Just as a physical wallet holds traditional coins and bills, a hardware wallet is the physical device that keeps cryptocurrency safe. Its main function is to store the private keys that allow owners to gain access to their cryptocurrencies. Anyone new to cryptocurrency should learn about hardware wallets so they can protect their investment and safeguard their information.

Unfamiliar with crypto wallets? Learn about five different wallet types.

What is a Hardware Wallet?

Hardware wallets are small electronic devices that attach to the owner’s computer. They are like miniature computers that store information about cryptocurrencies that the owner possesses. It features a security system that is resistant to thieves and hackers and yet still allows the owner to participate in exchanges and transactions easily.

Hardware wallets can be purchased online for modest costs. It’s never a good idea to purchase hardware wallets from second-hand sources, just reputable dealers. When hardware wallets are resold, there’s no guarantee that the devices haven’t been compromised.

Cryptocurrency experts agree that anyone dealing with a large amount of cryptocurrency should invest in a hardware wallet to keep their information and their currency fully secured.

Using a Hardware Wallet

When cryptocurrency funds are moved to the hardware wallet from the owner’s computer, it generates a private key within the device. The private key is a code that matches up with a public key to enable owners to identify and verify themselves and others so that transactions can take place. This digital signature process prevents forgery and easily authenticates legitimate transactions. Hardware wallets are much more secure than other options including software wallets and exchanges.

There are several different kinds of hardware wallets on the market and the three most popular are Trezor, Ledger Nano S, and KeepKey.  While there’s no wrong choice between them, it’s a good idea for consumers to review the pros and cons of each hardware wallet so they can choose the one that is best for them.




Ledger Nano S






Any Hardware Wallet is Worth It

Cryptocurrency investors have a lot of incentive to secure their cryptocurrencies. As the values rise, so will the efforts for hackers to try to access wallets. A hardware wallet is the best way to prevent this from happening. Whether people choose  Trezor, Ledger Nano S, or KeepKey, they’ll have peace of mind knowing that they are in control of their coins and don’t have to worry about losing their investment.

*This article contains affiliate links.  If you make a purchase after clicking a link, OCC will receive a small commission.