Why You Need a Hardware Wallet
Hardware wallets are touted as a must-have for cryptocurrency investors. But are they useful for people who want to use crypto as a fully-featured currency?
Though hardware wallets are the most secure way to store your private keys, they do come with some compromises. Mainly, ease-of-use: compared to software wallets, hardware wallets are safer, but they make your crypto harder to use. With usability an increasingly important factor in the future of crypto as a currency, it’s fair to ask yourself if you need a hardware wallet.
Absolutely you do! Whether you’re speculating or spending, a hardware wallet is a must-have for any crypto owner.
If you’re on the fence about what type of wallet you should have, here are some things to consider:
Hardware Wallet Vs. Software Wallet
Many of you reading this probably already know what hardware wallets and software wallets are. But here’s a quick comparison:
A hardware wallet is a physical device that stores private keys offline, away from a computer, an exchange, and most importantly, the internet. Your private keys are generally further secured by a passphrase.
A software wallet is a non-physical piece of software that works the same way as a hardware wallet, often with the same security protocols like passphrases, but with some key differences. Mainly, crypto is easier accessed from a software wallet, but software wallets are generally always online, leaving them susceptible to malicious attacks by digital scammers.
Why You Should Have Both
Whether you should use a hardware or software wallet probably comes down to what matters more to you: speedy access or topline security?
But here’s the thing: the bit of inconvenience that comes with accessing your assets from a hardware wallet is worth the upgrade in security you get for your cryptocurrency.
And the truth is, hardware wallets don’t conflict with crypto usability as much as people think. Wallets like the Ledger Nano series and the Cobo Vault, for example, have accompanying apps that assist with asset transfer without compromising the security of your physical wallet.
And there’s no rule that says you can’t have both. In fact, you should have both! A hardware wallet, as your “cold wallet”, is a great way to store crypto that’s not for everyday use. That’s what your software wallet, a “hot wallet”, is for.
It doesn’t necessarily make sense to use a hardware wallet to purchase a cup of coffee, or for your next Amazon order (which you can do with Moon!). You can think of your hardware wallet as your crypto savings account, and your software wallet as your crypto checking account. Now, doesn’t it make sense to grab a hardware wallet?
What Should You Look for in Your Hardware Wallet?
Now you know you need a hardware wallet. But what features should your hardware wallet have?
The variance between hardware wallets usually comes down to four factors: supported coins, interface, aesthetics, and security build.
First, does your wallet support the currencies you have? Trezor hardware wallets, for example, support over 1,000 coins.
Second, what physical features does your wallet have? Some, like the Cobo Vault, come with fully-realized touchscreens, while Trezor’s devices feature a simple LCD.
Third, does the hardware wallet fit your aesthetic needs? It’s not just about how sleek it looks, but does the design mesh with how you plan to keep, carry, and use your device? Ledger and Trezor have slim, easily transportable devices, while the Keepkey hardware wallet and the Cobo Vault are big and less portable, but obviously sturdier.
And finally, how secure is your hardware wallet? Most devices require passphrases and PIN’s, have backup and recovery options, and come equipped with secure chips. But there are also physical aspects to consider. Ledger’s connect via USB, and the Nano X has Bluetooth connectivity options. On the other hand, the Cobo Vault is completely air-gapped: no WiFi, no Bluetooth, and no USB connection.
Ready to Buy?
Hardware wallets might have seemed like a niche purchase once, like something only a small percent of crypto users owned. But that’s just not the case anymore. Whether you’re holding only a few hundred dollars worth of crypto or your whole life savings ends in “-coin”, add a hardware wallet to your collection. ASAP!
Win a Cobo Vault Hardware Wallet
From now through August, shop with Moon and you’ll be automatically entered for a chance to win your very own Cobo Vault military-grade hardware wallet!
Every purchase you make through Moon enters you for another chance to win. There is no limit to the number of entries. No purchase necessary. Learn more here.
