I hear a lot about hardware wallets and I would like to know if, in terms of security and functionality, it makes sense to switch to one of them.
Thanks in advance for answers.
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Switch from what? Hot software wallet or cold software wallet?– user1425Commented Jan 14, 2019 at 12:00
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Keep in mind your coins are always on the blockchain, not in a hardware wallet. Hardware wallets hold keys, not coins.– DaveCommented Jan 14, 2019 at 21:55
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@Dave, no cryptocurrency wallet holds "coins", regardless if of the hardware variety or not. cialu never made that assumption in the question in any case.– jtgrassieCommented Jan 15, 2019 at 4:20
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@TEV both kinds of wallet.– cialuCommented Jan 17, 2019 at 7:59
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1 Answer
In it's simplest form, a hardware wallet is for holding your private keys on a non-internet connected device. It is also designed to be easy to use with your internet connected machine whereby it can sign transactions without you having to transfer keys to your regular internet connected computer.
Should you switch is entirely personal choice and threat profile. There are alternative ways to achieve what's outlined above, such as using a computer that is never connected to the internet for holding your keys and signing transactions on that machine then transferring the signed tx to your regular internet connected machine for broadcasting.
Another option is to use multiple wallets, one with small holdings on your regular computer for daily use and another being a paper wallet for larger longer-term larger holdings.
answered Jan 14, 2019 at 13:03
