A Detailed Guide For Crypto Users To Choose Hardware Wallets

A hardware wallet is the best choice for crypto users concerned about the security of their digital assets. It is because they remain offline; ruling out any possibility of private keys getting online exposure. However, those who need frequent access to their assets choose an online or hot wallet.

But for users who access their cryptos once in a while, the hardware counterpart is a better option. However, for new users, choosing a hardware wallet could be a tricky thing. That’s why they need to learn about its characters and limitations first.

Hardware Wallet: In a Nutshell

To begin with, hardware wallets don’t store the cryptos. Instead, they secure the private keys that give access to those assets. So, those who are new to crypto must understand what these keys are. Private and public keys function quite like the physical keys that unlock doors.

In this scenario though, they work with an encryption mechanism. Members of a blockchain network use these keys to encrypt and decrypt transactions and messages. For laymen, they are nothing but an alphanumeric code that doesn’t make sense.

Alternatives To Hardware Wallets

For many reasons, new users might not be up for a hardware wallet in the beginning. All those digital asset owners explore these additional methods of storing

Regular Storage Device: These are regular memory sticks or flash drives that people use for storing data. Due to easy availability and convenient usage, they are the first option. However, the users must ensure that the devices aren’t virus-infected and they remain offline mostly.

Paper Wallet– It’s the cheapest method for private key storage. Users just need to note down their key on a piece of paper and keep it safe. Now it’s quite easy to lose a piece of paper. Therefore, users need to laminate it and keep it in isolation.

Stainless Steel– Those who are not convinced by a piece of paper or memory stick can try this method. They can engrave the private key on stainless steel. It would be less likely to go missing and invulnerable to fire and physical damage.

Advantages of Using a Hardware Wallet

Before getting one, the users must what they are getting out of this device. It includes:

Full Control- Hardware wallets grant full control of private keys to their owners. They don’t feel the risk of losing it to some notorious hacker.

Uncompromising Security- By staying online, hardware wallets ensure total security of the assets. Users can set passwords on them so that no one can access them physically.

Backup Options- Hardware wallets come with an option for backup as well. Using a particular seed-phrase feature, users can regenerate the private key even after losing them.

Here’s How One Can Choose Hardware Wallets

Below are some points that users could check before opting for one.

Security– Make certain that the wallet has features like backup, 2-factor authentication, multi-sig, etc.

Ease of Use– New users may get overwhelmed with some feature-laden wallets. So ensure that the wallet isn’t very complex to use. Portability could also be one factor to consider.

Compatibility– Be certain about the wallet’s compatibility with the cryptos desired to be stored. Also, make sure they offer seamless connectivity with major dApps and DEXs.

Brand Value– Check the testimonials and reviews of customers and research the brand’s history in this space.

At some point, every crypto user thinks of using a hardware wallet. Once they have an assorted and rich portfolio, the need comes to the fore. Thus, they must know how to choose one without any doubts in mind.

Amanda Shinoy is one of the few women in the space invested knee-deep in crypto. An advocate for increasing the presence of women in crypto, she is known for her accurate technical analysis and price prediction of cryptocurrencies. Readers are often waiting for her opinion about the next rally. She is a finance expert with an MBA in finance. Quitting a corporate job at a leading financial institution, she now engages herself full-time into financial education for the general public.