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Forgive my ignorance, but could someone explain what a "hardware wallet" is?

• DiThi 9y ago
  A hardware wallet is a device to store cryptocurrency. When you have bitcoins or ether or whatever, you're 100% responsible of its safety, lose the keys, lose the coins. Just like cash or gold, and unlike PayPal or banks (where they owe you the quantity of your balance). The problem is that holding keys in a PC or a phone is very risky: malware, security holes, etc. A hardware wallet allows very little communication between the key holder and the wallet usage, so the attack surface is several orders of magnitude smaller. You can even use it in a virus-ridden Windows XP machine. edit: Another problem with crypto coin keys is that they can steal them and you won't notice until they spend the coins. Just like what happened with MtGox: they assumed there was no theft because the thiefs didn't transfer the coins immediately. With a hardware wallet you can be sure nobody else is holding your keys (but it doesn't hurt to transfer them from time to time to a new wallet, which means the coins get new keys).
  • pgl 9y ago
    Thanks for the detailed explanation.
  • canada_dry 9y ago
    > You can even use it in a virus-ridden Windows machine. FTFY.