A hardware wallet is the most common step up from keeping crypto on an exchange or phone app. This guide explains what it does and how to use one. It is part of Crypto secrets.
How a hardware wallet keeps keys away from your computer
Your computer or phone
Online and exposed. Prepares the transaction.
Hardware wallet
Holds the keys. You check details on its own screen.
Signed transaction
Only the signature goes back. The key stays put.
Should you get one?
Start with do I need a hardware wallet?, then see how it compares in hardware wallet vs software wallet vs exchange.
Buying and choosing
- How to choose: secure elements, open source and air gaps.
- How to buy safely: avoid marketplaces and second-hand devices.
Setting up and using it
- First-day setup checklist.
- Firmware updates: when and how to update.
- PIN vs seed phrase vs passphrase: what each secret does.
- Air-gapped signing for advanced users.
When something goes wrong
If it is lost, stolen or broken, your funds are safe as long as you have your recovery phrase. So your backup is what really matters. See how to back up a seed phrase.
What it does not protect against
A hardware wallet cannot stop you from typing your words into a fake site, or approving a bad transaction. The one rule still applies: nobody legitimate will ever ask for your phrase.