Hardware Wallet (2024)

FAQs

Is a hardware wallet a good idea? ›

Hardware wallets provide a secure way to store and manage your private keys, keeping them offline and out of reach of hackers and scammers. By generating and storing your private keys on a hardware device, you can be sure that your digital assets are safe and secure while you sleep at night.

Hardware wallets keep the user's private keys (needed for accessing their coins) safe for later access to the blockchain. Most hardware wallets can even work with multiple blockchains simultaneously. This allows a user to manage many different types of coins from many different exchanges on a single device.

Ledger devices are industry-leading hardware wallets due to their security model. They offer a secure element chip, the same computer chip used for bank cards and passports coupled with its direct connection to the Trusted Display. These pieces guarantee that no hacker can access your crypto online or physically.

You may not be fully aware of the function of a hardware wallet. They are one of the most secure methods of storing keys to your crypto. Remember, wallets don't store the crypto. They store the keys (passwords, private keys) that are required for the app to deal with your crypto holdings.

Single Point of Failure: While the private keys are stored securely offline, the hardware device itself becomes a single point of failure. If the device is damaged, lost, or stolen, you'll need your recovery phrase to regain access to your funds.

While hardware wallets provide a high level of security, they are not infallible. Like any electronic device, hardware wallets can malfunction, become damaged, or even be lost or stolen.

There are two options: 1) hack the wallet before it reaches the owner, and 2) hack it without the owner noticing. In cybersecurity terms, the former is known as a “supply chain attack”, while the latter is called an “evil maid attack”. Both of them are flawed.

The Winklevoss twins—the first Bitcoin billionaires and alleged co-founders of Facebook—famously protect their private keys by printing them out and storing snippets of these in various safety deposit boxes across the United States.

Acquire or reset a replacement hardware wallet

If your hardware wallet is lost or stolen, you need to purchase a replacement if you don't already have one. It's generally best to purchase hardware directly from the manufacturer. See the full list of hardware wallets that Unchained supports.

Ledger: Most popular

Cost: $79 for Nano S Plus, $149 for Nano X. Cryptocurrencies supported: More than 5,500. Ledger's flash drive-shaped hardware wallet is the most mainstream, available for purchase from Best Buy, Walmart and Amazon, as well as the company website.

What is the most trustworthy crypto wallet? ›

A hardware wallet can last for many years, depending on how well it is maintained. The lifespan of the device is not limited by the technology itself but rather by external factors such as physical damage, technological advancements, and compatibility with new software or cryptocurrencies.

Hackers can gain access to cryptocurrency owners' cryptocurrency wallets, exchange accounts, or the exchanges themselves. Ransomware and scams are also used to steal cryptocurrency.

Hardware wallets — often called cold wallets — are physical devices that are specifically designed to generate and store private keys securely. They're safer than software wallets because they never connect to the internet.

In the realm of security, hardware wallets stand as impregnable fortresses for your digital wealth. Unlike their paper counterparts, hardware wallets store private keys in a secure, isolated environment, shielding them from the prying eyes of potential threats.

However, even though crypto wallet hardware stores keys separately from exchanges, because they still interact with Web3, these devices may have some vulnerabilities. As such, hard wallets may still be exposed to hackers.

Never Buy Pre-Owned Hardware Wallets

What buyers don't know is that these devices are often pre-seeded, meaning the scammer has the wallet's private keys and is hoping the buyer will simply start using the pre-seeded wallet.