The crypto market is exciting and unpredictable, with innovative projects and sudden price swings sure to keep you on the edge of your seat. Regardless of the size of your investments or the state of the market, you will always be at risk of losing the funds in your crypto wallet either to cyber attacks or simple human error. One of the best ways to prevent this scenario is to store your crypto in a hardware wallet.
Whether you're caught up in the volatility of a bull run or waiting out the inaction during a bear market, here’s why getting a hardware wallet is a must for guaranteeing the security of your crypto assets.
A hardware wallet is a USB-type physical device that stores a user's private keys offline. Unlike software wallets that store your crypto assets online for easy access, hardware wallets need to be physically plugged into a computer or smartphone to access one's funds.
Hardware wallets generate private keys offline, and once generated, these keys remain within the device. The wallet itself is also protected by a security pin, which adds another layer of security for the users. Even if the wallet is connected to a malware-infected device, the private keys remain safe from security threats and hacking attempts.
Another benefit is that users are required to have physical access to the device to be able to use it for making transactions. Physical buttons on the device require manual confirmation for transactions, which helps prevent malware and online attacks. Although this makes hardware wallets less convenient to use, it makes them more secure compared to software wallets.
They also offer users more control over their assets. Since the private keys are stored within the device and fully managed by the user, no third-party company ever gets control over the account. This means that no one can lock you out of your account or keep you from being able to withdraw funds whenever you want.
Although a hardware wallet may be pricier upfront, the level of security and peace of mind it offers are definitely worth the investment.
The opportunity for quick profits makes crypto scams more rampant during a bull market. As prices go up, your assets become attractive targets for hackers.
Cryptocurrency exchanges and online wallets, though convenient, are hotbeds for hacks and technical glitches. Opting for cold storage through a hardware wallet gives you better security against these vulnerabilities. Keeping only the funds you need for trading in exchanges and storing the rest in a hardware wallet ensures you're not locked out of your assets when you need them most.
Another reason to use hardware wallets is to help you make investment decisions. The need for physical confirmation for any transaction gives you extra time to reconsider impulsive financial decisions.
During the long months of sideways activity during a bear market, it is wise to consider transferring the majority of your crypto assets to a hardware wallet. Keep minimal funds in your software wallet — just enough to execute quick trades when the opportunity arises. Store the rest in your hardware wallet, where they will be safe even if exchanges go bankrupt, abruptly change their user policies, or fall prey to cyber attacks.
Bear markets often provide opportunities to diversify your portfolio, and a hardware wallet can do just that. Hardware wallets can safely store multiple types of assets offline in a single device, sparing you the trouble of keeping track of multiple apps and giving you peace of mind that your private keys are safe. Also if you plan to use crypto for passive investment, cold staking through a hardware wallet is a safe option because the funds are in your control.
When buying a hardware wallet, always opt for reputable brands to avoid compromised or malfunctioning devices. Do not buy second-hand devices, which may contain malware left by previous owners. Leading names like Trezor and Ledger are well-known for their quality.
In the Philippines, Coinvault is an authorized Trezor and Ledger reseller that offers a variety of hardware wallet options for different budgets and needs. Whether you’re a seasoned investor or a newbie exploring the world of cryptocurrencies, they have a hardware wallet that’s just right for you.
A hardware wallet is your best option for protecting your assets. In a bull market, it offers the extra security you need in the threat of crypto scams. In a bear market, it gives you secure long-term storage for diversified funds. Either way, investing in a reputable hardware wallet is crucial to your quest for financial freedom in the crypto space.
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