A hardware wallet is a dedicated physical device that securely stores private keys and signs transactions offline to protect against malware and remote attacks.
A hardware wallet is a purpose-built device for managing cryptocurrency private keys and signing transactions securely. It isolates key material from internet-connected devices, reducing exposure to malware and phishing. Transactions are constructed on a computer or phone, sent to the device for approval and signing, and then returned as a signed transaction without the private key ever leaving the device.
"Using a hardware wallet, your private key never touches your computer—only the signature does."
"Common hardware wallets include devices from Ledger, Trezor, and BitBox; all require physical confirmation before signing."
Security models vary by device. Many hardware wallets use secure elements, passphrases, and PIN protection. Attack surfaces include supply-chain tampering, side-channel attacks, and insecure firmware. Best practices include verifying device authenticity, upgrading firmware from official sources, and using a strong BIP39 passphrase when supported.
"Enabling a BIP39 passphrase on your hardware wallet creates a hidden wallet that protects funds even if the seed is revealed."
"For high-value storage, combine a hardware wallet with multisig to mitigate single-device compromise."
Hardware wallets typically back up keys using a 12–24 word seed phrase compatible with deterministic wallets. Many support multiple chains and tokens. Some devices operate fully air-gapped using QR codes or microSD cards, while others connect via USB or Bluetooth.
"Air-gapped signing with QR codes avoids USB/Bluetooth attack surfaces."
"If you lose the device, you can restore funds on a new one using the seed phrase—keep it offline and secure."
Hardware wallets improve key isolation but add cost and UX overhead. Users must protect the seed phrase and device PIN. Firmware updates, vendor lock-in, and closed-source components can affect trust. For small amounts or frequent payments, a hot wallet may be more convenient.
"Daily spending is easier from a hot wallet, while savings are safer on a hardware wallet kept in secure storage."
"Open-source firmware allows independent audits but may lack secure elements; closed-source firmware can use certified chips but requires trust in the vendor."
All terms and definitions may update as the Cryptionary improves.