Hardware

What are the benefits of cryptocurrency hardware wallet?

They are the most secure

The level of security is the best when it comes to securing your coins as they cannot be accessed online. You can disconnect the device from the internet to secure your coins and connect it to your laptop or computer when you want to manage your coins.

You can back up your addresses if the device is lost

There is a recovery sheet where you need to put the generated seed during the set up process. The seed is a recovery code which has up to 24 characters. You will use the seed to back up your private keys to a new wallet in the case you lose it, or it is stolen.

Allows physical validation of transactions

The best cryptocurrency hardware wallet devices such as Ledger Nano S have a physical way through which you can validate or verify a transaction. This prevents you from making the wrong transactions as you will need to validate by pressing buttons on the side in order to validate.

Easy to set up

Even an individual who is not tech savvy can easily set up the wallet based on the coins they want to manage. All you need is the keys to those coins, set up a PIN and the recovery phrase, just in case you lose the device or it becomes non-responsive.

Immune from viruses

Anything that runs on the internet can be attacked by malware or malicious programs like viruses. Since cryptocurrency hardware wallet is disconnected from the internet, you do not have to worry about such malicious programs attacking your device. If in any case, viruses attack your wallet device, you will be able to recover your keys and back them up to another wallet.

What are the drawbacks of cryptocurrency hard wallet?

Cryptocurrency wallet hardware devices are physical, which means that you will have to buy them in order to set up your wallet. This is the only major drawback of hardware wallets.