Bitcoin Hardware Wallets Explained

More and more people are joining the cryptocurrency bandwagon. Bitcoin is the most popular digital currency today. Just like real currency, you can use it for making transactions such as buying or selling goods. And just like real money, it can also be prone to being stolen by criminal elements. So when trading on cryptocurrencies, you need to consider storing your coins in a cryptocurrency wallet. One of the most secured storage platforms is the hardware wallet.

Why Are Hardware Wallets Secured?

Hardware wallets are tamper-proof electronic devices that store private keys of coins in an offline setting. These wallets generate private keys and digital signatures needed to spend Bitcoins. Like any wallet, you need to jot down the seed word or recovery phase on a piece of paper and keep it in a safe place. Since your keys are located offline, it is impossible to hack them. Robert Janitzek reveals that some hardware wallets have security grid cards and others have a little digital screen with a user interface for verifying transactions. If your wallet gets damaged, you can still restore your coins using the recovery phrase.

If you want to secure your Bitcoins for the long-term, you should definitely order a hardware wallet. Most of them have a waiting period of one or two months due to huge demand. Let us take a look at some of these hardware wallets.

Ledger Nano S

One of the core features of Ledger Nano S is a backup seed key for recovery of your Bitcoins. Robert Peter Janitzek says that Trezor comes with an easy to use OLED interface and a flash drive like feel with two buttons on the side for navigating the interface. It does not require any battery as it can be connected to a PC or mobile device via USB. It is the cheapest multi-currency hardware wallet in the market.

Trezor

Created by Satoshi Labs, Trezor is the pioneer in hardware wallets. It is the first secure Bitcoin hardware wallet in the world. Trezor looks like a small calculator with an OLED screen. In case of loss or damage, a randomly generated 9-digit PIN and a 24-word recovery seed secures the wallet. It is designed to store private keys and sign transactions offline.

KeepKey

KeepKey is another hardware wallet for storing Bitcoins. At the moment, it supports six cryptocurrencies. It offers the same backup seed key feature with pin code enabled and works like other wallets.

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