A hardware wallet is similar to a digital bank account. With volts you can send, receive and manage your cryptocurrencies. A hardware wallet is a physical wallet that comes in a variety of shapes and sizes. The Ledger Nano S, for example, is very similar to a USB.
The hardware wallet can also work with multiple blockchain systems simultaneously. This allows you to store and manage Bitcoin, Atrium and other coins on one device.
Hardware wallet is one of the safest ways to store your passwords. When using a hardware wallet, access to your assets is encrypted by the device. This makes it more secure, for example, than an online wallet.
When using an online wallet, access to your wallet is stored online. If a website is hacked, there is a risk of losing its assets. There is no risk when using a hardware wallet, as these wallets use offline storage.
The hardware wallet holds people’s private keys. Some of the advantages of a hardware wallet over other wallets are:
- Private keys are located in the protected environment of microcontrollers and cannot be accessed in encrypted texts.
- These wallets are safe from viruses and malware that easily steal from software wallets.
- Unlike a paper wallet in which private key security restricts the user from actively using the network, a hardware wallet will not restrict the user’s use despite the security.
- In most cases, the software is open source hardware cases that allow the user to check.