non-custodial wallet, meaning users control their private keys. According to the KasWare website, "your private keys are encrypted on your device by your password and are not shared with anyone." KasWare is a hierarchical deterministic wallet, allowing users to manage multiple accounts under one public key. The wallet has recently gained attention due to its support for KRC-20 tokens (Kaspa Request for Comment, the Kaspa non-fungible token standard).

The user should download the Chrome extension and create a password to set up the wallet. Once in the application, you can create a new wallet or import an existing one. You must set up a 24-word seed phrase to create a new wallet. If you're importing from a cold storage device like OneKey or Ledger, only input seed phrases if necessary. Remember, the account is no longer cold storage once private keys are shared. An additional security feature of the KasWare wallet is the support of an optional passphrase for added protection. The KasWare wallet is compatible with the following wallets: Kaspium Wallet, Kaspanet Web Wallet, Kaspa-ng Wallet, OKX Wallet, Tangem Wallet, OneKey Wallet, Ledger Wallet, Core Golang Cli Wallet, and KDX Wallet. 

Additional wallet functions include saving contact addresses to a Contacts book, allowing you to send Kaspa to others or manage your other Kaspa accounts in different wallets. Additionally, the wallet will enable you to save Connected sites in the future. Users can choose the network to interact with, from the default Kaspa mainnet to the Kaspa testnet and the Kaspa Devnet. The wallet supports multiple languages and can be locked, requiring a password to open. A unique feature of the wallet is the ability to discover or find additional wallets connected to the same seed phrases and combine accounts. These functions are useful for cleaning up smaller account balances. Additionally, users can create different names for different wallets.

While not affiliated with any web browser, it is important to be cautious of the ads on any website. During research for this article, ads for MEV bots, which are unaffiliated with the KasWare wallet, were displayed.

Their official links include : Website, Telegram, Discord, Github, X (twitter) and the Chrome Webstore. 

Cold Wallets

Always purchase hardware wallets directly from the source and in new packaging. Do not use the product if the packaging is missing or appears to have been tampered with. Example Tip: Always ensure you purchase a new OneKey hardware wallet from a trusted source, and check for the intact tamper-proof seal to confirm that the device hasn't been compromised.

OneKey
OneKey offers cold storage in thin, lightweight hardware wallets compatible with the OneKey application, with fully open-sourced code available on GitHub. Anyone can view the source code and inspect for vulnerabilities. OneKey is EMVCo Certified, meaning it meets the agreed-upon EMV standards for the safety and security of payment products. It also received a cybersecurity rating of CC EAL 6+(Common Criteria Evaluation Assurance Level 6+). Products are rated on security from EAL 1, lowest, to EAL 7, highest. 

The hardware wallets utilize the THD89 security chip and are powered by a lithium-ion battery, providing up to 120 minutes of charge. The devices are available across a range of different budgets, including the OneKey Pro for 278 USD, OneKey Touch for 249 USD, OneKey Classic 1S for 99 USD, OneKey Mini for 58 USD, OneKey Lite for 19.99 USD, and OneKey Classic for 89 USD. Also available is the OneKey KeyTag at 2 for 59 USD, a backup kit made of aircraft-grade titanium alloy. In May of 2023, OneKey offered a limited edition run of a Kaspa-branded OneKey Classic to celebrate the launch of Kaspa on OneKey.

The OneKey application is accessible as a desktop App for Windows, Mac, and Linux; a Browser Extension for Chrome, Edge, and Brave; a web dApp for Browser Extension; a mobile app for iOS and Android; and a Hardware Bridge. It boasts 24/7 online Customer Service interface support. The wallet is compatible with many third-party software, such as Trezor, MetaMask, Sparrow, etc. As of July 14, 2024, it is compatible with Kaspa, Bitcoin, Lightning Network, and 62 other cryptocurrency networks.

The OneKey wallet is not compatible with other Kaspa wallet addresses. There are multiple explanations for this discussed in Reddit forums. Still, the company representative, OneKey Panda, posted on the official OneKey Discord channel that the cause was due to the public key generation:

 “Our current implementation on Kaspa aligns with the Bitcoin Taproot address, incorporating BIP-0340. However, the public key tweaking is not utilized in other wallets on Kaspa, resulting in different addresses compared to those of other Kaspa wallets. We are considering efforts to ensure compatibility with other Kaspa wallets.”

In February 2023, a group of cryptocurrency white hats, known as Unciphered, discovered a vulnerability with the OneKey mini and was able to hack the device in less than one second. OneKey worked with Unciphered to resolve the issue before disclosing it to the public.  Their official response can be found in this blog post, where they emphasize the following:

“We want to highlight the fact that these attacks cannot be exploited remotely. It would require disassembly of the device and physical access through a dedicated FPGA device in the lab to be possible to execute.

Interestingly, in the process of communicating with each other, Unciphered told us that several other world-renowned hardware vendors had similar issues, while we were the most responsive team and immediately fix the issue. We also paid Unciphered bounties to thank them for their contributions to OneKey’s security.

We put ourselves in the sun and choose to face and solve problems honestly.”

In addition to the cold storage wallet devices, the company offers OneKey cards, allowing users to spend their crypto as fiat at a 1.95% - 1.5%  conversion rate, depending on the card tier. The options are silver, gold, platinum, and black. All currently have no membership fee and offer percentage-based affiliate rebates. A user does not need to pair OneKey cards with a OneKey wallet to use the OneKey cards, but it is recommended. The funds to the OneKey card are in a separate account and are no longer held in cold storage. There is no spending limit to using the cards. Unfortunately, the OneKey card does not support the Kaspa network but supports multiple USDC and USDT pairs, including BTC, ETH, and MATIC.

Tangem

The Tangem Wallet was the first cold storage wallet to support Kaspa. Established in 2017, it has maintained a flawless security record, with no issue reported among 1.6 million cards (as of July 2024). Tangem's headquarters are in Zug, Switzerland, with additional offices in North America, Eastern Europe, and the APAC region. As of July 2024, Tangem serves users in 170 countries. Its principal investor, SBI Crypto Investment Ltd., a digital asset venture investment firm owned by SBI Holdings Inc., invested $15 million in Tangem in 2019. Tangem boasts several technology partners, including Samsung, NXP, UMC, Visa, Kudelski Security, Cortus, and Applus.

The Tangem cold storage wallet consists of a smartphone application paired with two or three plastic key cards protected by a robust, certified chip developed in collaboration with Samsung Semiconductor. The chip is basically a 1mm x 1mm microcomputer and boasts the EAL 6+ security standard. (The Evaluation Assurance Level is a cybersecurity metric on a scale of 0 to 7, with 7 being the most secure.) The Tangem cards come with a 25-year warranty. 

In the original version of the Tangem wallet, we’re not able to know the seed phrase, as it is stored in the chip, to prevent the vulnerability of losing or compromising the seed phrase. However, due to user feedback, the latest version of the Tangem wallet permits users the option of generating a 12 or 24 word seed phrase for new wallets. In addition to requiring the cards to use the wallet application, the application is also protected by a password so that if someone were to find a card on the side of the road, they would not be able to access the crypto in the wallet. Furthermore, two cards are required to reset the password on the application.

The Tangem application is compatible with NFC-enabled (near-field communication) smartphone devices running iOS 14.5 or later and Android 6.0 or later. In the application, users can buy, swap, and sell. Staking is expected to be available soon. Users can download the app from Google Play, Apple App Store, and Github. 

Getting started with Tangem is quick and straightforward, taking just about three minutes, as it is designed to be user-friendly for those unfamiliar with crypto. To set up your Tangem Wallet, start scanning your card with the Tangem app. Once the card is scanned, you'll be prompted to create a wallet and scan the card again. After this, the app will prompt you to back up your wallet by scanning a second or third card. Follow the instructions to finalize the backup process. Next, create an access code to secure your wallet. To add Kaspa to your wallet, follow the app's instructions. Finally, you must scan your card to "sign" all transactions, ensuring they are securely processed. Since the seed phrases are stored in the card, there is no need to remember the seed phrases to access the wallet. 

The Tangem cards were created with durability in mind, and the Tangem team has tested the wallet. The cards can withstand severe temperature ranges from –25° to 50°C (–13° to 122°F); the cards are even fireproof. A video demonstrates a third party, ESL Technology, performing a pressure test, showing that the wallet remains functional after being subjected to pressures of 60 megapascals, equivalent to a depth of 6000 meters. Additionally, the chips are impervious to X-rays, electromagnetic pulses, and electrostatic discharge. There is no need to charge the cards, as they consist only of a chip and an antenna. This design also eliminates potential vulnerabilities related to failure and security.

The code is open source, with users available to check the code on Tangem GitHub. Tangem's firmware has undergone two separate audits. The first was conducted by Swiss firm Kudelski Security in 2018, and the second was carried out by international security lab Riscure in 2023. These audits verified that the firmware is free of backdoors and vulnerabilities, cannot be updated, and does not include concealed algorithms. Help is available 24/7 via the Tangem Tangem Discord and Tangem Telegram channels. The main risk with the Tangem wallet is losing the cards; if you lose all of your cards, you lose your funds. 

The cards are available in two and three pack sets with a two pack of cards for 54.90 USD, and a set of three cards for 69.90 USD on the Tangem website. As with all cold storage wallets, it is important to purchase directly from the manufacturer and ensure the packaging is sealed when you receive it to prevent outside-party fraud. Currently (July 2024), a limited number of Kaspa-themed wallets are available for pre-order on the Tangem website, with shipping expected in August 2024. 

In addition to the Kaspa-themed wallets, Tangem has a new product launch for pre-order (as of July 2024) - the first wearable crypto cold storage device, the Tangem Ring. The Tangem will act like one of the cards and will need the application and one to two additional Tangem cards. It can be purchased pre-ordered in wallet sets with one or two cards and is expected to ship in late September 2024.

Ledger

Ledger has been one of the most recognized names in the cryptocurrency industry. Ledger was one of the first cold storage solutions that was founded in 2014 in Paris, France. In 2023, Ledger closed its Series C funding round with a valuation of roughly 1.5 billion USD.

The Ledger wallet includes a hardware device that interacts with their application, Ledger Live, available on smartphones and computers. Ledger devices use a Secure Element (SE) chip, similar to what is used in passports, to protect users' private keys. There are three current Ledger devices - the Ledger Stax, Ledger Flex, and Ledger Nano Range, which includes the Ledger Nano X and Ledger Nano S.  The Ledger Stax retails for 399 USD, the Ledger Stax at 249 USD, Ledger Nano X for 149 USD and the Ledger Nano S for 79 USD.

Ledger added support for the Kaspa KAS currency on January 30, 2024, as announced in this tweet. While users can store their Kaspa on Ledger devices, the Ledger Live application does not currently support Kaspa. Users can interact with their Ledger Devices using the KasValut web application at https://kasvault.io. CoderOfStuff, a prominent Kaspa enthusiast, created the KasVault application. The code is fully open-source and available on GitHub. 

Even though one cannot use the Ledger Live application to show Kaspa balances or buy, sell, or swap, the application is still required to add the Kaspa application to the Ledger hardware device. While the device is connected via USB, connect to the KasVault online application. The dashboard has three tabs: Address, Overview, and Transactions. Users will be prompted to confirm transactions on the Ledger device. 

Using a Ledger hardware wallet offers several key advantages for securing your cryptocurrency. It is a seed phrase compatible with Ledger, Kaspium, CLICold wallets, paper wallets, and web wallets, providing versatile options for managing your assets. The seed phrase is kept completely offline, enhancing security by preventing online exposure. Unlike software wallets on your phone or desktop, Ledger and OneKey are separate hardware devices, which adds an extra layer of protection against hacks and malware. Additionally, Ledger hardware wallets are known for their reliability, operating with no bugs to ensure smooth and secure transactions. Like KasVault, Ledger incorporates open-source software, which is available via GitHub. 

The downside to using a Ledger wallet to store Kaspa is no Ledger Live support. Additionally, Ledger gained a bad reputation after a data breach in July 2020 released roughly 272,000 customers' personal information. In a message to customers, Ledger emphasized that "there is no way to make any correlation between the data that has leaked and the funds on your wallet."