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Best crypto hardware wallets in 2021 • Benzinga Crypto

If you’ve been investing in cryptocurrency for a while now, you’ve probably heard of cryptocurrency hardware wallets. But what are hardware wallets, and how do they help secure your digital assets? Hardware wallets are by far the safest way to store cryptocurrency, and that’s a no-brainer for any investor who buys crypto for the long term. Hardware wallets store the keys to your cryptocurrency (which give access to your cryptocurrency) offline, preventing online hackers from stealing your funds.

As hundreds of thousands of investors stormed the cryptocurrency markets in search of the next big altcoin, hackers took part in the crypto craze with a more secure approach. Earlier this year, Japanese hackers fled with just over $ 500 million in NEM coins after invading the servers of an Asia-based exchange, CoinCheck.

After the hack, hundreds of thousands of people realized that it was time to diversify coin holdings in different wallets, be it software or hardware storage solutions.

What is a crypto hardware wallet?

Instead of storing valuable and intangible coins on the servers of your favorite exchange, it makes a lot more sense to control your crypto from a device that is not accessible from the Internet.

Exchanges are obvious targets of altcoin heists, as they often carry millions of US dollars in coins as part of their daily business operations. A crypto hardware wallet, unlike the assets it carries, is tangible. The good ones have easy to use operating systems and interfaces. They require a PIN code to access them and can only be connected to the Internet using your computer’s USB or Bluetooth port.

Some wallets are even available in different languages. The most notable features of using hardware wallets are that they provide security using cryptography and offer the ability to back up your coins using your private keys. Your private key is what gives access to your cryptocurrency, which is technically stored in the digital asset ledger. This way, you will be able to access your funds with your private keys in case your hardware wallet is lost or stolen.

What to look for in a hardware crypto wallet

  • PIN to access
  • 2-factor authentication
  • Easy to use interface
  • Variety of parts supported
  • Compatibility with other online and hardware wallets

Hardware wallets vs software wallets

While hardware wallets are the most secure way to store cryptocurrency, software wallets offer their own unique advantages to cryptocurrency investors. Most crypto investors use both hardware and software wallets; you can think of hardware wallets like your bank safe and software wallets like the wallet you keep in your pocket. Software wallets encrypt access to your digital assets on a computer or smartphone, making it easy to send and receive cryptocurrency from an exchange or other platform. Although software wallets are free and easy to use, they are generally considered to be less secure than hardware wallets.

Best hardware wallets