Hardware wallets are small, fragile devices that hold the keys to your financial freedom! We’re sure by now you know the importance of owning one if you hold any cryptocurrency. If not, you should read this post.
A hardware wallet keeps your private keys offline and away from easily hackable devices such as computers and smartphones. When you move your assets onto a hardware wallet, you are trading a plethora of digital threats for the more predictable, controllable risks of the physical world.
But these physical risks are still very real and it’s important to address them if you plan on holding onto your cryptocurrency wealth for years to come.
Is a single hardware wallet enough to protect all of your assets?
Here’s why you NEED more than one...
TO HAVE AN EXTRA BACKUP
The truth is, hardware wallets aren’t immune to physical threats. As is any piece of technology, they are vulnerable to damage or compromise by the myriad hazards of the material world, such as fires, floods, theft, misplacement… even a spilled cup of coffee!
Whilst it’s not the end of the world if something does happen to your wallet (so long as you still have access to your 24-word recovery phrase), you are going to need a second device to restore your assets. If you have two hardware wallets, you can safely and securely configure your seed key and have access to your restored wallet within minutes without any issues.
MORE FEATURES
No two hardware wallets are the same. Each model comes with it’s own set of features, pros and cons, and will suit you depending on what coins you have and your personal needs. No single device will check every box.
ADDED SECURITY
The preferred method of many longtime HODLers is to store funds on multiple hardware wallets and scatter them far and wide. Using hardware wallets from multiple vendors and keeping them at multiple locations ensures that no single event will have you losing all of your funds.
If you store your cryptocurrency on a single hardware wallet, you are betting all of your cryptocurrency on a single seed key. Suppose you lose that key; you’ve now lost all of your coins. On the other hand, if you store your assets across multiple devices, even if you do lose one key, you haven’t lost all of your crypto. It’s a much safer option and helps you mitigate the risk of physical threats. However, with more wallets does come more responsibility to keep several keys safe.
POPULAR HARDWARE WALLETS
Of course the question now is, which hardware wallets should you own?
You can visit our store to see the most popular options as well as each hardware wallet’s own set of functionalities and features.
Have any questions? Get in touch with us at support@coinstop.com.au