Hardware Wallet

A hardware wallet is a physical device designed specifically to generate, store, and manage cryptocurrency keys, such as those used for Bitcoin. The main advantage of a hardware wallet is that it keeps your private keys isolated from internet-connected devices, greatly reducing the risk of theft from online attacks. This type of offline security is known as cold storage.

Most modern hardware wallets follow industry standards like BIP 32 (Hierarchical Deterministic wallets) and BIP 39 (mnemonic phrases), letting users recover their wallets and manage multiple accounts using a single backup phrase. While hardware wallets are generally considered more secure than software wallets, not all devices offer the same features or level of protection. Always research carefully before choosing a hardware wallet for your cryptocurrency.