{"id":7640,"date":"2022-12-21T14:15:30","date_gmt":"2022-12-21T14:15:30","guid":{"rendered":"https:\/\/cyberscrilla.com\/staging\/4768\/?p=7640"},"modified":"2022-12-21T22:47:46","modified_gmt":"2022-12-21T22:47:46","slug":"should-you-get-a-hardware-wallet","status":"publish","type":"post","link":"https:\/\/cyberscrilla.com\/staging\/4768\/should-you-get-a-hardware-wallet\/","title":{"rendered":"Should I Get A Hardware Wallet? (Cold-Storage Pros & Cons)"},"content":{"rendered":"\n

Trying to decide if you should get a hardware wallet or not can be tough. You\u2019ve likely heard they\u2019re the most secure way to store your digital assets but, you\u2019re also aware of the cost. <\/p>\n\n\n\n

Having used a hardware wallet for years, I\u2019m here to help you decide if a hardware wallet is really necessary with a list of pros and cons.<\/p>\n\n\n\n

Should You Get A Hardware Wallet?<\/h2>\n\n\n\n

If your currently own more than $79 worth of crypto or NFTs you should consider getting a hardware wallet. By not storing your digital assets in a cold-storage wallet, they’re at an increased risk of being stolen as they’re more susceptible to hacks and scams.<\/strong><\/p>\n\n\n\n

Nonetheless, I realize everyone is at a different point in their blockchain journey. You\u2019re likely either just getting started or you have a basic understanding of Web3 technology and you\u2019re looking to make wiser decisions as you progress.<\/p>\n\n\n\n

If this sounds like you, then you\u2019re in the right place.<\/p>\n\n\n\n

And if you\u2019re someone who believes you could never be scammed\u2014think again. Even the most proficient crypto investors have been scammed.<\/p>\n\n\n\n

Below is an extensive list of reasons why you should get a hardware wallet.<\/p>\n\n\n\n

Hardware Wallet Pros<\/h2>\n\n\n\n
\"Holding
Holding my Ledger hardware wallet<\/figcaption><\/figure>\n\n\n\n

Your wallet\u2019s private info is stored offline<\/h3>\n\n\n\n

Unlike software wallets which store your recovery phrase in the software online, a hardware wallet keeps your private key, recovery phrase, and PIN code on the device itself.<\/p>\n\n\n\n

Assuming you use a hardware wallet properly (solely as a storage solution), you completely eliminate the risk of a scammer or hacker getting ahold of your wallet\u2019s secret phrase. <\/p>\n\n\n\n

By keeping it disconnected from the internet, there\u2019s no way someone could ever steal your phrase. <\/p>\n\n\n\n

Hardware wallets are less susceptible to hacks<\/h3>\n\n\n\n

There is a long list of reasons why hardware wallets like Ledger<\/a> are less susceptible to hacks. <\/p>\n\n\n\n

Of course, the main reason is that it\u2019s disconnected from the online world where hackers and scammers lurk in every corner.<\/p>\n\n\n\n

Beyond being disconnected from the rest of the world, these wallets utilize advanced security hardware such as secure chips, which are also found in your bank card and passport. <\/p>\n\n\n\n

This combined with other security measures ensures your wallet remains secure from both physical and digital attacks.<\/p>\n\n\n\n

You remain in complete control of your assets<\/h3>\n\n\n\n

Although many software wallets like MetaMask enable you to own your keys and your assets (also known as self-custody) they do so with less security.<\/p>\n\n\n\n

There are no doubts that owning your wallet\u2019s private key is a huge safety factor when considering which crypto wallet to use, especially after the FTX fiasco.<\/p>\n\n\n\n

But, why not take security even further by using a cold-storage wallet? <\/p>\n\n\n\n

This way, not only do you own your keys, you literally own the physical device that holds your keys versus a software wallet that could be compromised at any time.<\/p>\n\n\n\n

Hardware wallets are compatible with multiple blockchains<\/h3>\n\n\n\n

Beyond their numerous security features, hardware wallets also have several functionalities that are likely preferred, especially if you\u2019re a serious collector, trader, or investor.<\/p>\n\n\n\n

Both Ledger and Trezor\u2014the current leaders in the hardware wallet industry\u2014are compatible with numerous blockchain networks such as \u200b\u200bBitcoin, Ethereum, Dogecoin, Chainlink, Litecoin, Cardano, and Solana.<\/p>\n\n\n\n

So, not only are these wallets compatible with thousands of coins associated with these networks but they can be used to manage NFTs as well. This saves you the hassle of having to manage multiple wallets.<\/p>\n\n\n\n

The cost is negligible compared to the security benefits<\/h3>\n\n\n\n

Determining whether or not you should get a hardware wallet largely comes down to cost. <\/p>\n\n\n\n

After all, these wallets range anywhere from $79 to over $250, which is much more compared to software wallets that are free to download and use.<\/p>\n\n\n\n

That said, the price is negligible when you consider the numerous security advantages you gain when you use a hardware wallet. <\/p>\n\n\n\n

That\u2019s why I say if you own more than $79 worth of digital assets (the cost of a hardware wallet), you should absolutely get one.<\/p>\n\n\n\n

Owning valuable assets and not storing them in a secure wallet is like owning a fancy car and not storing it in your garage because of the electricity costs to open and close the garage door\u2014it\u2019s just silly.<\/p>\n\n\n\n

Hardware wallets are the most secure storage solution<\/h3>\n\n\n\n

Overall, hardware wallets are the most secure storage solution for blockchain-based assets at this point in time. There\u2019s literally nothing better. <\/p>\n\n\n\n

Even the most elite collectors like Gary Vee, Matt Kalish, and Kevin Rose who own millions of dollars worth of crypto and NFTs use hardware wallets to store their collectibles.<\/p>\n\n\n\n

If your goal is to be on the same level as these guys, you must take wallet security seriously. Otherwise, all your hard-earned assets could be gone in the blink of an eye\u2014literally.<\/p>\n\n\n\n

Hardware Wallet Cons<\/h2>\n\n\n\n
\"A<\/figure>\n\n\n\n

I\u2019d be lying if I said hardware wallets didn\u2019t have some downsides. Here are some cons to using a hardware wallet.<\/p>\n\n\n\n

Not everyone can afford a hardware wallet<\/h3>\n\n\n\n

Considering the cost of a hardware wallet, not everyone can afford one. That\u2019s why many collectors and investors turn to free software wallets like MetaMask and Coinbase.<\/p>\n\n\n\n

However, if you have the money to buy $79 worth of assets then you should be able to fork over an extra $80 for a cold-storage wallet.<\/p>\n\n\n\n

If you can afford to buy assets but you can\u2019t afford a proper storage solution, then I recommend you stop buying assets altogether until you\u2019re able to purchase a hardware wallet. They might not be cheap\u2014but they\u2019re necessary.<\/p>\n\n\n\n

Physical wallets are more difficult to use<\/h3>\n\n\n\n

Hardware wallets come with a slight learning curve before you’re able to use them. First, you have to charge it, set it up, then connect it to your computer to download certain applications depending on your specific needs.<\/p>\n\n\n\n

Overall, the process requires more technical know-how to set up and get started. For someone who\u2019s just getting into the space, it could be slightly overwhelming.<\/p>\n\n\n\n

They\u2019re not as convenient as software wallets<\/h3>\n\n\n\n

Software wallets are so widely used and accepted in the crypto space because of how easy they are to use. You simply install the app, create your wallet, and you\u2019re good to go.<\/p>\n\n\n\n

A hardware wallet on the other hand is not as convenient. Unlike software wallets, you have to order your wallet from a trusted seller and wait for it to ship to your residence before you can set it up.<\/p>\n\n\n\n

Hence if you\u2019re in a hurry a hardware wallet will require more patience. Not only to set up but also to receive it. <\/p>\n\n\n\n

This is especially true if you order a wallet like Ledger which ships from France. If you live in the US, it could take up to 14 days to receive your device. <\/p>\n\n\n\n

Not all hardware wallets are made the same<\/h3>\n\n\n\n

It\u2019s true. Not all hardware wallets are made the same. There are only two notable brands I\u2019d trust with my assets or even recommend to others such as yourself<\/strong>\u2014Ledger and Trezor.<\/p>\n\n\n\n

Although there are other options available, they either lack reputation or innovation. The wallets that do have a reputation are very limited in what they can store as they\u2019re used for one specific blockchain and coin, like Bitcoin.<\/p>\n\n\n\n

As a result, consumers remain limited as to what they can purchase. Fortunately, both brands have upheld their solid reputation making either option a no-brainer.<\/p>\n\n\n\n

They don\u2019t last forever<\/h3>\n\n\n\n

Such as any device, hardware wallets don\u2019t last forever<\/a>. Ledger wallets are created to last anywhere from 3 to 5 years. It\u2019s not that they\u2019re made cheap, it\u2019s just that the battery (like iPhones) only lasts so long.<\/p>\n\n\n\n

And Ledger doesn\u2019t provide a battery replacement service, which means you\u2019re stuck buying a new wallet every few years. <\/p>\n\n\n\n

Not only can this get expensive, but it can be annoying especially because the average person probably doesn\u2019t use their hardware wallet enough to justify buying one every so often.<\/p>\n\n\n\n

Ahhh. The price we pay for security and peace of mind.<\/p>\n\n\n\n

You could still get hacked<\/h3>\n\n\n\n

I know a majority of the \u201cpros\u201d section talks about how secure a hardware wallet is, but that doesn\u2019t mean you can\u2019t still be hacked.<\/p>\n\n\n\n

Now, don\u2019t get me wrong. If you use a hardware wallet correctly (solely to store your digital goods) the likelihood of it being compromised is basically slim to none.<\/p>\n\n\n\n

However, if you\u2019re using your hardware wallet to make transactions, stake, and connect to every website possible, you\u2019re still likely to get scammed. Most scams are the result of the user (that\u2019s us) granting access to the scammer.<\/p>\n\n\n\n

When you connect your wallet to any decentralized app (dapp), you are verifying that you trust the website and approve of the connection. But, if you accidentally sign over your wallet\u2019s access to a scammer\u2014it\u2019s game over.<\/p>\n\n\n\n

Is A Hardware Wallet Really Necessary?<\/h2>\n\n\n\n
\"A
Should you get a hardware wallet easy guide<\/figcaption><\/figure>\n\n\n\n

After looking over the above list of pros and cons, you might still be on the fence about whether a hardware wallet is right for you. Although I believe it\u2019s worth every penny, it\u2019s not for everyone.<\/p>\n\n\n\n

I\u2019m going to help you decide once and for all if a hardware wallet is really necessary for your personal situation.<\/p>\n\n\n\n

A hardware wallet is necessary if:<\/h3>\n\n\n\n