What is cryptocurrency hardware wallet?

Hardware wallet is a unique device, where is store your private key to your cryptocurrency wallets. Definitely, it is a safer way, then online cryptocurrency wallet. Hardware wallet can you protect from all risks of stealing your private key against to online wallet, where is a big risk of steal.

hardware wallet, ledger nano s, ledger banner, ledger

Basically, it looks like USB flash disk but it is the high end cryptographic device designed for one purpose – protect your crypto assets. There are 2 types of wallets, what you can you actually purchase (most popular).

Ledger nano S

Trezor

How can hardware wallets procect your wallets?

  • Nobody can see the screen in your wallet when it is connected to the PC.
  • The device has two parts – connected device and disconnected device. Connected part performs all actions with your public keys, however, the disconnect part hold your private key and it cannot be transferred out of the device.
  • Wallets are immune to all computer viruses (technically it is not possible to connect to the part of device, where is stored private key
  • Software of hardware wallets are open source, so community can validate all operations.

However, we must stay aware, because everything can be hacked. Actually are hardware wallets best option, how to securely store cryptocurrencies.