What Are Hardware Wallets?

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What Are Hardware Wallets?

A hardware wallet is a type of cryptocurrency wallet where you can store your private keys in a secure physical device. The cryptocurrencies stored in the wallet are kept offline, meaning that they can't be hacked.


How Do Hardware Wallets Work?


Hardware wallets can support more than one cryptocurrency. They allow users to set 4 to 8 digits pins, which serve as passwords deterring unauthorized access. In most cases, wallet providers avail another layer of identity verification security framework – 2FA authentication – that further assures users that it is almost impossible to hack these devices. The only security threat that is associated with hardware wallets is physical theft. Even at that, stealing a hardware wallet is of no use, since the owner can simply recover the contents of the wallet in a straightforward process.


Another important fact about hardware wallets is that you can create a decoy wallet, which is a safety measure useful in situations where you are physically forced to give up information about your hardware wallet. Here, all you need to do is enter your recovering phrase and any password, apart from your passphrase, to open a decoy wallet. You can transfer a small amount of crypto to this wallet to throw attackers off the scent of your plot. Once you have all these security mechanisms set up, you can start receiving and sending cryptocurrency.

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