About Crypto Hardware Wallet
A hardware wallet is a cryptocurrency wallet which stores the user’s private keys (critical piece of information used to authorise outgoing transactions on the blockchain network) in a secure hardware device. The main principle behind hardware wallets is to provide full isolation between the private keys and your easy-to-hack computer or smartphone.. Hardware wallets offers the best level of protection: your key remains protected in a certified secure chip.
They have major advantages over standard software wallets:
- private keys are often stored in a protected area of a microcontroller, and cannot be transferred out of the device in plaintext
- immune to computer viruses that steal from software wallets
- can be used securely and interactively, private keys never need to touch potentially-vulnerable software
- much of the time, the software is open source, allowing a user to validate the entire operation of the device
Key takeaways – When you own cryptocurrencies, what you really own is a private key. Your coins are associated with a set of “public/private key”. – Your coins do not physically exist on any device — not even your Ledger hardware wallet. – Ledger hardware wallets store and safekeep your private keys.