Hello Everyone
Money can be in any form like digital assets or in fiat notes but in both cases, security and safety are on the top. We have banks to deposit the fiat money that we need for our daily life and it remains safer there but in cryptocurrency, it's advised not to keep our crypto holdings on the exchange if we are not trading.
All exchanges provide wallets to keep our crypto but hacking is one of the biggest problems that can happen with any exchange in this scenario it's a risky way to hold coins in exchnage. There are 2 other ways to keep our crypto coins secure. One is a paper wallet and another is a hardware wallet. I have seen people talking about hardware wallets more than paper wallets so I assume that this is easy to use and preferred because it provides security. I have also never come across any instance of the hack from a hardware wallet yet.
What is a hardware wallet?
The hardware wallet is so far the safest way to keep our crypto tokens and entire control is on our hands so we can rest assured with safety and security.
A hardware wallet is a special type of bitcoin wallet which stores the user's private keys in a secure hardware device. They have major advantages over standard software wallets: private keys are often stored in a protected area of a microcontroller, and cannot be transferred out of the device in plaintext.
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Hack events are happening every year and even leading exchanges have been attacked so it's difficult to say whether all the exchanges are secured enough and difficult to hack the funds and user data. Recently one of the exchnage in India named BuyUCoin had a data breach and user data for 325k people was stolen. These days our personal information is so crucial and if it's revealed then many scammers can use it to steal our data since many of us use the same information with various exchanges.
I also prefer to use the hardware wallet but I don't have Bitcoin and for Hive, I have all of it in staking form which is difficult to steal. Maybe in the future when I would have more crypto holding then for sure I will prefer to buy one hardware wallet. My current holding in other coin is too less that may not be even the same value of the wallet so I don't think of buying one as of now.
Thank you so much everyone and share your views about using the hardware wallet.
have a nice day.