Mid Level Reading
12 Aug, 2023

Hardware Wallet

A hardware wallet is a cryptocurrency wallet that typically resembles a USB stick, offering secure storage for digital assets.

Understanding Hardware Wallets

A hardware wallet is a compact device, often resembling a USB stick, designed explicitly for storing cryptocurrencies securely.

It creates an isolated environment to store users’ public and private keys, essential for tracking and accessing their digital assets on specific blockchains.

It’s important to note that hardware wallets do not store the actual coins but provide access.

Hardware wallets are also known as cold wallets or cold storage, and they differ from hot wallets, which are connected to the internet.

Safeguarding Cryptocurrency Assets

The main advantages of using a hardware wallet for cryptocurrency storage are native private key storage and enhanced security against malicious attacks.

Private keys are vital data that verify the ownership of stored assets and enable users to send and transfer them securely.

When using a hardware wallet, users need to set a secure PIN, protect a seed phrase, and ensure the device’s physical security.

It’s also recommended not to keep all funds in a single hardware wallet.

Security with User-defined PINs

A user-defined PIN serves as a barrier against unauthorized access to the wallet.

If the PIN is forgotten, hardware wallets allow for PIN resets using a seed phrase—a list of words generated during the initial setup that must be memorized or securely stored by the user.

In addition to secure storage, hardware wallets enable users to sign outgoing transactions by confirming them on the device.

Despite their robust security measures, hardware wallets are designed to be user-friendly, with accompanying apps that simplify fund transfers for non-technical users.

For more information, see our curated list of the best hardware wallets

  • 1,000+
IOS/Android App
  • Yes
Purchase Cost
  • $79

More details

Ledger Nano S Plus is a fortress-like protection for your digital wealth, sporting an affordable price point. This crypto wallet supports many cryptocurrencies and blockchain networks, making them easily managed via the reputable Ledger Live app. Despite its significant advantages, some users have noted the lack of storage capacity.

  • Support for up to 5,500 cryptocurrencies.

  • Private keys are always offline.

  • Integration with other hot wallets.

  • Support for staking.

  • NFT support.

  • High fees for Ledger Live crypto purchases.

  • Limited app space.

  • Small display.

  • 40+
IOS/Android App
  • Both
Purchase Cost
  • $99

More details

Arculus is an innovative cryptocurrency hardware wallet that safeguards users' crypto private keys. It stands out with its sleek metal card design, using Near-Field Communication (NFC) to store crypto private keys securely. With robust layers of protection, it ensures no unauthorized access to the stored keys.

  • Digital passports and banking cards.

  • In-app crypto purchases.

  • Three-factor authentication and biometrics.

  • Free crypto deposits and withdrawals.

  • WalletConnect for DeFi and NFT support.

  • Limited crypto support.

  • Only USD and EUR are supported.

  • High fees on crypto purchases.

  • 1000+
IOS/Android App
  • Both
Purchase Cost
  • $413

More details

Ngrave Wallet provides utmost security and a user-friendly experience. Its offline functionality, EAL7-certified OS, multi-crypto support, intuitive interface, and robust security make it a top choice for secure crypto asset management.

  • Advanced security features.

  • Interface with a 4-inch touchscreen.

  • Over 1000 cryptocurrency support.

  • Trusted certification (EAL7).

  • Limited support for decentralized finance (DeFi).

  • Higher price range compared to other wallets.

  • Lack of Bluetooth and NFC connectivity.

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