Hardware Wallet

HARDWARE WALLET

Secure Yourself in the Digital World

You do not need to own a hardware wallet in order to buy, store, or send bitcoin. But hardware wallets can significantly improve security by reducing the risk of your bitcoin being stolen.
This article will provide you with a basic technical understanding of how hardware wallets protect your coins. We also list some of the trade-offs between hardware and software wallets to help you decide whether owning a hardware wallet is the right choice for you.

What is a Hardware Wallet?

Unlike software wallets, which are vulnerable to security holes and hackers, offline hardware wallets were developed so that you no longer have to trust software on your computer to hold your private keys. Hardware wallets store your private keys on a physical device with specialized firmware that prevents your private keys from being accessed

Your computer communicates with the hardware wallet, sending bitcoin transactions to the device to be signed and then returned to your computer as signed transactions. In this way, your private keys never exist on your computer and are immune to many types of viruses

Hardware Wallet Pros

The following list provides a summary of the pros of hardware wallets in comparison to software wallets:

  • Security: To date, hardware wallets are the most secure way to store your private keys because they are not susceptible to viruses.
  • Self Reliance: Owning a hardware wallet allows you to be more self-reliant when it comes to protecting your bitcoin.
  • Physical Size: Because a hardware wallet is smaller than a computer, storing your private keys on a hardware wallet makes it easier to transport your bitcoin when needed.

Hardware Wallet Cons

On the other hand here are some of the cons to hardware wallets compared to software wallets:

  • User Experience: The user experience of hardware wallets is typically worse than software wallets. It may take some time to figure out how your hardware wallet works, and you will always need the extra step of retrieving and connecting your hardware wallet.
  • Upfront Cost: Hardware wallets are more expensive than software wallets, and this upfront cost may not seem worthwhile if you are planning to buy and sell your bitcoin quickly.
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Do You Have Any Questions?

There are viruses that target bitcoin private keys by recognizing the keys and sending them to hackers. These viruses have been around for many years and they are getting more sophisticated through time. By design, hardware Bitcoin wallets prevent your private keys from ever leaving the device, making them a great defense against this type of attack.

Using a hardware wallet can also provide peace of mind to the user. It can be stressful trying to manage private keys, software wallets, and other bitcoin-related programs, all while trying to ensure your computer stays very secure. With a hardware wallet, you can be more assured that your bitcoin won’t unintentionally move. It can be hard to trust your ability to secure an intangible, internet-connected software wallet, but securing a physical offline hardware wallet provides another level of confidence in your method of crypto storage.

Even if you don’t own a lot of bitcoin, it can be a good idea to store it on a hardware wallet. It might seem too expensive to buy a $150 hardware wallet to protect $500 worth of bitcoin, but you need to factor in the possibility that the value of the bitcoin can increase very quickly
>In the past, $500 worth of bitcoin has turned into $5000 in a matter of months. Check out why we recommend holding bitcoin for the long term here. Another added benefit of using a Bitcoin wallet is that it teaches the user to be self-reliant when it comes to crypto storage. Bitcoin was invented as a peer-to-peer currency that didn’t require third-party middlemen like governments, banks or other institutions. When you use a hardware wallet you are effectively becoming your own bank. It’s not necessarily for everyone but it can be comforting to know you have complete control over your crypto assets
Interestingly, all hope is not lost if you somehow misplace your hardware wallet or it gets accidentally destroyed.
All hardware wallets come with seed recovery phrases (sometimes referred to as “paper wallets”). The recovery seed will let you recover your private keys even if your physical device is MIA. That should provide users with plenty of peace of mind.
You should know, however, that it’s extremely important you keep your recovery phrase in a safe location. If someone manages to steal your recovery phrase they might be able to steal all your BTC. Many crypto users prefer to keep their cold wallets and recovery phrases in separate locations in case one of them is accidentally destroyed or otherwise compromised
You can just leave your crypto on an exchange and that’s absolutely what a large number of crypto users do. It’s especially common for crypto traders who need their crypto online so they can swap it quickly between different digital assets.
The issue is that when you leave your crypto on an exchange you don’t have access to your private keys, which means the exchange could technically get hacked or go bankrupt and you wouldn’t have a lot of recourse.
Of course there are some people who simply don’t have technical ability to keep their crypto on a physical hardware device and prefer to have exchanges take custody. If you do decide to take that approach it’s extremely important you use a reputable exchange such as Coinbase, Kraken or Binance.
So hardware wallets are better in every way to software wallets, correct?
It’s not so simple. The best crypto software wallets or apps make it incredibly easy to transfer crypto and offer features such as staking to earn passive income.
Therefore it’s not a bad idea to keep a small amount of crypto on a wallet or exchange if you plan on transferring it frequently.
You can even combine a hardware wallet with excellent crypto software like Exodus to benefit from the heightened security while still getting the slick software provided by Exodus.

Conclusion: Hardware Wallets Offer Highest Level of Security

While you are not required to store your bitcoin on a hardware wallet, we highly recommend it. Even for small amounts, hardware wallets are a good investment because they protect your private keys and give you peace of mind that is not possible when using software wallets.
You certainly do not want to be caught in a situation where the price of bitcoin increases rapidly and you are left with a large amount of bitcoin stored insecurely

Online wallets are online services that enable you to access your crypto assets from any browser that’s connected to the internet. When you leave your crypto assets on a cryptocurrency exchange platform, you’re actually using the platform’s online wallet.
The biggest advantage of online wallets is that they are easily accessible from any computer or other device with an internet connection.
Being online is also their biggest disadvantage asthey can become targets for hackers. Moreover, in most of the cases, you do not keep control of your private keys: they are controlled by the wallet provider

Software wallets are applications that manage cryptocurrencies. They can be installed on your computer or smartphone
You remain in control of your private keys. They are not shared with or controlled by a third-party.
Unfortunately, since a software wallet is installed on your PC or smartphone, it is still connected to the internet which exposes your private keys to hackers.
Vulnerabilities of modern PCs and smartphones are well known, and if you keep your private keys there it’s just a matter of time before you’ll get hacked and lose everything

A paper wallet is an offline mechanism for storing crypto assets. As suggested by its name, the process simply involves printing the private keys and its corresponding addresses on a paper sheet.
This is a simple way to store your cryptocurrencies keys offline. It requires paying great attention and care to this paper.
If your paper wallet gets lost or destroyed, you will permanently lose the access to your crypto assets. Also, processing a transaction with a paper wallet can be tedious and unsafe: you will need to manually enter your keys in a transaction tool, typically by using your computer’s internet browser which could expose the keys to a cyber attack

A Hardware wallet is an offline storage option for private keys. This is a physical device that allows you to store the private keys in a secure offline storage. It generally also enables you to verify the transaction details on the device screen.
With a hardware wallet, even if a hacker succeeds in getting control of your computer, he will not be able to steal your private keys and access your crypto assets. Your private key is kept offline and limits the risk of hacking.
As a result, hardware wallets are widely considered to offer the most secure wallet option.
This is why hardware wallets are booming in popularity and becoming the new standard bearer for crypto security.

A CLOSER LOOK TO HARDWARE WALLET SECURITY


Diving into the physical and software security components reveals some promising options for hardware wallet users.
Hardware wallets offer a much more thorough level of protection, as these physical devices enable investors to take their private keys into their own hands and secure them into a harder-to-hack product.
First, hardware devices use encrypted chips for resisting sophisticated attacks and hosting numerous applications.
For example, in Ledger, we use Secure Element (SE) chips, cryptographically protected chips used in the likes of passports and SIM cards: your private keys stay safe and isolated inside the secure element. Additionally, our physical devices are independently certified by ANSSI, the French cybersecurity agency.
However, even hardware wallets are prone to attacks including physical attacks to abstract keys, fault attacks to disrupt a wallet’s chip causing faulty behavior or hacker access, and side channel attacks, which involves a hacker “listening” to the chip’s electric or electromagnetic signature to gain access to the device.
While the emergence of hardware wallets are providing critical new security solutions, most vendors are still vulnerable to various attacks.
That’s where Ledger comes in. We are pioneering hardware wallet technology that provides unprecedented levels of security for crypto asset through a secure element — a chip designed specifically to resist highly skilled attackers and a custom OS designed specifically to protect crypto assets.
In other words, Ledger offers you the best security for your crypto assets. Furthermore, Ledger hardware wallet combined with the Ledger Live app enable you to manage your crypto easily and securely. Buy, sell, exchange, stake or lend crypto without compromising the security of your assets. Dealing with crypto has never been so easy and secure!

Know more about SafePal (SFP)

What Is SafePal (SFP)?
SafePal is a cryptocurrency wallet launched in 2018 that helps users to protect and grow their digital assets. SafePal provides hardware and software wallets, all paired and managed through the SafePal App and was the first hardware wallet invested in and backed by Binance.
SafePal wallet supports numerous popular crypto-assets, in addition to popular tokens on the Ethereum, Binance Smart Chain (BSC) and TRON blockchains. Users can store, manage, swap, trade and grow their portfolio without compromising asset security, according to SafePal.
Since its launch in 2018, SafePal has grown exponentially and has over 1 million users in 87+ countries globally. More information can be found in the SafePal Media kit.
SafePal products and services Include:
SafePal S1 Hardware Wallet: SafePal S1 Hardware Wallet is a 100% offline and decentralized hardware wallet that has supported 20 blockchains and 10,000+ cryptocurrencies. SafePal S1 is embedded with advanced security technology, including EAL5+ secure element, self-destruct mechanism, device authentication mechanism, etc.
SafePal Cypher: SafePal Cypher is a metallic seed phrase board that protects your mnemonic phrase against water, fire, salt and corrosion.
SafePal Software Wallet: SafePal Software Wallet is a secure decentralized wallet that enables users to import, recover and manage wallets and crypto-assets on mobile devices.
SafePal App: SafePal App is an application for users to manage the SafePal Hardware Wallet and SafePal Software Wallet.
Who Are the Founders of SafePal?
SafePal was founded in 2018 by a team of crypto enthusiasts led by Veronica Wong. The project was developed to provide a reasonably affordable hardware wallet for crypto users. Subsequently, SafePal was incubated by Binance in December 2018, receiving funds from the exchange to foster its development. In May 2019, SafePal launched its first project, the hardware wallet SafePal S1.
What Makes SafePal Unique?
SafePal aims to offer affordable hardware wallets as well as secure software wallets for users. The wallet platform supports multiple cryptocurrencies, including Biitcoin, Ethereum and BNB. Its native token SFP is the utility token of the wallet and is used to offer discounts for users, incentivize SafePal users and more.
SFP is a BEP-20 token that can be transferred to any wallet that supports the Binance Smart Chain network. It can also be exchanged with other assets and can serve as a means of payment for services. SFP also serves as the SafePal governance token, and holders can create proposals and vote on new features such as adding new blockchains on SafePal products.