hardware walletIt might sound ironic that we first move to the digital version of currencies (read cryptocurrency) and then create a hardware wallet for the digital currency. But then that is a trend that has recently made an impact and so many are already trying it out. So should you really buy one of those fancy wallets out there in the market?

If you are someone who trades and invests a good deal of money in bitcoins, using robots like Bitcoin Code for example, then you might definitely need ways to secure your coins, your private keys in particular. The topic about cryptocurrency wallet has resurfaced because of the announcement of Archos Safe-T mini. Archos has so far made smartphones, tablets, electric vehicles, connected objects and others. And now the hardware wallet for cryptocurrencies which would be released in June has made tech enthusiasts excited.

What is a hardware wallet for cryptocurrency?

When it comes to storing data people create backups of the digital version because of the possible corruption due to technical glitches and system malfunctions. For a similar reason if you wish to keep your private keys saved securely on a hardware device which would also be resilient enough to withstand errors due to viruses, then a cryptocurrency hardware wallet would do this for you. It is, more like, the hardware variant of the digital cryptocurrency wallets you must already be using.

The private key would be stored in the wallet and you would be able to view information about transactions, which in this case, would occur within the wallet. Though there are limitations on the currencies supported and the devices and operating systems, you would be able to securely carry out your transactions without the fear of hackers tapping into your coin stash.

Benefits of using hardware wallets

  • The characteristic of a hardware wallet for the cryptocurrencies is the immunity of the wallet to computer viruses. So as long as you can safely store your physical wallet your keys remain safe.
  • All your transactions would be authenticated only if the physical wallet is present. Your wallet would also come with a pin to secure it.
  • You would be able to carry out transactions on multiple cryptocurrencies with hardware wallets. And the computer or device to which you connect your wallet would not be able to access the information stored in the wallet.

Cryptocurrency wallets are expensive. But they are handy for the cryptocurrency investors to add to the security. There are also paper wallets and other offline and online wallets in case you would like to try the other options.

hardware wallet

That being said, all of these wallets, whether they are digital or physical have their own vulnerabilities along with the benefits. So it takes user discretion to use them securely. And to start with, do your research and pick out the trusted wallets that have been used and found reliable by crypto traders around the world. And if you are able to find a hardware wallet with an open source software, it would be the best option. So you would be able to clearly track the operation at any point.