I've come across quite a few posts where i found people not making use of hardware wallets and though that i should try and shed some light on the issue and identify the benefits of using one.Simply put: a hardware wallet is a physical device that is specifically built to store private keys of cryptocurrencies.Unlike traditional crypto wallets which can be used to hacked into or attacked with a virus, a hardware wallet can be used to go online whenever you want to make a transaction, and then be taken offline to facilitate portability and maximum security.Some of the most trusted cryptocurrency hardware wallets are – Ledger and TREZOR.Using a cryptocurrency hardware wallet comes with several benefits that traditional wallets do not have, let’s explore some of them.Private Keys remain unexposedThe only place you will be required to put in your private keys is your hardware device. Since your private key does not reach your computer, it is not exposed to being hacked or copied.Pin Encryption increases securityAn encrypted pin protects the hardware wallet. This pin is generated by you and is known only to you. If anybody tries to forcefully activate the device by trying in different pins, the device will self-destruct after the third wrong pin entry. The public and private keys on the device will be deleted to ensure the safety of your funds.Hosting multiple Cryptocurrencies on the same walletCryptocurrencies are not physical things that actually require space, therefore, there is no limit to how many cryptocurrencies your wallet can hold. Some Hardware wallets can hold multiple cryptocurrencies like Bitcoin, Ethereum, and Ripple simultaneously.Immune to Computer VirusesSince most viruses are designed to attack system software, they are ineffective on your hardware wallet. Hardware wallets cannot be attacked like software wallets and therefore, they are your safest option when it comes to cryptocurrency wallets.Verification on the Hardware DeviceYou have to verify your transaction through your hardware wallet and not online on the computer. Therefore, nobody can make transactions without having access to your device. As long as you keep your device safe, you can rest assured that there will be no tampering with your funds.
Submitted November 12, 2020 at 06:45PM
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