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What Is a Hardware Wallet?

A hardware wallet is a small physical device made specifically to protect your Bitcoin keys.

The private keys are created and stored inside the device and NEVER leave it. Even when the device is connected to a computer, the keys stay isolated.

This makes hardware wallets much safer than software wallets.

Why Hardware Wallets Exist​

Computers and phones are general purpose devices. They connect to the internet, run many programs, and are exposed to more risks.

A hardware wallet does one job only: protect your keys and sign transactions securely.

Because of this, hardware wallets are commonly used for:

  • Long term savings
  • Larger amounts of Bitcoin
  • Peace of mind

How Hardware Wallets Work​

  • You plug the device into your computer or phone
  • You create a transaction using wallet software
  • The hardware wallet signs the transaction internally
  • The signed transaction is sent to the Bitcoin network
  • At no point does your private key touch the internet.
Keep in Mind
  • You still need to back up your seed phrase
  • Losing the device is not a problem if you have the backup
  • Hardware wallets are secure, but you remain responsible
  • Think of a hardware wallet as a personal vault, not a bank.