One of the varieties of wallets for cryptocurrency is hardware wallet. They are not only virtual repositories for Bitcoins, but you can even feel them physically in your hands because they look like a flash drive where you store your crypto-tokens. In this case, the device for operating cryptocurrency assets must be purchased – they are not provided on a free basis, like online clients or desktop applications.
Hardware wallet: how it works
A hardware wallet is a kind of offline storage for securing your cryptocurrency security assets. Here, the Internet does not have access to your private keys and other confidential information, which excludes the possibility of hacking and stealing funds. In addition, the use of such wallets when connecting to hacked devices or devices that do not have the required level of protection is safe.
Most hardware wallets are equipped with screens. In addition to the fact that it is very convenient because the screen displays the actual information when working with the storage, it is also an additional security feature – it is easier to pass verification and monitor the state of your balance.
Below we will consider the most popular hardware cryptocurrency wallets.
Keep Key – one of the pioneers, equipped with a screen
This product entered the world market in 2015 and quickly gained a leading position, as well as the love of users. It is the second Bitcoin wallet, which is equipped with a screen for the convenience of working with cryptocurrency.
The rather impressive size of the display allows for maximum security for the media, while some of the security measures are not available in other interpretations of hardware wallets, which makes it a reliable means of storing coins. OLED-display is used to check all transactions and confirm them by pressing a special button.
The Keep Key hardware wallet provides the user with a number of advantages:
- The ability to independently control your funds – this type of wallet gives you the opportunity to fully control your own funds, so no one except you cannot carry out any actions with them, and freeze your account. In this case, do not forget about the observance of security measures and backup;
- Work in the conditions of the additional safety – loading of a wallet is made in a mode of a safe zone. This excludes the possibility of infection of the wallet by malicious software;
- Platform support – the wallet successfully works in conjunction with devices running on Windows, Linux, MacOS, Android platforms;
- Cryptocurrency package support – the system provides effective work with a lot of popular altcoins, and the list is regularly expanded;
- The built-in exchange – the integrated ShapeShift exchange allows to exchange currencies in the most comfortable conditions;
- Customer support – the product effectively works in tandem with the most popular Bitcoin clients, including Ethereum, Mycelium, and MultiBit;
- Safe initialization – the wallet system generates a private key using a random generator supported by a stationary device.
From the weaknesses of the Keep Key wallet, it should be noted:
- Novelty – the relative youth of the product is associated with the likelihood of system bugs and the need for additional audit;
- Variable checking – working with such a hardware storage implies passing a transaction check using the software of a particular device to which the wallet is connected;
- Relative confidentiality – the security of confidential information depends on the software of the device to which the connection is made. It is necessary to take care of the quality of safety in advance;
- Regulation of commissions – commissions for transactions are regulated directly by software installed on your device.
For fans of learning the sub-optimal product, the source code for Keep Key is available at https://github.com/keepkey/.
Anyone can conduct an audit and make sure of the functionality of the project.
You can keep track of the current product information on the official Keep Key website – https://www.keepkey.com.
Ledger Nano S – economical and functional
The Ledger Nano S hardware wallet is one of the top three offline depositories for cryptocurrency, which is equipped with a screen. It is presented by a pleasant price and high rating among users. The project was launched in 2016 and has already managed to occupy its niche in the cryptocurrency market.
The Ledger Nano S hardware bitcoin wallet opens the following options for the user:
- The ability to fully control own assets – no one other than the owner of the funds can access them, freeze the account or conduct a transaction. If you follow the security measures and use the backup, your funds will always be under reliable protection;
- Secure work with the cryptocurrency – storing cryptocurrency assets in offline mode provides maximum security and excludes the impact on the wallet of malicious software.
Among the difficulties while using the Ledger Nano S wallet, it should be noted:
- The need for additional audit and testing to eliminate possible system errors and dangerous codes;
- The dependency of the transaction verification process, the confidentiality of data storage and the regulation of commissions for conducting transactions from the software installed on the device where the wallet is connected.
For those who want to conduct an audit of the source code of the product is available at https://github.com/LedgerHQ/.
For full information about the Ledger Nano S project, users can visit the official website of the product – https://www.ledgerwallet.com.
Trezor – maximum safe storage
The Trezor project entered the market in 2014 and is the first of its kind hardware wallet that allows users to safely store cryptocurrency assets. In this case, work with the tools can be carried out on conditions of complete safety even when connected to the infected device.
Developers of Trezor innovative hardware wallet provide cryptocurrency users with the following options:
- Independent control of its funds – the user independently decides how to dispose of his Bitcoin assets. In this case, no one can freeze the account or waste your funds under conditions of compliance with security measures and use the backup option;
- Work with funds in conditions of full transparency. All users are given the opportunity to familiarize themselves with the algorithm of the platform mechanics;
- Users conduct transactions in full security mode. At the same time, even if you connect to a malware infected with the device, the device is protected from any dangers;
- Effective work when connecting to devices running on Windows platforms, iOS, Android, Linux;
- The ability to quickly install without a complicated registration procedure. The system startup algorithm includes only a few simple steps in the presence of system prompts;
- The configuration of the wallet is characterized by water and heat resistance properties.
Among the minuses of working with Trezor, one can note the presence of direct dependence on the software installed on a mobile or stationary device. The specifics of the software and the effectiveness of its work and security depends on the procedure for verifying transactions, confidential data storage and the regulation of commissions for transactions.
The source code for the Trezor project is on GitHub – https://github.com/trezor/.
If you want to keep track of the latest information about the product and all the news of the project, then this data is available on the official website of Trezor – https://trezor.io.
Digital Box – minimalism and confidentiality
The next representative of hardware wallets Digital Box is characterized by a minimalistic design and an effective system of security and confidentiality for handling cryptocurrency funds. Users are offered the necessary functionality, which is enclosed in a small device, convenient and comfortable to use.
The Digital Box hardware wallet provides users with the following advantages in working with tools:
- Full control of funds – only you have access to your cryptocurrency assets, so no one can arbitrarily freeze your account or spend money stored in your wallet without your private information. Do not forget about backup and security and you are guaranteed reliable storage of your digital money;
- Security – work in an environment of effective security guarantees the safety of funds and protection from the impact of malicious software;
- Platform support – the wallet effectively works in tandem with devices running on iOS and Android platforms;
- Wide functionality – the ability to switch between several wallets;
- Anonymity – the ability to work with proxy servers and tunnels such as Tor;
- Additional protection system – the wallet is opened by using additional passwords. If you enter an incorrect password for backup, another wallet is created. Use of two-factor authorization;
- Configuration – the case of the wallet is made of a special epoxy composition, characterized by increased strength and wear-resistant properties, with a very compact size and design of the device. Private keys are placed on a special chip with the warranty period of 50 years. No need to use additional batteries and cables.
From the negative when working with Digital Box, we can single out a rare probability of system errors, as well as the dependence of quality work on the software installed on the device, which can vary the specifics of confidentiality and the calculation of commissions for conducting transactions.
Access to the source code of the Digital Box can be obtained at GitHub – https://github.com/digitalbitbox/.
On the official website of Digital Box https://digitalbitbox.com, you can track the current information about the project and the output of related products.