Hardware wallet
A physical signing device that keeps private keys isolated while approving cryptocurrency transactions.
- Also known as
- hardware-walletcold wallet devicesigning device
A hardware wallet is a purpose-built device that stores private keys and signs transactions without exposing those keys to an internet-connected computer or phone. The host prepares the transaction, the device displays what it is signing, and the signed transaction is returned for broadcast.
Hardware wallets reduce remote attack risk, but they are not magic. Users still need to verify addresses on the device screen, protect the seed phrase, use trusted firmware sources, and avoid signing messages they do not understand.
Most hardware wallets back up accounts with a 12- or 24-word seed phrase, sometimes with an optional passphrase. If the device is lost, the seed can restore the wallet on compatible software or a replacement device.
Hardware wallets add cost and operational friction. They are best suited for savings, treasury, or high-value signing, while small daily balances may be more convenient in a hot wallet.
Related terms
4 linkedExplore connected entries beyond the alphabetical index.
Cold Storage
→Keeping private keys offline to reduce risk of remote compromise.
Air-gapped Wallet
→A wallet kept on a device that has never been connected to the internet.
Custodial Wallet
→A wallet where a third party controls the private keys on your behalf.
Deterministic Wallet
→A wallet that derives all keys and addresses from a single seed phrase, enabling easy backup and recovery.
All terms and definitions may update as the Cryptionary improves.
