Hardware wallet – all the basic facts you need to know

Hardware wallet – all the basic facts you need to know

Are you considering investing a large sum into cryptocurrencies, but you are worried that it could be stolen? Would you like to keep your crypto funds in a safe place? Then the answer is simple – go for a hardware wallet. Here you will find all facts that you have to know about it, that will dispel all your doubts regarding security. Let’s hodl in peace!

What are hardware wallets?

A cryptocurrency wallet is the first step to make if you want to start using crypto. These wallets are equivalents to a bank account. Your wallet connects you to the Bitcoin network, the same way how your online bank account opens up for you the world of the regular monetary system. Thanks to a cryptocurrency wallet you can receive altcoins, store them and send them to others.

To put it straight – a hardware wallet is a cryptocurrency wallet that contains the user’s private keys. What does it mean? The private key is information that authorizes outgoing transactions on the blockchain network, so it simply allows you to spend your coins. A hardware wallet is a secure device, which isolates your critical information from hackers’ attacks.

So, to sum it up, the private keys give you access to your coins, and they need to be stored and secured, not the cryptocurrency itself. Hardware wallets can be divided into two kinds: hot wallets, which the main purpose behind them, is holding your everyday spending money, and cold wallets that are a great idea for long term savings. 

Is a hardware wallet safe?

What needs to be mentioned is that hardware wallets store your private keys offline, so they can’t be hacked. Keeping secret codes offline protects the hardware wallet because hackers have no way to reach your coins. Even if you connect your wallet to an infected computer, your coins are safe from cyber-criminals. However, hackers could steal the hardware wallet itself. But even then, you don’t have to be worried. Why? Your wallet can be protected with a PIN code. If you lose or damage the hardware wallet, there is also a thing for this. Just create a secret backup code, which will allow you to always retrieve your coins. 

Why are hardware wallets good?

  • It allows you to securely store altcoins
  • You can generate a secret backup code for protecting your coins
  • They are very intuitive, so it’s easy to manage even for less technical users
  • Also, they can be used with other hardware wallets to provide extra security

Why are hardware wallets bad?

  • You have to pay for them, so they are not free
  • It can be troublesome for new users

What are the top 5 hardware wallets?

Ledger

Ledger is based in Paris and can be credited as one of the most respected companies in the hardware wallet space. They use an operating system called BOLOS, which is integrated with a secure chip. They offer two wallets: Ledger Nano S and Ledger Nano X.

Trezor

Trezor was the first legitimate Bitcoin hardware wallet. Trezor wallets can be used with Android devices as well as with apps such as Trezor Wallet, Mycelium, and Multibit HD. Every single wallet provided by Trezor has a PIN code, which minimalizes the risk that hackers will discover your private keys. You can choose between Trezor One and Trezor T.

KeepKey

KeepKey’s headquarter is in the USA. KeepKey wallets are one of the most well-built wallets in the world.

Cold wallet – how much it cost?

Here you get an overview of presented wallets with their prices:

Name Coins supported Ease of usage Compatibility Weight Price
Ledger Nano S All major coins Beginner Windows, Mac and Linux Light 59 EUR
Ledger Nano X All major coins Intermediate Windows, Mac and Linux Light 119 EUR
Trezor One All major coins, except Ripple, EOS, Cardano, Tezos, Monero Beginner Windows, Mac and Linux Light 59 EUR
Trezor T All major coins Beginner Windows, Mac and Linux Light 180 EUR
KeepKey Limited coins Intermediate Windows, Mac and Linux Heavy 67 EUR

It doesn’t matter if you are up to investing or saving – a hardware wallet will keep your coins safe.

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