What is a hardware wallet?

A hardware wallet is a compact device for storing electronic currencies. Outwardly, it looks like a keychain with buttons and a USB connector for connecting to a PC.

The main task of hardware cryptocurrency wallets is to store the private encrypted key. Funds are sent through a PC connected to the network, but the keys themselves do not "leak" to the network. Such devices are reliably protected from hacking.

Manufacturers of such cryptocurrency wallets always offer several levels of protection at the same time. They usually include a PIN that needs to be set on first start. It is required to be entered when the user tries to open the wallet. After several unsuccessful attempts, the device will be blocked.

Also, to access the funds on the wallet, a seed phrase is required. This is the initial phrase that allows you to access your account in case the device is lost. A seed phrase consists of a set of unrelated words in a specific order. As a rule, these words are given when the device is connected to the PC for the first time. The user must remember (or rather write down) not only the words, but also their sequence. This method of protection is considered the best of all types, since it also provides the ability to gain access even if the device itself is lost.