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Nobody likes the thought of losing their hard-earned money to hackers. It's a scary thought. But don't worry,
You can protect your cryptos in one of three ways:
- You can keep your coins in a software wallet like MyEtherWallet (or any other third-party service).
- You can store your private key on paper and store it somewhere safe, such as a fireproof safe or an antique bank vault.
- You can use a hardware wallet like TREZOR or KeepKey to protect your private key in an offline location.
Why You Should Start Using A Hardware Wallet Today
It's no secret that cryptocurrency is incredibly volatile. A single coin's value can fluctuate by up to 6,000 percent in a single day.
With that kind of volatility comes the risk of losing your hard-earned money if you're not careful. That's why it's important to protect your money with the right kind of wallet.
A hardware wallet (also referred to as a "cold wallet") is a physical device that stores your cryptocurrency. You would usually use it in one place, and carry on using your regular banking/payment system in another. The best part about a hardware wallet is that it doesn't connect online at all. This means no risk of Bitcoin theft via malicious software or by phishing sites that get their information from hacked websites.
If you aren't already using one, now is the time to get started! Here are three reasons why:
Image source: Freepik
1. It protects your funds from hackers.
A cryptocurrency wallet is simply a software program that protects your funds from hackers and malware. A hardware wallet is a secure device that stores your private keys offline. This means that even if the computer you're using to access your wallet is compromised, the hacker will not be able to get access to your money.
The main benefit of using a hardware wallet is that it can be used anywhere in the world with no internet connection required. Some wallets have an offline mode, but these are still vulnerable to malware attacks because the user needs to open their wallet on another device and manually input their private key.
Hardware wallets are also more secure than paper wallets, which can be stolen or lost easily. They can also store multiple cryptocurrencies and multiple currencies at once, allowing you to combine them into one portfolio without having to move them back and forth .
2. It prevents your coins from being stolen by an external attacker
The main benefit of using a hardware wallet is that no one can steal your coins from it unless they get physical access to the device itself.
There are many different types of hardware wallets available on the market today, but some of them are better than others, depending on what features you're looking for in a wallet. I've gone over some of the most popular ones here:
TREZOR One—Probably the most popular hardware wallet out there right now, TREZOR One offers both secure PIN entry and 2-factor authentication (2FA).
It also has an easy-to-use interface that lets you set up individual PINs and logins for each account you want to use the device with. It supports Bitcoin, Ethereum, Litecoin, and Bitcoin Cash (among others), which
Image Source:Freepik
3. It ensures that you have complete control over your private keys at all times.
You should assume that your crypto is at risk if you store it in an exchange, online wallet, or any other wallet that requires your private keys to be stored on a server.
Using a third-party service carries little accountability, but using an open source hardware wallet like the Trezor enables security researchers to find, report, and fix any bugs or exploits in the code, ensuring that security features are always current. Your keys remain in your hands and no one else's when you use a hardware wallet. Your keys and your money.
The right way to Buy a Hardware Wallet?
Today's market is filled with a wide variety of hardware wallets. Some of them are more advanced than others, but they all serve the same purpose: keeping your money safe. However, if you want to make sure that none of them will be able to steal your private keys, then you will need to use one with a secure element.
You can purchase a hardware wallet in a variety of locations, including popular online retailers like Amazon. But to avoid middlemen tampering with the product after it has been created, we advise purchasing directly from the manufacturer.
We recommend the ColdCard hardware wallet made by Coinkite if you intend to purchase a hardware wallet that will only be used to store bitcoin. The Ledger Nano X, on the other hand, is a good choice if you anticipate storing multiple cryptocurrencies.
When it comes to crypto wallets, there are many reliable manufacturers, including Trezor, KeepKey, Ellipal, and the aforementioned Ledger.
Although we focus on Bitcoin (BTC) in this article, it's important to note that hardware wallets are compatible with all of the major altcoins, including Ethereum and Litecoin.
Image Source:Freepik
What Happens If My Hardware Wallet Gets Lost or Broken?
Interestingly, even if you accidentally break or lose your hardware wallet, there is still hope.
All hardware wallets include seed recovery phrases (sometimes referred to as "paper wallets"). Even if your physical device goes missing, the recovery seed will still enable you to recover your private keys.
Users should have a lot of peace of mind as a result. But you should be aware that keeping your recovery phrase in a secure place is crucial. Someone might be able to take all of your BTC if they manage to steal your recovery phrase.
Many cryptocurrency users prefer to keep their recovery phrases and cold wallets in different places in case one of them is accidentally destroyed or otherwise compromised.
Conclusion
Although it's not necessary, we strongly advise using a hardware wallet to store your bitcoin. Hardware wallets are a wise investment, even for small sums, as they safeguard your private keys and provide you with a level of security that software wallets cannot provide. You definitely don't want to find yourself in a situation where the price of bitcoin skyrockets and you are left with a sizable amount of unsecurely stored bitcoin.
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