A hardware wallet provides offline storage of crypto. They allow digital assets to be stored in a device that is not connected to the internet. Hardware wallets are ideal to accept deposits for medium to long-term storage. While they do allow for sending or spending of crypto - it is a cumbersome task not ideal for convenience or speed. Hardware wallets are not ideal for portability nor trading.
The advantage of a hardware wallet when compared to a paper wallet is that they have greater security and recovery options from threats inherent to paper wallets such as theft, fire, and negligence.
When considering a hardware device we recommend adhering to our best tips:
List of Dos:
- Do use a trusted & well-reviewed device (cryptocompare.com)
- Do purchase from a trusted & well-reviewed merchant
- Do protect with strong passwords & PINS
- Do protect with 2FA
- Do backup!!
- Do store securely and privately (Backup in a different protected location)
- Do itemize holdings in Will & Testament
(store password in a secure and known place)
List of Do-Not:
- Do NOT purchase from an unverified or untrusted source
- Do NOT purchase used/open/re-sealed devices
- Do NOT share or lend the device
- Do NOT share back up recovery phrase
- Do NOT plug into computers you do not own & control directly
Click to learn about other Wallet Types.