Investing in cryptocurrencies is becoming more and more popular among investors all over the world. At the same time, it is known that investing in cryptocurrencies is a risky process. The crypto market is extremely volatile, and often is a victim of hacks, scams and other fraudulent activities.
Reports on crypto-related crimes in 2022 show that approximately $2 billion worth of cryptocurrency was stolen.
That is why safely storing and managing your digital assets is so important. Although it may seem like a big challenge, it is up to traders and investors to educate themselves on the best options.
One of the best options for crypto storage is a hardware wallet. It is a type of cold storage, and is a physical device, created for the safe and secure storage of digital currencies. With a hardware wallet, your assets are saved offline, providing extra layers of security. This is the safest and most recommended way to store your cryptocurrencies, especially if you hold large amounts and want them to be safe for the long term.
Why choose a crypto hardware wallet?
As we already mentioned, hardware wallets are cold wallets in the form of a physical device, where you can store your cryptocurrencies offline.
Actually, crypto wallets can be classified in two main categories - cold and hot. While we already explained what a cold wallet is, the hot wallet is quite the opposite. Hot wallets are software-based wallets, connected to the internet, which makes them much more vulnerable.
Cold wallets, on the other hand, are small USB-like devices, where you can store your cryptocurrencies or NFTs securely. It is important to say that hardware wallets don’t actually store cryptocurrency. They store the private key, allowing access to the stored digital assets.
Hardware wallet benefits
Private key storage - The user’s private key is stored in a physical device offline
Security - The device is not connected to the internet and is safe from hacking attacks.
Suitability - It is suitable for owners who want to securely store their digital assets.
How to use a crypto hardware wallet?
As there are different types of crypto hardware wallets, the exact steps and procedures may vary. We suggest you follow the manufacturer instructions and follow all security practices to learn how to use the chosen hardware wallet.
Of course, there are some common steps which can help you understand how to use crypto hardware wallets.
Buying the wallet
Make sure you are purchasing the hardware wallet from a trusted and reliable manufacturer or an authorized reseller, and make sure it is sealed and tamper-free. Visit their official website and download and install the wallet software.
Connecting the hardware wallet
With the provided USB cable or wireless connection, such as Bluetooth or NFC, you should connect the wallet to your device and make an initialization, following the instructions.
Adding funds
Within the wallet software, you can locate the option to receive or deposit your digital assets. Copy the public address and add the desired amount from an exchange or another crypto wallet.
Verifying the transaction
To confirm the transaction, you need to provide additional authorization by entering a PIN. After that, the hardware wallet will sign the transaction with the private keys stored in it.
It is extremely important that you securely disconnect the hardware wallet from your device, once the transaction is completed.
Final worlds
As it already became clear, hardware wallets are much more secure than hot wallets. Of course, you must keep in mind that no security measures can guarantee complete safety, hardware wallets provide additional layers of security for storing your digital assets.
Don’t forget that cryptocurrency investments can be risky, and that is why we always suggest you do proper research and never invest more than you are willing to lose.
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