A hardware wallet is a special electronic device that uses a secure chip to generate and store private keys. In the world of encrypted digital assets, the private key is the only proof of the ownership of assets. Therefore, the security of your private key is the top concern of encrypted digital assets holders.
The hardware stores the private key in the secure chip that is completely isolated from the network. Such a method of storage will not expose the private key to hackers, which significantly reduces the possibility of the private key being disclosed or stolen.
Compared with a software wallet, most of the hardware wallets have the following features:
- Using a secure chip to generate and store the private key.
- Completely isolated from the network and hackers.
- With physical buttons and a screen displaying transaction information.
- All transactions are signed through the hardware wallet, and the applications will not contact the private key.
Common hardware wallets are: imKey, Ledger and CoolWallet.