Tangem Review 2024: Safe Cold Wallet? Pros, Cons, and More!

Here at the Coin Bureau, we review a lot of crypto wallets and receive requests to review more than we have time for. 

Many hardware wallets released to market aren’t that exciting, to be frank. In crypto, we seem to have a habit of copy/pasting what already exists. Look no further than the endless Uniswap clones, L1s that all promise to do the same thing and a seemingly endless line of “new” NFT collections that are undistinguishable from what has already been created.

Many hardware wallets fall into the same vein: cheap plastic, using the same security chips and the same BIP39 Hierarchical Deterministic recovery phrase method as the dozens of wallets already on the market that work the same way, failing to innovate.

That is what excited us about the Tangem wallet as it was first rolled out. Finally, there was a new approach to crypto storage, a new method and type of device that broke away from the status quo. However, as with any new approach that moves away from tried and tested methods, we need to wonder: Is Tangem safe?

That is what we are going to explore in this Tangem Wallet review. We are going to look at the security of the device, its features, pros and cons, and how it works. This review aims to help you determine whether or not Tangem is a viable solution for taking self-custody of your crypto.

Unveiling the Tangem Wallet

There is no denying that many traditional hardware wallets are clunky and quirky in design. I don’t think anyone has ever set up their first hardware or software wallet and thought, “Ah yes… this is familiar and totally makes sense.”

Many of us forget what it was like the first time we set up a self-custodial wallet. We forget how alien and unfamiliar the process of writing down a recovery phrase is and understanding its importance as we have gotten used to things like “I forgot my password” buttons, and how odd it is that a little Fox pops up on our screen asking us to sign transactions when using MetaMask.

Until blockchain technology, Web2 had no experiences that mirrored the Web3 experience and all the quirks that come with it. 

The team at Tangem seem to understand the pain points and hurdles better than most and has created what they feel is a solution to traditional hardware wallets and their cumbersome design and operations. Not only is Tangem extremely beginner-friendly and convenient, but is also arguably more secure as it does away with the single point of failure risk that exists with traditional wallets. 

An estimated $100 billion worth of crypto has been lost due to seed phrase mismanagement with traditional hardware wallets, so the fact that Tangem does away with the single point of failure risk that exists with wallets that use a traditional seed phrase is certainly noteworthy and preferable by many. 

The Tangem hardware wallet is a card-shaped self-custodial wallet that empowers users with crypto self-custody. The design is sleek and functional, with the device coming in at no larger than a standard credit card, making this wallet ideal for crypto use on the go or easy concealment someplace safe.

The card works via NFC communication with your mobile phone, the same technology that allows us to use the tap feature to make purchases with our bank cards. NFC technology is the secret that allows this wallet to be used without fiddling with a recovery phrase written on paper. Simply tap the card to your phone with the Tangem app installed to access the app and transact. This acts as a functional 2FA with the Tangem card being the possession factor and the access code being the knowledge factor. It's about as easy as it gets. 

Now, for anyone wearing their security hats reading that previous section about not needing a recovery phrase, you may be thinking “No way am I using Tangem!” Many old-school crypto users are hesitant to use a wallet that does not use the standard BIP39 compatible recovery phrase, and for good reason. If Tangem goes out of business and you lose the Tangem cards or your mobile with the Tangem app, how can you recover your funds?

The Tangem team is a step ahead of you here. We agree that there should never be a centralization risk when using a wallet. You want as many backup plans as possible and never have to rely on one entity for the security of your funds. That is why Tangem removed centralization risk and reliance on them as a company and provided users with full access to their recovery seeds from within the Tangem app for users who want access to it. 

If Tangem ever went bust or you simply wanted to recover your funds in another wallet, accessing your seed phrase within the app is a breeze, so no worries there. Plus, no Tangem servers are involved in sending and receiving transactions, so if the company went bust, no sweat. Here is a diagram showing how Tangem would work in an “apocalypse scenario” where the company ceased to exist:

Another thing we really appreciate about the Tangem app is that users can swap, buy, and sell assets from directly within the Tangem wallet. This is not only incredibly convenient, but removes another risk, the third-party counterparty risk of using a centralized exchange. With Tangem, you never give up custody of your funds while buying and selling cryptocurrency. We will cover these features in more detail further on.

Tangem Wallet Team & History

Tangem, established in 2017 and headquartered in Zug, Switzerland, set out with a mission of revolutionizing the hardware wallet industry by specializing in smartcard wallets. Their flagship product, the Tangem wallet, has been praised for being the quickest-to-set up and easiest-to-use wallet on the market today. 

The company has enjoyed a level of success and raised enough capital through funding rounds that they have been able to expand business operations with branches located in North America, Eastern Europe and APAC.

Tangem received funding of $15 million from SBI Crypto Investments Ltd. in 2019, and according to CBInsights, has raised a total of $23 million over two funding rounds.

The team is comprised of impressive leadership members with a combined experience of over 80 years.

Andrey Kurennykh (Co-Founder and CEO)- Andrey has more than two decades of experience working in technology and management. Prior to Tangem, he held positions as the Head of Mobile Solutions at Compulink Group, was the Managing Director and Founder of Airtime ATMs, and the CIO of MosMart, among others. Andrey studied Applied Mathematics at Moscow Aviation Institute.  

Andrey Lazutkin (Chief Technology Officer)- Andrey has been in the Digital Products and Technology field for over 15 years, specializing in FinTech. Beyond an aptitude for technology, Andrey is also an entrepreneur who has held key positions in startup companies. Before jumping on board Tangem, he held positions such as the Head of Mobile Development at Alpari, worked as an iOS developer, and received his Master’s degree in Mathematics and Computer Science at Vladimir State University.

Vijay Sondhi - Vijay has over 27 years in Finance and Management, including holding positions such as CFO and CEO for financial and FinTech institutions. Vijay sat on Tangem’s Board of Directors for over 5 years and recently left the company.

Patrick Storchenegger - Patrick has over 20 years of experience in law, corporate taxation, legal consulting, and notary services, making his skills and experience a valuable asset for Tangem. Patrick is also the owner and manager of PST Legal & Consulting and has worked as a Tax Lawyer for PWC.

Tangem Wallet Key Features:

Tangem Wallet comes in the form of a pack of 2 or 3 NFC-enabled cards, making this the most streamlined and easiest-to-use crypto wallet we’ve reviewed. Here are some of the key features and highlights:

• Extremely beginner and user-friendly
• Over 6,000 assets supported
• Significantly more durable than other wallets
• No need for a recovery seed. Optional recovery phrase if needed
• Works seamlessly with the Tangem Mobile app
• $69 for a 3-card set, $54 for 2 card set
• Buy, sell and swap crypto within the app 

User-Friendly Design and Functionality

As mentioned, the Tangem Wallet exceeds all known competition when it comes to being user-friendly in both design and app functionality. Because most actions happen on the mobile phone and not a hardware wallet, using Tangem feels familiar and intuitive, unlike the clunky process of navigating operations on other hardware wallet devices.

After testing the wallet ourselves, we can confirm that this is the quickest and most simple wallet we have set up, with a setup time ranging from 1-3 minutes and no fiddly recovery phrases to write down, no holes needing to be punched into metal, no QR code scanning, nothing but a simple tap per card and setting a password/biometrics and the wallet is ready to go. 

Here is a look at how Tangem compares to the competition:

Sending and receiving is also straightforward. Simply copy and paste the address to which you want to send funds, or use a QR code scanner from directly within the Tangem app, select the network fee or keep it at the default, confirm the transaction, tap the Tangem card to the phone for verification and viola, you are done!

Pro Tip: It is a good idea to use QR codes when possible when sending crypto transactions to avoid typos and bypass malware that can hijack your clipboard. If QR code functionality is not available, copy and pasting addresses is the next recommended step to avoid typos. However, even when copy/pasting addresses ALWAYS double-check them for accuracy as clipboard hijacking malware has become an issue and could swap your intended address with one of a hacker. 

Another thing we appreciate with Tangem is you do not need to have access to the cards to open the wallet and check your funds. The app can be opened and viewed at your leisure, all while keeping the cards secured in a secret location. This is in contrast to some other wallets where you need to dig them out of their hiding places and plug them in just to see your portfolio and assets, so this is a nice little perk with Tangem.

Tangem Wallet Specifications:

Coming in at a mere 6g, the card-sized wallet is 85.6mm in length, 54mm in height and just 1mm thick. 

Tangem Security: Is Tangem Safe?

Tangem Wallet is considered a safe and secure hardware wallet for storing digital assets. Its technology and features contribute to its security, including:

Secure chip technology: The wallet's chip is certified with EAL6+, the highest level of chip protection, the same certification as the chips used in the banking sector and passports. The chip is highly resistant to dust, water, extreme temperatures, X-rays, and electromagnetic pulses.

Random private key generation: The card's chip generates a private key with a True Random Number Generator (TRNG),  which never leaves the card. This ensures that the private keys are not known by Tangem nor could be intercepted in any scenario. 

No copies exist outside the cards and because the card does not have a screen or online connectivity, bad actors have no way of viewing and compromising the private keys.

The entropy for the private key generation is taken from the chip's physical sensors. This secure key generation process eliminates the need for mnemonic phrases, seed phrases, or other methods that may post a security vulnerability. Tangem also commits to user privacy and does not access personal data, further enhancing trust, transparency, and security.

Independent firmware audits: Tangem’s firmware has been audited twice. First in 2018 by the Swiss company Kudelski Security and another in 2023 by Riscure, an international security lab. Both audits confirmed that the firmware has no backdoors or vulnerabilities, is not updatable, and contains no hidden algorithms.

Multiple backup cards: Tangem Wallet comes with a set of 2 or 3 cards, allowing users to back up their wallet. Geographical splitting of the cards can help protect against risks of floods, fires, etc.

Open-source app code: Tangem's app code is available on GitHub, allowing anyone to verify its security and check that there is nothing malicious in the code. That app has been verified secure with no backdoors or collecting of personal data.

Tangem's commitment to user privacy and security is one of the many reasons why it has become a trusted choice by many for storing digital assets. Tangem ensures that users can have peace of mind when it comes to their digital assets. 

Risks

While Tangem's approach greatly enhances convenience, it is not without its risks. Loss of the physical Tangem card will result in the inability to access your funds. Fortunately, Tangem addresses this issue in two ways.

First, you can order a pack of 3 cards. This will allow you to keep two cards safely stored in a secure location. In the unlikely event that you lose two of the cards, you may want to consider moving your funds to another wallet.

Second, Tangem has given users the ability to access a traditional recovery phrase as an additional backup should they choose not to rely on the cards for restoring a wallet.

Then there is the concern that the Tangem app is installed on a device with online connectivity. This has put some people off Tangem as we know that mobile wallets and software wallets are less secure than hardware wallets, but just because the Tangem app is installed on a mobile device, that does not mean it has the same vulnerabilities. Tangem is neither a software nor a mobile wallet, and unlike software wallets, Tangem transaction signing happens offline in the same way as hardware wallets, and communication is done via NFC, not internet, removing the primary attack vector that plagues software and mobile wallets.

The fact of the matter is that all hardware wallets need to interact with an app or online interface to initiate transactions. Trezor and Ledger devices are primarily tethered to a computer and need to function in conjunction with apps, Tangem simply interfaces with an app on a mobile device instead of an app on a computer, which has no known negative impacts on security.

Some security advocates have raised concerns over the cards being NFC-enabled, as there are known security risks involved with this technology. There have been scammers for years walking around with devices that can activate the NFC communication in our bank and credit cards to steal funds, which is why most wallets that we use to carry cards and cash these days are made with RFID-blocking material. 

However, this concern is largely invalid with Tangem as you need both the card and the mobile app with password to transact. Simply tapping into the NFC chip of the Tangem card will not allow bad actors to steal funds. To date, there are no known exploits that would allow this and Tangem security chips are EAL6+ certified, the highest certification available. 

There are also some who have raised concerns that a compromised smartphone may initiate a malicious firmware update. While this is a factor with some wallets, Tangem wallet’s firmware is in the chip within the card and cannot be updated, effectively removing that as a risk.

It is also worth highlighting that a compromised smartphone may record pins, passwords and biometrics. This risk is not specific to Tangem, but if a hacker accesses your mobile and records pin codes and passwords, they could wreak havoc on your entire digital life. This is always a risk to be aware of any time you have an online presence, Tangem sidesteps this risk by design with the Tangem cards. An attacker would need to compromise your phone and have access to your cards, which is quite unlikely.

There are two non-Tangem-specific concerns we feel users should be aware of. Clipboard-hijacking malware has been plaguing the crypto industry for years, regardless of your wallet of choice. This malware has the ability to swap out the receiving address you copy with that of a hacker, and when you paste the address, the hacker’s address is pasted instead of the intended one that the user copied. There is also address poisoning to be aware of. The best way to circumvent these risks is to always double-check receiving addresses and Tangem also features QR code scanning functionality, which effectively eliminates these risks.

As Tangem is a relatively new entrant in the industry and is providing a new type of product, there are understandably many misconceptions floating around in the space. I hope this section has helped clear up some of the unfounded concerns and we were able to highlight some of the factors to be aware of for anyone deciding on the best crypto wallet for them.

In our opinion, Tangem has very few risks and is considerably more secure than using an online software wallet like MetaMask or Trust Wallet and is immeasurably safer than keeping funds on an exchange. We cover why keeping funds on software wallets and exchanges is the highest level of risk one can take in our article on Crypto Safety.

Tangem also deserves an additional nod for their openness and transparency. If you are weighing up the pros and cons of the risks, Tangem released this comprehensive security document, going into great detail on Tangem’s security. This document is considerably more comprehensive than other companies we’ve reviewed and we applaud them for that. 

Ultimately, we feel that the convenience of Tangem far outweighs the risks and have no issues recommending it to users looking for a cost-friendly and seamless way to interact with crypto, especially if Tangem can reduce reliance on software wallets or keeping funds on an exchange.

How Tangem Wallet Works

Tangem employs a distinctive approach to hardware wallets, deviating from conventional designs. Traditional hardware wallets most commonly resemble USB sticks or smartphones, which store a user’s private keys. Traditional hardware wallets often feature a small screen for transaction verification and incorporate recovery seed phrases as an additional security measure in the event of misplacement or the need to recover funds. Popular wallets such as Trezor and Ledger feature small buttons for navigation or a touch screen on the device itself.

In contrast, Tangem's hardware wallet offers a more streamlined and innovative solution. It utilizes NFC technology to verify cryptocurrency transactions directly on a connected smartphone, eliminating the need for recovery seed phrases, batteries, or cables. The process is simplified to a straightforward tap-and-go method. The corresponding mobile app is also simply designed and well laid out, making the process familiar for those of us who are familiar with smartphones, which should be most people these days. This familiar approach is a contrast to the unfamiliar experience associated with most other hardware wallets where the functionality is nuanced and alien.

In summary, Tangem presents a departure from traditional hardware wallets, offering simplicity and innovation. Embracing Tangem means adopting a secure and user-friendly experience, transforming the complexities of traditional hardware wallets into a simple tap-and-go process.

Buying, Selling and Swapping Cryptocurrencies

This may be one of our favourite features of Tangem as it isn’t available with most other crypto wallets, adding to the already industry-leading convenience of this product. 

Swapping assets within wallets has been a popular feature for quite some time and Tangem does not disappoint with this functionality. Tangem utilizes Tangem Express, a built-in aggregator for CEXs and DEXs, which allows users to perform cross-chain and same-chain swaps frictionlessly. By harmoniously integrating with the DEX aggregator 1inch and the CEX ChangeNow, users can be confident that they are receiving the best rates available among the leading exchanges. 

Here are some of the benefits of using Tangem Express for swaps:

Simple and convenient- Tangem Express automatically optimises the trade route via DEXs, CEXs, and Bridges and makes cross-chain swaps possible. What is even better is that the Tangem interface takes the complexities out of DeFi and provides a simple user interface for quick and effective swaps.

Good rates- by allowing you to pick between various swap providers and entrusting the leading DEX aggregator in the industry, you can be confident that you are receiving competitive rates.

Full control- Users never have to give up access to their funds and trust a third party for custody. The user remains in complete control of their private keys and assets for the entire swap process.

Ample Token Support- Tangem Express allows you to exchange many tokens across different networks.

Safety- Users can rest assured, knowing that they are using the official service when choosing the swap providers featured in Tangem Express. There are no worries that you may fall victim to a phishing website or malicious false apps. 

Note that Tangem does charge a nominal fee of 0.35% on swaps, which isn’t too bad for the convenience of swapping within a wallet. There will also be the standard network fees, which go towards the network miners and validators and not charged by Tangem. This makes the wallet suitable for infrequent swaps on low-fee networks like Solana or Cardano, but you will likely want to avoid frequent trading with Ethereum or ERC20 assets as the network fees will add up. 

Being able to trade assets is great, but the real kicker is that users can not only buy crypto with their bank cards through the integrated Mercuryo service provider, but even sell crypto directly to their bank card thanks to the integrated MoonPay service! 

That’s right, with Tangem, you don’t need to go through the hassle of sending your funds off to a third-party exchange to sell them for fiat. Game changer!

From the main screen, all you need to do is select the asset you are ready to sell, hit “Actions” and then “Sell”. You will then be redirected to the MoonPay service where you can withdraw to your bank card.

Note that while Tangem does not charge fees for buying or selling crypto, the third-party service providers Mercuryo and MoonPay do charge fees, so be sure that you are aware of these fees.  You can find what assets are available to sell within the wallet, supported countries, fees and minimum sales amounts on the MoonPay Website. 

Setting Up the Tangem Wallet

Setting up the Tangem Wallet is as easy as it can be. The first thing you’ll need to do is install the Tangem App for iOS or Android. I recommend navigating to the Tangem Website to find the download link to the Play Store to avoid the risk of downloading malicious software from the app store. This tip goes for any financial or crypto apps, try and avoid searching in the app stores directly as there have been countless cases of malicious apps that mirror the originals. 

Once you open the app for the first time, you will be greeted with a screen that looks like this:

 If you already have your cards, select Scan Card, or you can order cards if you are a new customer. 

Then you will be instructed to tap a Tangem card to your mobile phone (NFC Needs to be Enabled on your mobile)

A short animation will play that shows you how to tap a card to the back of your phone. Should be fairly straightforward.

You'll know the card was read correctly once you see a big success checkmark on your phone. 

After the verification checkmark that shows the card and app can communicate, you will be given the option to “Create Wallet” to generate the private keys.

You will be asked to scan the same card again. This can take a few seconds, but after holding the card to the phone you should see another checkmark that says “Done”.

Now you will be given the option to backup your wallet by scanning the additional backup cards.

Hit “add a backup card” then repeat the process if you have a second backup card. Once you’ve scanned both backup cards you can hit “Finalize the Backup”.

Now you will create an access code to ensure nobody can access your app but you.

For the access code you can choose any letter, phrase or number you want, just be sure it will be something you can remember. You can also enable biometrics to access the app.

Once the access code is confirmed, you will set the primary card. Each card has a unique number to be able to identify it. Once you find the first card you scanned that matches the number on the screen, you will need to scan it once more. 

Then you will need to repeat this process with each backup card. Once you have successfully scanned your backup cards, you will see a success screen with confetti. Hooray 🥳

 You can now continue to the wallet and start transacting. Be sure to hide the backup cards in a secure location, preferably geographically separated so if your home suffers a fire or flood you will have an additional card stored someplace secure.

Tangem Wallet Price

The Tangem Wallet is one of the most cost-friendly secure storage solutions available. Users can order a 2-card set for $54 dollars or a 3-card set for $69. We recommend the 3-card pack for the additional backup.

Feel free to use our Tangem discount code for 10% off!

Supported Cryptocurrencies

The Tangem wallet supports 38 networks and over 6,000 cryptocurrencies, including the majors like Bitcoin, Ethereum, Ripple, Solana, Cardano, and more. 

Most altcoin enthusiasts will find Tangem suitable for their needs as it also supports many of the smaller and lesser-known coins. You can find a full list of supported assets by scrolling about halfway down the Tangem Homepage and typing in your asset of interest.

Note that at the time of writing, NFT management is not possible through the Tangem App, but we believe it is a feature that will be added in the near future.

Tangem Reviews

Tangem Wallet has impressively high reviews and ratings from both users and crypto professionals who rave about the product. 

On Google Play, the app has a boast-worthy 4.7 stars out of 5 while on the App Store, it has 4.5 stars out of 5.

Here at the Bureau, we would have to give the wallet 5 out of 5 for convenience, style, and ease of use and a 4 for security. But as we weigh security as being more important than user experience, we give it a total rating of 4.2. 

Conclusion: Is the Tangem Wallet the Right Choice for You?

The Tangem Wallet marks a departure from the conventional hardware wallet. Unlike the specialized and compact designs of traditional Ledger and Trezor wallets, resembling small USB thumb drives, the Tangem Wallet opts for simplicity, adopting a familiar card-shaped design. 

Tangem Wallet stands out for its user-friendly operation, making it notably more accessible for newcomers to the world of cryptocurrencies compared to traditional hardware wallets.

Boasting an intuitive card-shaped design, NFC capabilities, and extensive cryptocurrency support, it offers a convenient platform for buying, selling, and safeguarding digital assets. Notably, the Tangem Wallet prioritizes security, incorporating features such as the generation of a concealed private key and the use of supplementary backup cards to enhance protection.

While its efficacy in comparison to established wallets like Ledger or Trezor remains uncertain, it presents a unique approach to crypto security, potentially catering better to less tech-savvy users in the crypto space.

So, the big question: Are any members of team Coin Bureau trusting Tangem with the safeguarding of their assets?

You bet. I have been reviewing crypto wallets for over 4 years and prior to Coin Bureau, I worked as a quality control analyst and support engineer for another popular wallet company. I have taken apart, restored, reset, bashed around, worked with blockchain auditors and thoroughly tested over 30 cryptocurrency wallets. Over the years, one common theme has wrecked more crypto users than anything else, and that is seed phrase vulnerability risk.

I am a huge fan of wallets such as Tangem, Zengo, BC Vault and Cypherock that offer an alternative to traditional seed phrases while still maintaining trustlessness and self-custody and am a big believer in diversifying assets across multiple wallets, so Tangem certainly has a place in my lineup of wallets.

Disclaimer: This is a paid review, yet the opinions and viewpoints expressed by the writer are their own and were not influenced by the project team. The Coin Bureau assumes no responsibility for any actions taken by readers based on the information provided within this article.