“Hardware wallets are a very secure form of Bitcoin storage.”
“They tried to hack my bitcoin but I had it secured on an offline hardware wallet.”
“My hardware wallet is backed up with a private key so I can never lose my bitcoin.”
Definition(s) from the Web
- 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: (1) Private keys are often stored in a protected area of a microcontroller, and cannot be transferred out of the device in plaintext; (2) Immune to computer viruses that steal from software wallets; (3) Can be used securely and interactively, private keys never need to touch potentially-vulnerable software; (4) Much of the time, the software is open source, allowing a user to validate the entire operation of the device. Source
- Hardware wallet is a physical electronic device, built for the sole purpose of securing bitcoins. The core innovation is that the hardware wallet must be connected to your computer, phone, or tablet before bitcoins may be spent.
Hardware wallets are a good choice if you’re serious about security and convenient, reliable Bitcoin storage. Bitcoin hardware wallets keep private keys separate from vulnerable, internet-connected devices. Your all-important private keys are maintained in a secure offline environment on the hardware wallet, fully protected even should the device be plugged into a malware-infected computer. As bitcoins are digital, cybercriminals could, potentially, target your computer’s “software wallet” and steal them by accessing your private key.
Generating and storing private keys offline using a hardware wallet ensures that hackers have no way to reach your bitcoins. Hackers would have to steal the hardware wallet itself, but even then, it can be protected with a PIN code. Don’t worry about your hardware wallet getting stolen, lost or damaged either; so long as you create a secret backup code, you can always retrieve your bitcoins. Source
- A cryptocurrency wallet is a device, physical medium, program or a service which stores the public and/or private keys for cryptocurrency transactions. In addition to this basic function of storing the keys, a cryptocurrency wallet more often also offers the functionality of encrypting and/or signing information. Signing can for example result in executing a smart contract, a cryptocurrency transaction, identification or legally signing a ‘document’… Allows one party to make electronic transactions with another party bartering digital currency units for goods and services. This can include purchasing items on-line with a computer or using a smartphone to purchase something at a store.
Money can be deposited in the digital wallet prior to any transactions or, in other cases, an individual’s bank account can be linked to the digital wallet. Users might also have their driver’s license, health card, loyalty card(s) and other ID documents stored within the wallet. The credentials can be passed to a merchant’s terminal wirelessly via near field communication (NFC).
Increasingly, digital wallets are being made not just for basic financial transactions but to also authenticate the holder’s credentials. For example, a digital wallet could verify the age of the buyer to the store while purchasing alcohol. The system has already gained popularity in Japan, where digital wallets are known as “wallet mobiles”.
A cryptocurrency wallet is a digital wallet where private keys are stored for cryptocurrencies like bitcoin. Source
Cold Storage / Cold Wallet