What is a hardware wallet?

A hardware wallet is a device used to securely and offline store the private keys of your public (receiving) addresses. This is important because only the person with the private keys has access to the cryptos at those addresses.

The advantage of this is that you have your coins in your own management and do not have to store them with a central party like an exchange. You are your own bank. The past has enough examples of hacked exchanges. Also, a hot wallet (on a phone or PC that is always on) carries more risk than a hardware wallet (cold wallet). A hardware wallet mostly operates offline and has a security chip.

Thus, a hardware wallet is the safest way to manage your cryptocurrencies yourself. You can best view a hardware wallet as a physical key with which you can show that you are the owner of bitcoin or other crypto on the blockchain. They are available in all shapes and sizes. For example, the Ledger Nano S Plus looks like a USB stick.

TREZOR T

Storing your bitcoin, ether, and altcoins is now easier than ever. The Trezor T introduces a new, easy to use touchscreen, and it is ready for the future with its new USB-C connection and microSD card compatibility.

Access:

• Chrome extension
• Android application
• Log in on MyEtherWallet

Blockstream Jade

The Blockstream Jade is a bitcoin-only wallet. It features a camera, allowing it to be used in an air-gapped manner. This means that Blockstream never directly connects to your computer unless you use it via a cable. The Blockstream Jade has its own app (Blockstream Green) and is compatible with various wallets including Electrum, BlueWallet, Nunchuck, Sparrow, and Specter.

Unique features:

• Bitcoin-only 
• Can be used both wired and air-gapped 
• Comes with extensive security functionalities

BitBox02

The BitBox02 is a minimalistic hardware wallet and two-factor authenticator that focuses on safety and privacy. This hardware wallet combines the highest level of security, ‘cold storage’, with the ease of use of a software wallet. It supports multiple cryptocurrencies like bitcoin, ether or litecoin, and all ERC-20 tokens.

Properties:​

• With the BitBox02 native software client, security risks of browser-based clients are avoided
• Has a ‘hidden wallet’ function

How do I secure my hardware wallet?

Your hardware wallet doesn't actually store your coins; it stores the passwords that grant access to your coins. These passwords are unique to each individual and consist of 12 or 24 unique words. The combination of these words is also known as the private key. With this private key, you prove on the blockchain that you are the owner of a specific address.

When you want to send your cryptocurrencies to another address, the transaction must first be signed with the corresponding private key. Only you possess the private key, making it impossible for others to spend your cryptocurrencies. Think of a hardware wallet as a device that allows you to sign a transaction and prove ownership of the coins.

Backup

Now, imagine you lose your hardware wallet, it gets stolen, or it is lost in a fire. Do you lose your coins forever? No, fortunately not. When setting up your wallet, you can create a recovery "seed phrase."

A seed phrase is a series of 12 to 24 random words that the device generates for you. For the blockchain, the first four letters of these words serve as a sort of backup identification. With these words, you always have access to your coins, no matter where you are.

We always recommend creating a seed phrase and keeping it safe. After all, whoever possesses the words has access to the associated coins. A hardware wallet generates the 12/24 words offline, making it impossible for any hacker to access them. Therefore, it's crucial to store the seed phrase offline as well. Otherwise, you become more vulnerable to theft by hackers.

IMPORTANT: Never enter your seed phrase online!

What is the most secure way to store your backup?

SOLIDHODL: The safest method of storing your backup seed

It is extremely important to keep your recovery seed phrase safe. Never store it digitally. After setting up the wallet, you will be asked to save your recovery seed. The 12-24 words are usually written down on a piece of paper by most people. However, for many people, it often stops at this first step.

This is a pity! Because BEWARE: they forget a very important step: a secure backup with an eye to the future and potential risks. Because the piece of paper where the backup is now stored is not future-proof.

SOLIDHODL is therefore the solution to secure your crypto assets against unwanted risks. It is:

• Future-proof: the metal SOLIDHODL plate is made of stainless steel, so it is well protected against high temperatures, water, and corrosion. The engraving is in the metal, so even without the ink, everything remains legible. 
• Simple and clear: with the included Sleeve, you won't get distracted while recording your recovery seed because you can focus on one column at a time. The Engraving Pen is made of hardened steel, making the holes you punch in the metal clearly visible. 

An average house fire is a piece of cake for the SOLIDHODL. The metal also does not rust. Are your 12/24 words in a SOLIDHODL? Then they are truly immortalized. This way, you always have access to your coins, no matter what happens.