By. Favour Right.
With the increase in a phishing attacks that has been happening to Bitcoin and cryptocurrency applications, users had gone into the fear that their crypto assets might be stolen or hacked and therefore, they have to keep an eye on the best wallet to keep safe their cryptocurrency assets. if you are one of them, stay calm because you will discover the best wallet to save your assets.
A hardware wallet stored your cryptocurrency in a piece of hardware device away from online and it keeps your keys stored away from the cloud, hackers can’t trick you into giving away your username and password.
Let’s get to know about this best wallet to safeguard your cryptocurrency assets.
WHAT IS CRYPTOCURRENCY HARDWARE AND HOW DOES IT WORK.
Cryptocurrency hardware wallets are key components of the blockchain ecosystem that store the user key ( critical piece of information) in a secure offline device.
The important aspect of a hardware wallet is that it provides full isolation between the private key to your cryptocurrency assets from your easy-to-hack computer or smartphone.
Using a hardware wallet is the best and the most secure method for storing your cryptocurrency assets because leaving your coins in a Hardware wallet is a guarantee that your private keys are offline and inaccessible to digital threats.
Hardware wallet works by generating unique private keys, which you need to keep in a safe place offline. the wallet itself is secured by a 4-to-8 digit PIN and the hardware wallet device clean it up after you have tried getting access to it several times but failed, this also helps protect your device from physical theft.
FEW THINGS TO LOOK FOR BEFORE CHOOSING A HARDWARE DEVICE.
Here are few things you must considered before choosing which hardware device you are going to use to safely store your cryptocurrency assets from cyber-attacks offline.
1) A RECOVERY PHASE
These is code that contain all the necessary information to recover your wallet after you may have lost the device or damaged it.
For you to earn access to your coins again after the device may have been stolen, lost, or damaged, a recovery phase will let you get to your assets by using a digital wallet or a new hardware wallet.
A pin is what you used to open your wallet when you have been out for a while. just as you need to login into your Facebook account before being online, you need to insert your PIN into your hardware wallet to access your coins and if you insert the wrong PIN for several attempts, it will not open again to safeguard your cryptocurrency assets from physical theft.
Among many features to look out for before choosing a hardware wallet, security level is seen to stand out .one of the core reason to move your coins from online to offline is because of security reasons.
By now, you will appreciate the importance of security, so lookout for a high-quality chip in your wallet, the idea one should be certified.
ANOTHER CRYPTOCURRENCY WALLET – DIGITAL WALLET.
Before we go into a type of cryptocurrency wallet, let’s first Know what is cryptocurrency wallet.
A cryptocurrency wallet is a device, physical medium, program, or service which stores the public and/or private keys for cryptocurrency transactions. in addition to this basic function of storing the keys, a cryptocurrency wallet more often offers the functionality of encrypting and/or signing information. signing can for example result in executing a smart contract, a cryptocurrency transaction, identification or legally signing a document, according to Wikipedia.
Now let look at what is a digital wallet since we have to know what a cryptocurrency wallet is.
A cryptocurrency Digital wallet is a wallet that stored your coins in the cloud and they are easily accessible and also easy to hack because you don’t own its keys.
Cryptocurrency Digital is the most straightforward way to keep crypto-assets, although keeping your coins in a digital wallet may be the least resistant, it’s also the least secure wallet because since you don’t have its keys technically, you don’t own your coins.
Here are the merits and demerits of storing your crypto assets on a digital wallet.
- 1) Fast transaction because it works on the cloud.
2) Easy to use because the cryptocurrency exchange has improved UI.
3) if you are not using control by exchange, examples of this wallet are trust wallet,token, token pocket,meta mask, etc, you will have control over your keys.
- 1) it is open to security risk and hacks attackers especially if it controls by an exchange.
2) Lack of direct control over your coins.
3)if your device gets lost or damaged, your may lose your assets if you did not save your login details or keys.
WHY YOU SHOULD USE CRYPTOCURRENCY HARDWARE WALLET.
A hardware wallet keeps your coins safe even when the computer or phone you are using is not secure.
cyber attacks, phishing attack, and malware can’t get into your assets because it gives you an extra layer of protection and it is offline not in the cloud.
2) it supports many assets.
A hardware wallet can work with multiple blockchain technologies simultaneously.
This permits you to own Bitcoin,ethereum, other altcoins, and more in one place and it can be backed up easily with a single recovery phase.
A hardware wallet often a small plug-in device is a portable key to access your crypto assets safely from anywhere.
TYPES OF HARDWARE WALLETS.
1) LEDGER NANO X.
Image Credit: Google
Ledger NANO X is a cryptocurrency hardware wallet that offers secure cold storage and also connects to the device via Bluetooth or USB using the ledger app.
One of the amazing things is that, while the device itself is a hardware wallet, the manufacturer’s team has created ledger live software that provides a user interface for all your assets.
Ledger NANO X isn’t arguably the best hardware wallet as it gives you the ability to add new wallets for different cryptocurrency and manage their assets.
- 1) ledger nano x has storage of between 3 to 20 apps.
2) it is easy to connect on Bluetooth.
3) open-source software with the added benefit of customer service.
- 1) Not enough storage.
2) Bluetooth integration may lead to cyber-attacks.
2) LEDGER NANO S
Image Credit: Google.
Unlike ledger nano x, ledger nano s offers an affordable entry point into cold hardware wallets.
Ledger nano s is accessible to ledger live and it also secures storage for a low price.
- 1) it opened and added the benefit of customer service experience.
2) secure storage.
- 1) Not enough storage for apps.
2) No wireless Bluetooth feature.
3) TREZOR MODEL
Image Credit : Google.
If you are looking for the best cryptocurrency hardware wallet for strong security features with a track record, then go for TREZOR MODEL.
- 1) web-based UI.
2) it supports many cryptocurrencies.
3) open community service.
- 1) high price point
2) Not first-timer friendly.
With what you have learned, it is best to conclude that a hardware wallet is best for storing crypto assets safely from cyber hackers and keeping them offline.
Digital wallets are easier for transportation but can’t be compared in terms of security to the likes of the Trezor model, ledger nano x, and ledger nano s