What Is A Hardware Wallet And How To Use Them
Cryptocurrency Hardware wallets are a very safe method to store your cryptocurrency. There are many reasons why they stand out as a safe place to store your cryptocurrency, and the main reason being is that it has more security layers and fewer options for a hacker to breach or exploit them. That does not mean they are ultimately secure, but they do provide really challenging security layers.
You can think of Cryptocurrency Hardware Wallets as a stripped down mini-computer that has the least amount of services needed to only provide the functionality that the wallet comes with, which is the following:
- A place to store your cryptocurrency
- It only connects to the internet when needed
- Very minimal design and a PIN security layer
The main downside of Cryptocurrency Hardware Wallets is that they are not the best if you will be moving your cryptocurrency around a lot. It is a Cold Wallet, so it is not intended to be used for an active style since it can be inconvenient.
Most Hardware wallets carry only specific Cryptocurrencies so please refer to the manufacturer site or product details to understand exactly which cryptocurrencies they support.
Are They Secure?
Security Pin gives it a basic protection layer that decrypts the device when it receives the correct pin. Initially, everything will be encrypted until the security requirements are met and that is when the device gets unlocked.
Cold Wallet is a term used to refer to a place to store a large amount of cryptocurrency safely and by referring to it as cold, that means it will not be accessed many times, only when necessary.
Network Connectivity is limited on the Cryptocurrency Hardware Wallets, it only uses the internet to perform the transactions. Other than that, it stays offline until needed, which reduces the opening for a malicious attack.
Having a bare minimum design and code while also running multiple security layers makes the Cryptocurrency Hardware Wallets a valuable choice for stepping up your security and storing your cryptocurrency.
What Happens If You Lose It Or Forget Your Pin
Now one thing that is worst than losing your money to hackers will be losing your money because of you forgetting your account if it is a virtual wallet or losing your cryptocurrency hardware wallet.
There is always ways to recover your wallet whether it is a virtual or a hardware wallet. You can recover most of the wallets using the private key and public address, but the most common recovery method is through the use of the Mnemonic Seed Phrases.
Mnemonic Seed Phrases is a long passphrase that is usually up to 12 – 24 words that need to be saved somewhere that is safe and accessible.
The term Mnemonic means that the phrase is set in a way that it is easily remembered and memorized. So you can try to memorize the passphrase to the heart or write it down somewhere safe and secure, because if anyone gets a hold of it, then they can most likely retrieve your entire wallet.
Top 3 Crypto Hardware Wallets
1. Ledger Nano XRating: 4.5/5
The Ledger Nano X is the latest Cryptocurrency hardware wallet created by Ledger. It has a unique design and is a very secure piece of hardware. It is more on the Costy side but it is one of the top Hardware wallets.Buy Here
2. Trezor Model TRating: 3.5/5
Trezor Model T is more than just a wallet. It can store your passwords, private keys, and ensures high-grade encryption. We recommend Trezor for more versatility. It has a rigid design and a touch screen that grants ease of use. Buy Here
3. KeepKeyRating: 3/5
This option is the cheap one for the minimum and main functionality of just having the cryptocurrency wallet protected by a pin. The KeepKey wallet is a great option for starting off and it also has an integrated Shapeshift exchange to convert cryptocurrencies seamlessly. Buy Here