What is a hardware wallet and why should you consider using one for your NFT transactions?
It’s that intangible, non physical nature of crypto-currency that make it so mysterious and somewhat circumspect. But,
Is this the answer to having a more tangible hold on your crypto-currency?
You may have already thought, wouldn’t it be good if you could somehow backup and store your crypto-currency related data on a portable drive for safe keeping.
Hardware Wallet Grey Areas
I know, me too, I mean after all the crypto-currency which I thought I’d been collecting over the years may have never evaporated along with the very vague idea that I may have, or maybe not have, lost some crypto-currency – something to do with Mt Gox (lol – I digress, as ‘they’ say).
No, but seriously, my point is; backing up your data to a hardware wallet seems an intuitively prudent idea for truly keep tabs on your blockchain activity.
However, as with everything in life, there seems to be a balance between the pros and cons of good ideas and how unforeseen events can sometimes expose vulnerabilities.
Hardware Wallet Pro and Cons.
For example, what if you lose or damage your hardware wallet?
All may not be lost as you can both protect your wallet with a PIN code as well as use recovery software. In such an event, where your wallet has been compromised, lost or stolen, using your seed phrase may allow you enough time to transfer your crypto-currency to a new wallet.
What if your hardware wallet falls into the wrong hands?
As mentioned above you will have means of fraughting any bad actors. However, there are “pre-precautions” you can take before even purchasing a hardware wallet. Such as, buying from a reputable supplier and ensuring that your device has not been tampered with before using.
How Do Hardware Wallets Work?
Hardware wallets are stripped down cold storage computers tailored specifically for utilising your digital signature and storing your private keys without being connected to the internet…
Hardware wallets do not technically hold bitcoins, but rather uses the passwords, or keys assigned to them for accessing, signing and validating your crypto transactions