Pros and cons of hardware wallets

What are hardware cryptocurrency wallets?

Hardware wallets keep a crypto user's private keys in “cold storage”, which means they are not connected to the internet except when the user needs to briefly connect them to the worldwide web in order to complete a transaction. Software or web-based crypto wallets are “hot”, which means they are always on-line. Hot wallets give hackers access, potentially providing the means for them to steal your money. Because of this, it is considered that hardware wallets are a safer way to keep crypto assets out of the wrong hands. Some new or casual crypto users might not wish to avoid thinking about private keys or custody, so many cryptocurrency exchanges handle wallet services on behalf of account holders (known as a custodial wallet). But, this means you have to give your private keys to someone else. On the other hand, hardware wallets give users a physical piece of equipment they can use to keep their private keys safe. Hardware wallets most often …