Hard wallets are a key component to security of your private keys and cryptocurrency. They are immune to computer viruses, unlike the software wallets that are prone to malware viruses. They give you further protection against cyber attacks and phishing sites.
Hard wallets can work with multiple blockchains simultaneously. This allows you to manage Ethereum, alt coins and bitcoins; and can be backed up to the hard wallet with a single recovery phrase just in case you would need it. They are often a small plug-in device in the form of USB.
To get access to your cryptocurrencies, you will have to use your private key. This key is your passport to the cryptocurrency´s ecosystem. Losing your private key means loss of access to your funds, and you will not have anywhere to turn to in a decentralized environment.
Hard wallets are often a small plug-in device, in the form of USB or with the help of a micro USB cable.
Disadvantages of Hard Wallets
Hard wallets are the most costly of all the wallets out there, they range from $50 to $170.
If you want to use the wallet, you would need a computer to connect to. This limited accessibility can be frustrating for the consumer.
And of course, keeping your private key safe is very important, if you lose the key, there is no “forgot password” and no bank to turn to, you can lose your funds forever.
Image: Bruno Germany
*Disclaimer: Fyggex, does not give any guidance, advice or recommendations to neither invest or not in any available cryptocurrency directly or indirectly via any trading platform, exchange or provider. Our sole purpose is to make you aware of the related real or potential risks and opportunities so that you can make your own research prior to any financial decisions you may want to take. Past performance and position are not a guarantee of risk-free future returns.