Should you use a hardware wallet for cryptocurrency?

Hackers around the world work 24/7 trying to seize cryptocurrency. Hardware wallets provide an added layer of security to protect your cryptocurrency. If you hold cryptocurrency, you should seriously consider using one. A hardware wallet is a small device that serves the same purpose as that bulky leather wallet in your back pocket.

What are the different types of crypto wallets?

There are two main types of crypto wallets: software-based hot wallets and physical cold wallets. Hardware wallets, a type of cold wallet, provide one of the most secure ways to keep cryptocurrencies. They work by storing your private keys in an external, physical device (usually a USB or Bluetooth device).

What is a hardware wallet?

Typically, a hardware wallet is cumbersome and includes relatively complex operations and settings that are not beginner-friendly. A hardware wallet user has to back up their information regularly in case of loss, theft, or destruction.

How do crypto wallets work?

Contrary to popular belief, crypto wallets do not physically hold cryptocurrencies like the wallet in someone’s pocket. Instead, they store the public and private keys required to buy cryptocurrencies and provide digital signatures that authorise each transaction.