private keys<\/strong>\u00a0in a secure manner.<\/p>\nThe main benefit of hardware wallets over software wallets is that the private keys remain on the device. In other words: they’re never exposed to a machine connected to the internet.<\/p>\n
While both hardware and software wallets protect users from centralized attacks and from giving away custody, a hardware wallet provides an extra layer of protection. Namely, it makes your wallet invulnerable to even more attack vectors: keyloggers, clipboard monitor malware, someone getting access to your PC, programs that can read browser extensions’ information, etc.<\/p>\n
Note that a software self-custodial wallet is susceptible to all of these.<\/p>\n
By using a hardware wallet, you gain total ownership over the assets protected by your private key and<\/strong> the private key is stored in a secure, encrypted, offline environment in which nobody but you has access to.<\/p>\n<\/span>Managing The Private Keys<\/span><\/h2>\nWhen you first turn on the device, a 24 word seed phrase<\/strong> will be generated.<\/p>\nKnowing this list of words gives you control over your private keys, and thus over the addresses.<\/p>\n
So make sure to write them down because these 24 words represent your ownership of your assets.<\/strong><\/p>\nHardware wallet providers usually have a native app you can download. However, you can\u2019t really make any transactions without your private keys<\/strong>, or in other words, without the device.<\/p>\nFor example, if you want to send $BTC, you can input the destination address but it won\u2019t be sent until you confirm the transaction on the hardware wallet itself. Or the technically correct way of saying this: the coins won\u2019t be sent until you\u00a0sign the transaction<\/strong>\u00a0using your\u00a0private key\u00a0<\/strong>(which is stored securely, offline, and encrypted on the device).<\/p>\nBasically, the device has the authority over confirming transactions.<\/p>\n