Coldcard Review: Safe Wallet? Features and Benefits Explored

With the digital realm fraught with various threats like hacking, phishing, and security breaches, safeguarding assets has become paramount for cryptocurrency enthusiasts. As such, standard desktop wallets may no longer suffice, underscoring the critical need for robust solutions that provide foolproof protection.

This is one of the reasons why many crypto owners choose hardware wallets. As a Bitcoin-only hardware wallet, Coldcard has garnered significant attention in the crypto community for its strong security.

Coldcard Wallet Review Summary:

Coldcard is a highly secure and privacy-focused wallet that blasts the standard desktop wallet out the water. As a wallet designed for storing Bitcoin, it stands out for its air-gapped design, PIN entry and strong encryption, making it a robust choice for users who prioritize security over the convenience that a typical desktop wallet provides. However, its advanced features and complex setup may not be ideal for beginners.

The Key Features of Coldcard Wallet Are:

• Bitcoin-Focused Cold Storage: This wallet is offline and completely air-gapped, which keeps your cryptocurrencies safe from online threats like hackers and malware for maximum security.
• Open Source: This means its software can be audited by the community to ensure there are no hidden backdoors or vulnerabilities.
• Secure Elements: Coldcard features a secure element chip, the ATECC608A, to enhance the wallet's security. This chip stores your private key in a highly secure environment.
• PSBT Support: Partially Signed Bitcoin Transactions (PSBT) are supported. It's a handy feature if you want to collaborate with others on a transaction without exposing your private key.
• Micro SD Card Slot: Used for backup and recovery, this makes it easy to back up your wallet and store it in a secure location. No need to rely on pieces of paper.
• PIN Protection and 2FA + Time Lock for Spending: Customizable PIN, which is entered on the wallet's numeric keypad and 2FA for transactions can be enabled. The timelock feature allows you to set a delay on transactions, providing you with a chance to cancel them if something seems amiss.
• Full-Node Integration: Connect to your own Bitcoin full node, ensuring you're not relying on a third party to verify your transactions
• Offline Address Verification & Signing: You can verify your receiving addresses offline by scanning the QR code. This ensures that the address hasn't been tampered with. Offline signing means that you can create and sign transactions without the private keys ever being exposed to a connected device or the internet.
• Tor Support: The wallet can connect to the Tor network for added privacy. It keeps your transactions and IP address hidden from prying eyes.
• Compact Design and High-Quality Display: It's small and lightweight. The durable plastic casing with a sliding cover ensures that it can withstand a bit of wear and tear. High-resolution OLED display, making it easy to verify transactions and addresses.
• Passphrase Support: You can create multiple passphrases to access different wallets on the same device. This is useful for keeping different portions of your Bitcoin holdings separate.
• Secure Supply Chain Practices: Tamper-evident packaging and secure manufacturing facilities.

This Coldcard review will delve into its key features, provide comparisons to other products, explore its benefits and detail its pros and cons to help you decide if it's the right choice for safeguarding your Bitcoin.

But first, a primer on hardware wallets.

What is a Cold Storage Hardware Wallet?

First things first, a cold storage hardware wallet is like Fort Knox for your digital riches. It's a physical device designed to keep your cryptocurrencies safe and sound, far away from the prying eyes and nimble fingers of hackers. Here are some of the benefits of a hardware wallet:

• Top-Notch Security: The primary advantage of using a cold storage hardware wallet is security. Unlike hot wallets (online wallets), these gadgets aren't connected to the internet, making them practically immune to online threats. Your private key is stored offline.
• Protection from Hacks: With countless tales of crypto heists and hacking attempts, you'll sleep soundly knowing your crypto holdings are safe from these cyber bandits. Cold storage wallets act as a brick wall between your assets and the digital Wild West.
• Peace of Mind: When your life savings are tied to a bunch of numbers and letters, it's easy to feel a bit uneasy. A hardware wallet adds an extra layer of comfort. You physically hold the device, which requires a PIN or password for access, making it nearly impenetrable.
• Backup and Recovery: Losing your hardware wallet doesn't mean your funds are lost forever. Most hardware wallets come with a recovery seed, a series of words that can be used to restore your wallet on a different device.
• User-Friendly: Hardware wallets are designed with simplicity in mind. You don't need to be a tech whiz to use them. They often have user-friendly interfaces, ensuring that anyone, from beginners to experts, can navigate the crypto space confidently.
• Long-Term Storage: If you're in it for the long haul, a hardware wallet is your best friend. It's perfect for storing assets you don't plan to touch for a while. You can stash it away in a safe place and revisit it whenever you please.
• Independence: Hardware wallets put you in control. You're not reliant on third-party services, which can be vulnerable to hacks or downtime. It's your crypto, and you're the boss.
• Binary Format: These wallets use a binary file format, which means the data is stored in a machine-readable format consisting of 0s and 1s. This binary format is more space-efficient and can be read and written more quickly than human-readable formats like JSON or XML.

In the world of cryptocurrencies, security is your best friend. A cold storage hardware wallet offers that security with a side of convenience. When it comes to your financial future, it pays to be cautious and a hardware wallet is your ticket to a peaceful night's sleep in the crypto jungle. You can learn more about hardware wallets in our articles:

• How Hardware Wallets Work
• The 5 Most Secure Hardware Wallets

What Is Coldcard Wallet?

Created by Coinkite, Coldcard is a cutting-edge wallet that is designed to provide secure storage and management of Bitcoin.

At its core, it serves as a cold storage device, meaning it is an offline wallet that never connects to the internet. This fundamental security feature shields your cryptocurrencies from online threats like hacking, malware, and phishing attacks. Its air-gapped nature ensures that your private key remains isolated from potential cyber threats, a crucial aspect in the world of digital finance.

One of the distinguishing features is its emphasis on user privacy and control. The device is designed to be used independently, without the need for a computer or a smartphone, making it ideal for those who prioritize self-sovereignty and trustlessness in their Bitcoin management. This isolation reduces the risk of attack vectors, ensuring that your digital assets are as secure as possible.

Moreover, Coldcard incorporates advanced security measures, including support for multi-signature transactions and unique features like the "brick pin" mode, which allows users to irreversibly wipe the device in the event of a security breach. It also features a secure chip for cryptographic operations and employs BIP-39 and BIP-32 standards for wallet compatibility.

Coldcard is a high-security wallet that offers exceptional protection for your Bitcoin and other digital assets. Its offline operation, emphasis on user privacy and robust security make it an appealing choice for those who take their cryptocurrency security seriously.

In addition to its strong security, Coldcard is known for its open-source nature. Few hardware wallets provide this level of transparency as it allows the community to audit the wallet's code for vulnerabilities. Open-source wallets are generally considered more trustworthy, as they are subject to peer review, reducing the likelihood of hidden backdoors or other security flaws.

Another notable advantage of Coldcard is its compatibility with popular Bitcoin desktop wallet software like Electrum and Wasabi Wallet. This makes it convenient for users who want to manage their Bitcoin holdings using familiar software interfaces while still benefiting from Coldcard's enhanced security.

However, like any product, Coldcard has its drawbacks. One potential disadvantage is its relatively steep learning curve. While its security is robust, it may be challenging for newcomers to fully grasp. The passphrase system, in particular, can be complex to set up and manage, which might deter less experienced users.

Another consideration is the price. It's not the most affordable on the market and its advanced security measures are reflected in the cost. If you're on a tight budget, you may need to weigh the benefits of its security against the expense.

Overall, Coldcard stands out as secure and reliable, particularly for Bitcoin enthusiasts. Its specialized focus on Bitcoin, strong security and open-source nature make it a compelling choice for safeguarding your digital assets.

Coldcard Wallet Review: Features

Let's dive in and explore what makes this Bitcoin hardware wallet a popular choice for the security-conscious. We've broken down the features into four categories: Security, transaction, privacy, connectivity and user-friendliness. So, grab your favourite beverage, get comfy and let's take a look at what this product has to offer in the land of Bitcoin security and management.

Security Features

Protecting your digital assets from potential threats is of the utmost importance. With Coldcard, there's a no-compromise approach to security, ensuring that your Bitcoin holdings remain impervious to online vulnerabilities. From ultimate cold storage to open-source transparency and a secure element chip, this wallet provides an effective bulwark against online risks. 

1. Cold Storage: This means it operates entirely offline, eliminating the risk of online threats like hacking or malware. Your private keys never touch an internet-connected device, ensuring the highest level of security for your Bitcoin.
2. Open Source: One of the most significant strengths is its open-source nature. This means that its software is transparent and can be scrutinized by the community for potential vulnerabilities or backdoors. This transparency builds trust among users as they can be confident in the wallet's integrity.
3. Secure Elements: Features a secure element chip, the ATECC608A, which is dedicated to storing and protecting your private keys in a highly secure environment. Even if the physical device is compromised, the secure element ensures that your private keys remain inaccessible to unauthorized parties.
4. PIN Protection: Employs a customizable PIN for added protection. You need to enter this PIN using the wallet's numeric keypad to access your funds. This PIN acts as an extra layer of security in case your hardware wallet is lost or stolen, preventing unauthorized access.

For information on how to protect your crypto, check out our crypto safety guide.

Transaction Features

Smooth and secure transactions are at the heart of any cryptocurrency wallet. Coldcard excels in this aspect, offering features like Partially Signed Bitcoin Transactions (PSBT) and offline address verification. These capabilities ensure that your transactions are not only safe but also versatile and adaptable. The inclusion of a micro SD card slot and a timelock feature further empowers you to have full control over your Bitcoin transactions.

1. PSBT Support: PSBT is a powerful feature for those who want to collaborate with others on a transaction. It allows you to share the partially signed transaction without exposing your private keys. This enhances both security and flexibility.
2. Micro SD Card Slot: The wallet offers a Micro SD card slot for backup and recovery. This feature simplifies the backup process, allowing you to create secure offline backups. No need to rely on physical pieces of paper or other cumbersome methods.
3. Offline Address Verification: Coldcard ensures the authenticity of your receiving addresses by allowing you to scan the QR code of the address offline. This verification step guarantees that the address hasn't been tampered with or substituted during the transaction process, which is crucial for security-conscious users.
4. Timelock Feature: The timelock feature is a valuable tool for adding an extra layer of control to your transactions. It enables you to set a delay on transactions, giving you a window of time to cancel the transaction if any suspicious activity is detected, offering an added safeguard.

Privacy and Connectivity

Coldcard provides users with a range of features that shield their activities from prying eyes. Whether it's connecting to your own Bitcoin full node, enabling two-factor authentication (2FA), or utilizing the Tor network for enhanced anonymity, Coldcard offers you the tools to protect your privacy while staying connected to the Bitcoin network. This hardware wallet is all about putting you in control of your cryptocurrency experience.

1. Full-node Integration: Offers the capability to connect to your own Bitcoin full node. This feature ensures that you're not relying on a third party for transaction verification, enhancing your privacy and security while using the Bitcoin network.
2. 2FA for Spending: For those who seek advanced security, Coldcard can be set up for two-factor authentication (2FA) for spending. This means you'll need to approve transactions on a separate device, such as your smartphone, providing an additional layer of security against unauthorized transactions.
3. Tor Support: Can connect to the Tor network, a privacy-focused network that conceals your IP address and enhances anonymity. This ensures that your transaction data and IP address remain hidden from potential eavesdroppers, making your Bitcoin usage more private.
4. Multi-Language Support: The wallet is designed with a global audience in mind. It supports multiple languages, making it accessible to users around the world, regardless of their native language.

User-Friendliness

While security and privacy are paramount, user-friendliness is equally significant. A hardware wallet must be accessible and easy to use. Coldcard's compact design, support for multiple passphrases, and high-quality display provide users with the ability to manage Bitcoin holdings efficiently. Furthermore, its compatibility with popular wallets expands on its capabilities. Coldcard combines robust security with user-friendly design to offer you the best of both worlds in four simple ways:

1. Compact Design: The compact and lightweight design makes it easy to carry and store securely. The durable plastic casing ensures that you can withstand everyday wear and tear without compromising its functionality.
2. Passphrase Support: The wallet allows you to create multiple passphrases for accessing different wallets on the same device. This feature is especially useful for keeping different portions of your Bitcoin holdings separate.
3. High-Quality Display: A high-resolution OLED display makes it easy to verify transactions and addresses, allowing users to have a clear and accurate view of their wallet activities.
4. Compatibility with Popular Bitcoin Wallets: Compatibility with popular wallets like Electrum and Wasabi Wallet, making it convenient for users to integrate the wallet into their existing cryptocurrency management setups. This compatibility extends its usability and versatility.

Coldcard Design and Build

The design and build are that of a basic calculator; it's not as fancy as other hardware wallets, but don't let that fool you. It has a compact and efficient construction with a sliding cover. The device is crafted to offer a robust and practical solution for those seeking a secure and reliable way of storing Bitcoin. Let's take a look at the key components:

• Compact Size: Boasts a compact form factor with dimensions of 88 x 52 x 10 mm when the cover is on and even more streamlined at 86 x 50 x 7.5 mm when the cover is removed. This compact size makes it highly portable and easy to carry in a pocket or wallet, providing convenience for those who are always on the move.
• Lightweight Construction: Weighing in at approximately 30 grams, it is exceptionally lightweight. This is a valuable feature for users who require a portable and unobtrusive device for securing their Bitcoin. Its minimal weight ensures it won't weigh you down during daily use or when travelling.
• Efficient Power Consumption: Operates efficiently, consuming only 50mA at 5 volts. This low power consumption makes it energy-efficient and helps to ensure that it won't drain power sources quickly, allowing for prolonged usage and reducing the need for frequent charging or battery replacements.
• High-Quality Materials: The device is built with high-quality materials to ensure durability and longevity. Its robust construction not only protects it from physical damage but also helps safeguard it against environmental factors that could compromise its functionality.
• Versatile Connectivity: Boasting versatile connectivity options, including USB-C and a microSD slot. These connectors allow for seamless integration with various devices, making it easy to set up and use. The microSD slot, in particular, facilitates secure data storage and backup, ensuring that your cryptocurrency keys and transactions are protected.

Coldcard Mk4 is a highly secure device with no thrills or nonsense; just a well-designed product for a single purpose. Its compact size, lightweight construction, energy efficiency and durable materials contribute to its overall usability and long-term reliability. The inclusion of versatile connectors further enhances its functionality.

How to Backup and Restore Coldcard

Among the tools designed to protect your assets, the Coldcard wallet stands out for its security traits. However, it's not immune to the unexpected: hardware issues, memory loss or theft can put your finances at risk.

This is precisely why understanding how to back up and restore your Coldcard isn't just good practice, it's an absolute necessity.

Imagine a scenario where your Coldcard is stolen or lost and all your cryptocurrencies are seemingly gone. What stands between you and a potential financial disaster is a secure backup. By following a carefully crafted tutorial (such as the one in this article), you can create a backup of your wallet. This backup, stored on a micro SD card, serves as a fail-safe. If something goes wrong, it's your path to recovery.

However, having a backup is only part of the equation. Knowing how to restore your Coldcard device from that backup is equally important. 

Here's a step-by-step tutorial on how to back up and restore your Coldcard wallet:

Backup:

1. Prepare Your Materials:

• Coldcard hardware wallet
• A Micro SD card (4GB or larger)
• A computer with an SD card reader
• A clean and secure environment free from any potential security risks.

2. Power Up the Coldcard:

• Connect your Coldcard to a computer or power source using a micro-USB cable.
• Access the Settings

3. Create a Backup:

• In the "Settings" menu, you will find an option to create a backup. Select this option.
• Follow the on-screen instructions. You'll be asked to insert a Micro SD card into the Coldcard.

4. Backup Encryption (Optional):

• You have the option to encrypt the backup with a strong passphrase. This adds an extra layer of security.
• If you choose to encrypt the backup, you will need to enter and confirm a passphrase.

5. Backup Confirmation:

• Once you confirm the backup process, the Coldcard will create a backup file on the micro SD card.

6. Verify the Backup:

• Safely eject the Micro SD card from the Coldcard and insert it into your computer.
• Open the backup file to ensure it contains the necessary information for restoring your wallet.

7. Store the Backup Securely:

1. Keep the micro SD card in a safe and secure location, preferably in multiple copies and in separate physical places.

Restoration:

1. Prepare Your Materials:

• Coldcard hardware wallet
• The micro SD card containing your backup
• A computer with an SD card reader
• A clean and secure environment

2. Power Up the Coldcard:

• Connect your Coldcard to a computer or power source using a micro USB cable.

3. Access the Settings:

• Navigate to the "Settings" menu on your Coldcard.

4. Restore from Backup:

• In the "Settings" menu, select the option to restore from backup.
• Insert the Backup Micro SD card
• Insert the Micro SD card containing your backup into the Coldcard.
• Enter Passphrase (if encrypted)
• If you encrypted your backup, you will need to enter the passphrase that you set during the backup process.

5. Follow Instructions:

• The Coldcard will guide you through the restoration process. Follow the on-screen instructions carefully.

6. Verify the Restoration:

• Once the restoration process is complete, verify that your wallet and its balances have been successfully restored.

7. Eject and Secure the Backup:

• Safely eject the micro SD card from the Coldcard and store it securely again.

8. Test Access:

• Confirm that you can access your cryptocurrency funds on your restored Coldcard.

Remember to keep your backup and passphrase (if used) in a highly secure location. Losing access to your backup could result in the loss of your funds. Always follow best practices for securely storing your Coldcard and associated materials.

How Much Does Coldcard Wallet Cost?

Currently, the retail price for the Coldcard Mk4, its only wallet offering, is $157.94. However, you can use promo code CKBTC to get 5% off your purchase if you choose to pay in Bitcoin. Additionally, there’s free shipping provided if you purchase over $500 worth of products.

Which Cryptocurrencies Does Coldcard Support?

Coldcard has a very firm stance when it comes to which cryptocurrencies they support and their decision is very obvious. It is a Bitcoin-only hardware wallet and also supports Bitcoin Testnets. According to their website: 

"Bitcoin and Bitcoin Testnet are supported. COLDCARD does not support altcoins." - Coldcard

Coldcard Mk4 vs. Trezor Model T

Let's compare the main differences between the Coldcard Mk4 and the Trezor Model T.

Security Highlights:

The main security differences between the Coldcard Mk4 and the Trezor Model T are that the Coldcard Mk4 offers stronger protection against phishing and man-in-the-middle (MiTM) attacks with its onboard anti-phishing features and encrypted USB communication. Additionally, it provides encrypted backup via microSD, which the Trezor Model T lacks as Trezor relies on the traditional recovery phrase model and offers a passphrase as additional security. 

Both devices support a self-destruct PIN, but the Coldcard Mk4 also includes a duress PIN for added security. Trezor's response to this is the ability to set decoy passphrases.

Supply Chain and Physical Security:

When it comes to supply chain and physical security, the Coldcard Mk4 is superior. It is linked to serialized, tamper-evident packaging, ensuring that it hasn't been tampered with during the shipping process. Furthermore, the Coldcard Mk4's viewable electronics and epoxy-protected components make it more resistant to physical tampering compared to the Trezor Model T.

Device Design:

In terms of device design, both the Coldcard Mk4 and Trezor Model T offer a Micro SD card slot and USB-C connector. However, the Coldcard Mk4 stands out with its physical keypad and dedicated secure element, which provides an extra layer of security. It is also compatible with NFC and supports Bitcoin only, unlike the Trezor Model T, which is more versatile in terms of cryptocurrency support.

Seed Options:

In terms of seed options, the Coldcard Mk4 offers more flexibility and security. Users can increase seed-generation entropy, verify seed generation, utilize BIP-85 seeds, seed XOR integration, and employ temporary seeds and a seed vault, which are not available on the Trezor Model T.

If you're interested to know about the Trezor Model T, check out our full review.

Coldcard Mk4 vs. Ledger Nano X

Now, let's take a look at how the Coldcard Mk4 stacks up against the Ledger Nano X.

Security Highlights:

In terms of security features, the Coldcard Mk4 outperforms the Ledger Nano X in every aspect. It has a verifiable source code, onboard anti-phishing protection, fully air-gapped operation, encrypted USB communication, encrypted backup via microSD, self-destruct PIN, and the option for a decoy/duress wallet PIN, while the Ledger Nano X lacks these features.

Supply Chain and Physical Security:

In terms of supply chain and physical security, the Coldcard Mk4 also excels. It is linked to serialized, tamper-evident packaging, features viewable electronics, and has epoxy-protected components, whereas the Ledger Nano X does not have these in place.

Device Design:

In terms of device design, both devices feature a USB-C connector. However, the Coldcard Mk4 includes a Micro SD card slot, a physical keypad, and dedicated secure elements, while the Ledger Nano X does not have these features. The Coldcard Mk4 is also designed exclusively for Bitcoin, which may be a limitation or an advantage depending on the user's cryptocurrency preferences.

Seed Options:

When it comes to seed options, the Coldcard Mk4 provides more flexibility and security. It allows users to increase seed-generation entropy, verify seed generation, and supports various seed-related features, while the Ledger Nano X lacks these options.

In summary, the Coldcard Mk4 offers a higher level of security and physical security measures with more versatile seed options compared to the Ledger Nano X. For more on the Ledger Nano X, read our full review.

Coldcard Review: Closing Thoughts

The Coldcard stands out as a remarkable hardware wallet for the Bitcoin enthusiast. Its unique focus on Bitcoin-only support sets it apart from competitors like the Ledger Nano X and the Trezor Model T. This specialization ensures the utmost security and simplicity for Bitcoin users.

Pros include its unparalleled security, with its air-gapped design and robust encryption, it offers peace of mind for the most security-conscious users. Its open-source nature also appeals to technically advanced individuals, as they can review the code for transparency. Coldcard's multi-signature support and compatibility with popular wallets like Electrum further enhance its appeal for advanced users seeking intricate control over their Bitcoin assets.

As for cons, the Bitcoin-only support, while a strength for Bitcoin maximalists, can be a limitation for those who hold multiple cryptocurrencies. Additionally, its technical and advanced nature may intimidate beginners. The initial setup process might be slightly more involved compared to more user-friendly cryptocurrency hardware wallets like the Ledger Nano X and Trezor Model T.

If you're a Bitcoin purist, the Coldcard is a solid choice. However, if you desire a more versatile solution for managing multiple cryptocurrencies, the Ledger Nano X and Trezor Model T offer broader support. If you like the idea of having an SD Card backup but want multi-asset support, I would recommend checking out BC Vault.