This might sound like having a bank account, but it's actually quite different. In other words, you can think of your bitcoin wallet as your personal bitcoin mailing address. In order to get a handle on what cold storage actually is, it's important to review the fundamentals of the "bitcoin wallet." In the same way that you can use a traditional wallet to store your paper currency, you can use a bitcoin wallet to store your bitcoin in digital form. Understanding the Basics of the Bitcoin Wallet Hackers would have to steal the hardware wallet itself, but even then, it can be protected with a PIN code.ĭon’t worry about your hardware wallet getting stolen, lost or damaged either so long as you create a secret backup code, you can always retrieve your coins. Generating and storing private keys offline using a hardware wallet ensures that hackers have no way to reach your coins. Your all-important private keys are maintained in a secure offline environment on the hardware wallet, fully protected even should the device be plugged into a malware-infected computer.Īs bitcoins and cryptocurrencies are digital, cyber-criminals could, potentially, target your computer’s “software wallet” and steal them by accessing your private key. Hardware wallets keep private keys separate from vulnerable, internet-connected devices. Hardware wallets are a good choice if you’re serious about security, convenience, and reliable Bitcoin & crypto storage. The two most popular and best Bitcoin and cryptocurrency hardware wallets are: The core innovation is that the hardware wallet must be connected to your computer, phone, or tablet before coins may be spent. The Ledger Nano S is one example of a hardware wallet.Ī hardware wallet is a physical electronic device, built for the sole purpose of securing crypto coins.
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