A hardware wallet is a wallet that stores bitcoin and over cryptocurrencies “offline”. The wallets private keys are stored on a device along with the coins, the device is similar to a USB stick. The biggest security feature of these devices is that they are not connected to the computer (all the time) so people are not able to hack into a device. They also don’t have an email and password that needs to be entered on the PC, you use a security pin that’s type in via the device. So not only does a hacker need to have the device they need the security pin also.
- Manual conformation of all transaction
- Only connected to the PC when you want to send a payment
- Can receive
- Private pin to access the device
- Doesn’t allow software to be installed to the device (a virus can’t be uploaded to the device)
- Works on all modern versions Mac IOS & Windows.
What if I lose the device?
If you were ever to lose the device, you will be able to restore all the coins easily. When setting up the device you are given a 24-word recovery phrase. This recovery phrase you will write down on a piece of paper and keep it hidden in a safe or lock box etc. however, DON’T LOSE THIS! If you lose this recovery phrase you will not be able to restore the coins if the device is ever lost or stolen.
We recommend buying a hardware wallet to keep bitcoin secure over a long period of time. If you are going to be daily trading all your bitcoin then a hardware wallet wouldn’t work for you. Your coins would most likely would be in the wallet on whatever online exchange you are using.
By Connor Sanders at ClickDo Ltd.