The world of crypto hardware wallets is still in its infancy. It can be difficult to understand exactly what you need to protect your wealth with so many unknown variables.
Table of Contents
- Why do I need a crypto hardware wallet anyways?
- What is a “private key”?
- Crypto hardware wallets vs. software wallets
- Custodial crypto wallets vs. non-custodial crypto wallets
- How does crypto hardware wallet security work?
- What makes SecuX’s crypto hardware wallet the best?
Cold storage wallets, or physical crypto wallets, are one way to help ensure the security of your cryptocurrency holdings.
But what makes a hardware wallet secure, and why should you use one over software or custodial wallets?
In this article, we’ll take a look at what makes hardware wallets secure and explain why SecuX makes the best crypto hardware wallets on the market.
Why do I need a crypto hardware wallet anyways?
Let’s start by defining what a hardware wallet is.
A hardware wallet is a physical device that stores your cryptocurrency’s private keys. Unlike software wallets, which are digital and reside on your computer or mobile device, hardware wallets are physical devices that you keep in your possession.
Hardware wallets are ‘cold storage’ wallets, meaning that they are not connected to the internet and therefore can’t be hacked remotely, undoubtedly making them more secure than any other form of cryptocurrency wallet.
If you own a lot of cryptocurrencies, a hardware wallet provides you with an easy and secure way to store your crypto wealth.
What is a “private key”?
As mentioned above, hardware wallets don’t actually hold your cryptocurrency, which always remains on the blockchain.
Instead, hardware wallets store your private key, a unique code that allows you to access and spend your cryptocurrency.
It’s essential to keep your private key safe and secure, as anyone who has access to it can spend your crypto holdings. This is why hardware wallets are so popular – they provide a convenient and safe way to store your private key.
Private keys can also be used to generate addresses, which are used to receive funds from another individual; you’ll need to know your wallet’s generated address if you want to accept cryptocurrency.
Crypto hardware wallets vs. software wallets
Since its inception, the debate of hardware wallets vs software wallets has been a hot topic in the cryptocurrency world.
As we mentioned earlier, software wallets are digital wallets that reside on your computer or mobile device. They are convenient because you can access them from anywhere globally as long as you have an internet connection. However, they are also less secure than hardware wallets because they are prone to hacking, and their contents can be stolen remotely.
Overall, software wallets are a good choice for those who want convenience and accessibility. In contrast, hardware wallets are a better choice for those who want security and to avoid the risk of losing or damaging their device.
Custodial crypto wallets vs. non-custodial crypto wallets
Another important distinction to make is the difference between custodial and non-custodial wallets.
A non-custodial wallet means that you, and only you, hold the private keys to your cryptocurrencies. In contrast, a custodial wallet means that you don’t own the private keys to your cryptocurrencies. Instead, the custodian holds them on your behalf.
While using a custodial wallet makes it easier for beginners to store their cryptocurrency, you have less control over your crypto holdings and are exposed to counterparty risk, meaning that you rely on someone else to protect your money.
The general consensus here is that a non-custodial wallet is always safer than a custodial wallet.
How does crypto hardware wallet security work?
Now that we’ve covered the basics of hardware wallets lets look at how they work and why they are so secure.
Offline storage environment
We already know hardware wallets work by creating a ‘cold storage’ environment for your private keys. This means that even if your computer is hacked, your private keys will remain secure because they are not stored on it.
The implication here is that even advanced wireless technologies won’t be able to reach the crypto wallet application that manages your private keys!
Multi-factor authentication (MFA)
Another way to prevent unauthorized access to your crypto holdings is through multi-factor authentication (MFA).
Devices that use MFA require two different, simultaneous authentication methods to access your crypto hardware wallet. Given the added layer of security, hacking your cold storage device becomes that much more difficult from unintended intruders.
Of course, the ultimate security measure to prevent unauthorized access to your devices is through the configuration of your passcode or pin code.
If you lose your hardware wallet or someone steals it from you, they won’t be able to access your private keys without knowing the passcode first.
Microcontrollers
Microcontrollers are tiny computer chips used in the construction of hardware wallets and another essential component to their security.
They are unique because they have their own operating systems, which allows them to execute code in a truly secure environment for your cryptocurrencies.
Due to this security measure, microcontrollers are almost impossible to hack when it comes to non-physical attacks.
What makes Secux’s crypto hardware wallet the best?
SecuX is a leading manufacturer of crypto hardware wallets and is considered to make the best crypto hardware wallets on the market. Their wallets are made of vault-grade security materials and are designed to be as secure as possible.
They also offer a wide variety of features, including, but not limited to:
- Multi-Factor Authentication
- Military-Grade Infineon SLE Solid Flash CC EAL 5+Secure Element Chip
- Cross-Platform Operation
- Supports for over 1000 cryptocurrencies
- Bluetooth Function
- Large Touchscreen
SecuX currently offers three crypto hardware wallet models: The SecuX V20, W20, and W10.
These wallets provide their own unique features and benefits, but they all have superior durability, security, and design. If you’re looking for a crypto hardware wallet that is pleasant to use yet highly secure, then a SecuX wallet may be the perfect fit for you.
Our conclusion on cold storage
Cryptocurrency wallets are essential to secure your digital assets, and if you’re holding a significant amount of money, a hardware wallet is a must. Compared to software wallets, hardware wallets offer stronger protection against vulnerabilities and risks. SecuX, a leading provider of hardware wallets, offers different models to meet your specific security and storage needs, including cold wallet options. Choosing the right hardware wallet can be overwhelming, but with SecuX, you can rest assured that your assets are in safe hands. Check out our blog section to learn more about crypto security and don’t hesitate to contact us for any questions or concerns about our crypto wallet products or the industry in general.
Sources:
https://cryptosec.info/wallets/
https://medium.com/radartech/hardware-wallets-explained-da8bd93ce801
https://medium.com/@ericlarch/ledger-101-part-2-why-hardware-wallets-are-secure-9e9982c144ab
