Good storage is vital when you invest in crypto. Hacking and other malicious activities can prove detrimental to your holdings. Therefore, it is good to have a strategy to protect your crypto.
What is a crypto hardware wallet?
A crypto hardware wallet is a physical device to store private keys and other crypto-related data securely offline. Hardware wallets keep your crypto holdings secure by keeping them off your desktop or phone. Your crypto is safe even if your device has been hacked or infected with malware.
As hardware wallets are not connected to the internet, they are considered one of the safest methods to store crypto. Popular hardware wallets include the Ledger Nano X and the Trezor Model T.
How do crypto hardware wallets work?
Crypto hardware wallets are essentially computers that perform a few simple functions. These wallets usually have one or two buttons, with some even having a small screen. Hardware wallets cannot connect to the internet, so hackers cannot access their content. Transactions are signed using private keys when users send, receive, or trade crypto assets to or from any wallet. These transactions are signed within the device using a crypto bridge. A crypto bridge is a software that enables a hardware wallet to connect to a blockchain.
Read more: What is Crypto Wallet
The crypto bridge transfers unsigned transactions to a computer when users connect their crypto hardware wallets to their computers. The hardware wallet signs the transactions and sends them back to the crypto bridge using private keys. Next, the bridge broadcasts these transactions as complete to the rest of the blockchain network. The private keys are never stored outside of the crypto hardware wallet.
Benefits of a hardware wallet
Security
Crypto hardware wallets protect your assets even if your computer does not. These wallets protect users against malware and cyberattacks.
Many assets in one place
Crypto hardware wallets can connect to and work with multiple blockchains simultaneously. This feature enables users to manage Bitcoin, Ethereum, and other altcoins on the same device. All these crypto assets can be backed up with a single recovery phrase.
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Convenience
A crypto hardware wallet is usually a small device that enables you to access your crypto assets securely from anywhere. Users can log in to multiple dApps without creating new accounts using a hardware wallet. Users can also use hardware wallets to log in to regular apps like Twitter or Google.
Wallet-to-wallet trading
Some platforms allow users to trade directly from their hardware wallet. This feature is one of the safest methods to trade crypto assets, as users have custody of their assets at all times. Rather than depositing crypto assets on an exchange, assets can be traded directly from your hardware wallet. This feature also saves time as you can skip depositing crypto and fees.
Best types of hardware wallets
Ledger Nano X is a crypto hardware wallet that enables users to manage and buy multiple types of crypto. This hardware wallet supports over 5000 crypto coins such as Bitcoin, Ethereum, Dogecoin, and more.
Ledger Nano X cold wallet is available all over the world. This wallet comes with eight hours of battery life. This hardware wallet has a huge knowledge base and features like live chat and email support.
Trezor Model T is another crypto hardware wallet that enables users to access third-party crypto exchanges from the Trezor internet interface. This hardware wallet is one of the best; it provides a touchscreen feature that helps new crypto traders use it. It supports over 1800 crypto tokens. It is also compatible with macOS, Android, Linux, and Windows 10+.
How do I choose a crypto hardware wallet?
There are many factors you should consider when choosing a hardware wallet. The crypto hardware wallet should be compatible with the device you want to use it with. Users should choose a crypto hardware wallet that is easy to set up and use. The hardware wallet should have all the necessary security features, like two-factor authentication and offline transaction signing. There are many hardware wallets at different price ranges, so select one that suits you best. Above all, you should do your due diligence and research before choosing a crypto hardware wallet.
Final Thoughts
Crypto hardware wallets are designed for users who deal with large amounts of crypto and for those who want to keep their crypto assets secure and undisturbed. These wallets are one of the safest methods to store your crypto holdings.
Top crypto practices suggest users never store large amounts of crypto in an online or hot wallet due to their exposure to online attacks. Crypto hardware wallets may be expensive, but they can be a worthwhile investment in the long run.
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Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Each investor must do his/her own research or seek independent advice if necessary before initiating any transactions in crypto products and NFTs. The views, thoughts, and opinions expressed in the article belong solely to the author, and not to ZebPay or the author’s employer or other groups or individuals. ZebPay shall not be held liable for any acts or omissions, or losses incurred by the investors. ZebPay has not received any compensation in cash or kind for the above article and the article is provided “as is”, with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information.
