Monday, April 30, 2018

Should You Buy $100 Worth Hardware Wallet For Bitcoin?

No instances have yet been reported about Bitcoin being stolen from hardware wallet.

This fact is quite interesting today, at a time when news of Bitcoin hacking surfaces in the mainstream every week.

Perhaps this is the reason why many experts advise the crypto-enthusiasts to safeguard their holdings in cold or hardware wallets.

How are you protecting your Bitcoin from hackers? Are you blindly relying on your exchange to provide you high protection?

bitcoin-hardware-wallet, hardware-wallet-for-bitcoin
Buy hardware wallet for Bitcoin

Also Read: How Secure Are Indian Bitcoin Exchanges From Hack Attack

Bitcoin Hot Wallets Are Not Safe

There are two types of Bitcoin wallets: hot and cold.

Hot wallets are those that are connected to the internet. Cold wallets are those that aren’t connected to the internet, which makes them highly secure.

Now, there is a range of hot wallets available in the market.

1) Web wallets: Your Bitcoin (private keys) are stored on remote server. It’s very prone to cyber-attacks. This is where many exchanges save your private keys.

2) Smartphone Wallets: You download an app and store your keys in it. Again, connected to the internet, these wallets can be hacked. These days, it’s becoming relatively easier for cyber-criminals to gain access to others’ smartphones via different programs and techniques.

3) Desktop Wallet: You install a software on your desktop and store your keys there. Hackable and very unsafe!

Cold Wallets have few varieties as well.

1) Paper: Yes, you can store your Bitcoin on a paper (incredible, right?). You just write your private keys on the paper and that’s it! Needless to say, this is quite inconvenient. Besides, you’re going to have to input your private keys on another e-wallet in case if you are selling or transferring the Bitcoin.

2) USB Drive: You can choose to save your private keys on USB Drive and disconnect it from the internet for as long as you want. Indeed it looks clean. But there are few drawbacks. The biggest problem here is what if someone else gets hold of your USB stick. They can easily read your private key and steal it.

What is Bitcoin Hardware Wallet?

bitcoin-hardware-wallet, hardware-wallet-for-bitcoin
What is Bitcoin Hardware wallet?

Bitcoin Hardware wallet is a type of cold wallet that’s not connected to the internet. These hardened and advance devices pack plenty of rich features. Like wallet password and 2-step sign-in authentication.

All these features assure to keep your Bitcoin (or a range of another cryptocurrency) completely safe from hacking on hardware wallets. Of course, nothing is 100 percent foolproof. There are ways these cold storages can fail.

For example, when making a transaction, you’re going to have to eventually connect the hardware to the internet. During the transaction, a malware on your desktop can replace the recipient’s address where you’re trying to send your Bitcoin. Also, there are chances of manipulation in the hardware wallet at the production stage. (This is one reason why you should always stick to top wallet brands and always make your purchase from qualified sellers.)

Should You Buy a Bitcoin hardware wallet?

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Bitcoin Hardware Wallet Ledger

Given it matters the security of your Bitcoins, this is an important question that every investor must have had at least one over the course.

Now a good hardware can cost you around $100 or Rs 7000 (approx). Of course, purchasing it will not make any sense if you only have Bitcoin worth $50. Or even if you’re holding BTC worth of $500, investing in them doesn’t sound like a nice deal.

You should (and must) only buy Bitcoin wallet of hardware form when you’re holding a large amount of Bitcoin. How much is this “a large amount”?

The basic calculation is if your holding is worth more than 10x of the price of hardware wallet, you should definitely buy the wallet. If not, stick to reputed online wallets.

For example, if you’re holding BTC worth $1200, it’s 12 times the price of the hardware wallet. The answer is yes, you should buy it. But if you’re holding BTC worth $700, which is just 7 times the price of Bitcoin hardware, the answer is NO.

As we move forward, the danger of cyber-attacks in the crypto-world would increase seamlessly. If you have a large stock of Bitcoin, you must definitely buy Hardware wallet to stay on the safer side. You cannot let a small investment of $100 put all your Cryptocurrencies at risk of being stolen. It’s not a wise idea.
bitcoin-hardware-wallet, hardware-wallet-for-bitcoin
Bitcoin Hardware Wallet Trezor

Now there exist many good Bitcoin hardware wallet in the market.

Trezor and Ledger Nano S are two of the most popular options, highly recommended by experts and professionals. Lashed with advanced features, they both promise easy setup process and unmatched security of multiple layers. So if you want the best hardware wallet for Bitcoin, one of these 2 are what you should buy.

Trezor – Know More | Buy Now (Price: Rs 10,999)

Ledger Nano S – Know More | Buy Now (Price: Rs 8,699)

Keep your Bitcoin safe. Or you can end up losing all, just like millions of hack-victims have.

Also Read: 9 Tips To Protect Bitcoin From Hackers

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