Hardware wallet

A hardware wallet is a separate device that stores private keys and signs transactions inside itself, so the keys never reach a computer or phone.

The computer prepares the transaction, the device shows the amount and address on its own screen, and you confirm with a button. Only the finished signature goes back to the computer. That way a virus on your laptop can’t steal the key. Examples are Trezor and BitBox.

A hardware wallet doesn’t store coins. The coins are on the network, and the device is only a way to sign for them. If the device breaks or is lost, the funds come back from the recovery phrase on a new unit. So the phrase matters more than the device.

This entry is short. Choosing a model, buying from a trusted source and the first start-up are covered in a separate pillar on hardware wallets.

Why it matters for your family

A device in a drawer may be locked by a PIN your family doesn’t know. The device alone gives them little. They need instructions: which model it is, where the recovery phrase is and who to call. The guide on access instructions for your family shows how to write that down.