What is a Hardware Wallet? Should You Store Bitcoins offline?

best hardware wallet

A hardware wallet is a physical device that has the capability to store the private keys of your Bitcoin wallet address offline. So far, these physical devices that can cold store (storing coins offline without internet) your coins including altcoins are safest ways to hold cryptocurrencies for longer period. Bitcoin hardware wallet comes with a secure element chip that can store your coins safely even when the device is not connected to the internet which directly means your coins cannot be hacked remotely.

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Before we jump in to discuss about a hardware in detail, I would like to let you know a single hardware wallet for example Ledger Nano X, can store more than 100 different coins at a time. You can store Bitcoin, Ethereum, XRP, Dogecoin, and the like in a single crypto hardware wallet.

At the time of sending and receiving cryptocurrencies, these physical device don’t expose your wallet private keys to the internet. Only public information is shared through USB connection to an online device, such as a computer or mobile phone.

This thing makes a hardware wallet immune from online remote hacking.

Perhaps, this is why Hardware wallets are considered to be the most secure way to store Bitcoin and other cryptocurrencies, because they provide a high level of security against remote hacking and phishing.

Another good reason to have a hardware wallet is it is the most convenient way to store large amounts of Bitcoin and carry them wherever you go. Not only this send and receive the coins on the go by connecting them to your mobile smartphone.

Hardware Wallet

Best Safe Hardware Wallets

One of the popular hardware wallets include Trezor, Ledger, and BC Vault. These devices range in price from $69 to more than $1000.

Here are the official buying links of recommended hardware wallets (You can buy authentic devices directly from the manufacturers’ websites by clicking on the links):

Why should you buy a hardware wallet?

First a hardware wallet can store your coins offline or if I would specifically say ‘cold store’ your coins. By doing so you can rest assured that your coins are safe. Exchanges can run away with your coins at any point of time or they can be hacked. But by storing your coins in a bitcoin hardware wallet, you can take control of your private keys in your hands.

A cryptocurrency hardware wallet comes with a variety of features, such as a display screen, physical buttons to approve the transactions and for inputting a pin code, and built-in military grade security chip and more.

The Only Drawback

When you first set up your hardware wallet, you will be given a 24 words recovery seed that can be used to restore your wallet if the device is lost or stolen.

In a hardware wallet this is the only drawback because it is immensely important to write down this recovery phrase and store it in a safe place. It is the only way to regain access to your funds if the device is lost.

Also, if someone else found this recovery seed than he or she can transfer your funds without the need of your hardware wallet.

Read: 10 Interesting facts about Bitcoin

How do you send and receive coins in a crypto hardware wallet?

Once your hardware wallet is set up, you can use it to store, send, and receive compatible cryptocurrencies by connecting it to a computer or mobile device. To send Bitcoin, you will need to enter your pin code, confirm the transaction details, and then physically press a button on the device to sign the transaction.

The most safest things when it comes to sending coins from a hardware wallet is physical button. No matter which company’s device you buy, you will be required to press the physical buttons to authorize the send request. Without pressing the physical button, no transaction can be done.

This thing makes a hardware wallet safe from remote attacks.

To receive Bitcoin, you will need to provide the sender with your public address, which is a string of letters and numbers that can be found on the device’s display screen.

To receive the coins, you don’t need to do anything other than sharing you wallet address with the sender. Once coins are sent, you will receive them depending upon the blockchain network usage.

Advantages of using a hardware wallet

One of the key advantages of using a hardware wallet is that it gives you to control over your private keys. This is important because if you store your Bitcoin on an exchange or online wallet, you are in control of your funds. It is the cryptocurrency exchange that has your private keys.

In crypto world, it is often said, if you don’t have your private keys then you don’t own any coins.

With a hardware wallet, you are the only one who has access to the private keys, and therefore, you are the real owner.

Another advantage of hardware wallets is that they are immune to malware, phishing, and other online threats. These devices are so secure that even if you would use them a malware affected computer then still your coins will remain intact.

This makes them an ideal choice for storing large amounts of Bitcoin and altcoins, as they provide a high level of security against theft and hacking.

To sum up, a Bitcoin hardware wallet is a physical device that stores the private keys of your Bitcoin address in an offline isolated space to provide a high level of security against hacking, phishing, and other online threats.

As of this writing, hardware wallets are considered the most secure way to store cryptocurrencies. They come with a variety of features and they are not so expensive.

Just remember, hardware wallets give you control over your private keys whereas exchanges provide you only public addresses and take care of your private keys on your behalf.

Finally, I would like to suggest you that if you can survive for 3 months on your cryptocurrency investment then you need a hardware wallet. Don’t think too much use the above provided best hardware wallets links to buy one right now.

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