August 31, 2017

What Is A Hardware Wallet?

A Hardware Wallet is a special type of Bitcoin Wallet which stores the user’s private keys in a secure hardware device.

They have major advantages over standard software or hot wallets:

  • Private keys are often stored in a protected area of a micro controller, and cannot be transferred out of the device in plain text
  • Immune to computer viruses that steal from software wallets
  • Can be used securely and interactively, as opposed to a paper wallet which must be imported to software at some point
  • Much of the time, the software is open source, allowing a user to validate the entire operation of the device