Should I buy a Cryptocurrency Hardware Wallet?
The short answer to that question is YES but life is never that simple. The real answer is it depends. It depends on the value of the cryptocurrencies you have or intend to purchase. If let's say you only possess $50 worth of Bitcoin, it wouldn't make much sense to spend $150 on a hardware wallet. That $150 is better spent on buying more Bitcoin. However, the $150 makes a lot more sense when you possess thousands worth of cryptocurrency.
At this moment, there are 3 big players in this space:
We have done a comparison of the 3 wallets in the past. Click this link if you are interested.
So you possess or intend to purchase quite a bit of cryptocurrency, why should you still purchase a hardware wallet?
Hardware wallets offer greater security than software wallets, as the hardware wallet generates a private key and stores it on the device. The private keys are also separated from the vulnerable and connected internet and maintained in a safe offline environment. This means that your private keys are safe even if you plug it into a compromised computer. All transactions are also executed on the device, and it requires you to physically press a button to confirm the transaction.
The wallet stores your private keys in an offline setting, making it impossible for malicious actors online to steal your coins. There have been no coins stolen directly from a Trezor or Ledger to date, making it the safest option to keep your coins. There has been an incident where a person was sold a tampered Ledger Nano S which resulted in the scammer being able to hack the funds from the wallet.
That is why it is important to purchase hardware wallets from Authorized Resellers like us.
Billions worth of Cryptocurrency have been Hacked from Online Wallets
While storing coins on the exchange is convenient, you don’t really own the coins unless you have the private keys to your wallet. There have been numerous exchange hacks over the last few years:
- Mt. Gox – Approximately 850,000 Bitcoin were stolen in 2014 – $15.3 billion in today’s price
- Bitfinex – Approximately 120,000 Bitcoin were stolen in 2016 – $2.16 billion in today’s price
- Nicehash – Approximately 4736 Bitcoin were stolen in 2017 – $85 million in today’s price
- Youbit – Approximately 4000 Bitcoin were stolen in 2017 – $70 million in today’s price
Users could have prevented their coins from getting stolen if they stored their coins in a hardware wallet.