Cryptocurrencies are stored using a mix of hot and cold storage options. The software-driven wallets run on a PC or accessed online with a cryptocurrency exchange. The crypto software wallets are also known as hot wallets.
On the other hand, a crypto hardware wallet is a portable hardcore device immune to the threat of cyber-attacks and malware injection. It falls under the category of cold storage. Amid widespread hacking attempts on crypto assets, a crypto hardware wallet is essential. The wallet helps you increase the security of your digital assets.
If we perform a comparison of hot and cold storage options, then it becomes obvious that hot wallets are less secured. Breaking the internet security, and stealing confidential data from a PC is not a difficult task for hackers. Hot crypto wallets installed on a malware-infected PC becomes even more vulnerable. On the other hand, cold storage or a crypto hardware wallet is free from all the aforementioned vulnerabilities.
Not your keys, not your coins
Usually, exchanges that offer online crypto wallets do not provide access to private keys. Therefore, the ownership of your crypto assets remains at stake. Also, entrusting your coins to a third-party exchange involves two major issues, including security threats and lack of control.
There have been numerous incidents when hackers managed to break into crypto exchanges, including one of the largest crypto exchanges called Binance. All such cyber-attacks resulted in a cumulative loss of crypto assets worth 1.85 Billion U.S. Dollars.
- Lack of Control
Storing your cryptos in an online wallet can limit your profit-making potential. For example, the exchange may be down for maintenance when you have an immediate investment opportunity, and you can do nothing but wait. Most importantly, if your crypto exchange prohibits access to your wallet for any reason, you instantly lose ownership of your coins.
Power and Responsibility
With crypto hardware wallets that provide direct access to the wallet keys, investors can now have more control over their crypto assets. Without requiring a validation from third-party exchanges, you can transact, transfer, and convert your cryptos anytime. Above all, the cost and transaction time is minimal. It is however pertinent to mention here that power always comes with a great sense of responsibility. Access to your wallet keys also means exercising due care to keep your keys well secured.
Listed below are some main advantages of using a hardware crypto wallet.
Advantages of Hardware Crypto Wallets
- Build the wallet ecosystem to access your coins, you simply enter a passcode into your offline physical device. Therefore, your private keys remain unexposed to the threat of being copied.
- Unlike hot storage wallets, hardware crypto wallets are not vulnerable to viruses and hacking attempts.
- Most hardware wallets have built-in advanced features for secure logins, such as pin authorization or biometric identification. In case someone gets hold of your hardware wallet and attempts to unveil the security code, the device automatically gets locked after three wrong attempts.
TJ Wallet – The Most Recommended Crypto Hardware Wallet for 2021
With a unique design and stylish look, the TJ wallet is one of the best hardware crypto wallets of 2021. By featuring maximum security and adaptability, the wallet supports more than 40 coins and over 2000 tokens, including Bitcoin (BTC), Ethereum (ETH), and Filecoin (FIL), etc. The multi-signature authentication makes it extremely secure for storing, sending, and receiving digital assets.
Traders can use the hardware crypto wallet to create a backup of their digital assets. In case the crypto hardware device is stolen, damaged, or lost, the wallet’s easy recovery option enables investors to gain access to their crypto assets.
TJ hardware crypto wallet is water and heat resistant, offering long-lasting reliability. Being an open-source wallet, it supports the operational validation of the entire device. TJ hardware crypto wallet also allows investors to access the DApp ecosystem that consists of more than 3000 decentralized apps. The crypto hardware wallet caters to the needs of both newbies and professional crypto investors. The TJ Wallet can be used to store both, small and large, amounts of coins.