With the growth of the industry as a whole, cryptocurrency is attracting more and more investors and traders. Large amounts of sums are stored in their crypto wallets. That is why safe storage is very important.
There are several storage options available today, each with its pros and cons in terms of safety and convenience. But, the statistics on hacking and theft of cryptocurrencies from different types of wallets show that the hardware wallets for EMRX and other cryptocurrencies have been the leaders in this area in terms of security.
They are made of aluminum or plastic and look like a USB flash drive. The task of the device is the autonomous storage of cryptocurrency without going online. Software and hardware prevent viruses from infecting hardware. Therefore, hardware wallets are considered to be a reliable method of storing cryptocurrency.
A hardware wallet is a generic name for the category of portable storage devices for the cryptocurrency "cold" storage. In this case, we do not mean coins, but private keys, seed-words, and other data that provide access to the funds assigned to them. The assets themselves, of course, always remain on the balance of addresses in the blockchain.
Such devices appeared in 2013, but initially few people were interested in them due to the high cost. Over time, their prices dropped slightly, and holders of cryptocurrencies began to realize their benefits.
How it works
The main feature of the hardware wallet is the lack of a constant direct connection to the Internet, which makes it impossible for remote attacks to obtain unauthorized access to the contents of the wallet, which is also encrypted with a password. To interact with such devices, one needs specialized software and a connection to a computer with Internet access. In this case, transactions are formed offline, and only their electronic signatures are transmitted to the network.
Most hardware wallets have small information screens to check the balance and correct addresses of the recipients of transfers, as well as physical buttons for entering a PIN code and confirming operations performed. In fact, all such devices perform the same task, but they differ in individual functionality and parameters depending on the manufacturer.
The hardware wallet is designed in such a way that it can be connected to an infected PC or smartphone without the risk of leaking private keys. When a user creates a transaction, he sends it to a hardware wallet. This transaction is incomplete as it needs to be signed with a private key on the device. The user confirms on the hardware wallet that the amount and address are correct. Then the transaction is signed and sent back to the software, which broadcasts it to the cryptocurrency network.
- Connect your device to your computer and unlock it with a PIN.
- Create a transaction, for example on Emirex, and then confirm it on the device screen.
- Done, your transaction was successful and the keys are safe.
There are various benefits of using a hardware wallet, including its main advantage, which no other method of storing cryptocurrencies can compete with - the impossibility of remote access to funds by hackers, which is provided by an offline, a multi-level authentication system and in some cases the need to confirm transactions by the device interface.
- Multi-currency (can be used with various blockchains like Bitcoin or Ethereum);
- Offline transaction signature (similar to the desktop wallets);
- Convenient (no need to download anything, just simple access through the device);
- The ability to create backup copies of all codes that were on the device (necessary in the event of a breakdown).
Is it necessary?
It's hard to find any other storage method that is safer than a hardware wallet. Cold storage is simply not a substitute for anything, as it eliminates many of the risks of self-managing funds. There are many hardware wallets and as the popularity of cryptocurrency grows, the process of creating newer and more securely modified digital wallets is underway. They are becoming free of any vulnerabilities and flaws that could threaten crypto assets.
If you are new to cryptocurrencies, then a hardware wallet is definitely one of the best options for storing your crypto assets safely. When purchasing, make sure that you are buying the device from an authentic manufacturer that you can trust.