[(Cold Wallet) Uses of Hardware Wallets]

A hardware wallet (cold wallet) is a physical device used to securely store the private keys of cryptocurrencies. Unlike software wallets or online wallets, hardware wallets store private keys in offline devices, thus providing greater security. Here are the main uses and advantages of hardware wallets:

1. Secure storage of cryptocurrencies

Private key protection: Hardware wallets store private keys in an encrypted chip inside the device, which is never exposed to an Internet environment, avoiding the risk of hackers stealing through the Internet.

Preventing phishing attacks: Hardware wallets prevent phishing attacks because users confirm transactions on the device, ensuring the authenticity of the transaction and cannot be tampered with by malware or fake websites.

Free from computer virus infection: Hardware wallets are independent of computers or mobile phones, so they are not threatened by viruses, malware or ransomware.

2. Conduct cryptocurrency transactions

Offline signing: Users can sign transactions offline on the hardware wallet without exposing private keys to the Internet environment. In this way, transactions can still be broadcast to the blockchain network.

Support multiple cryptocurrencies: Most hardware wallets support multiple cryptocurrencies (such as Bitcoin, Ethereum, Dogecoin, Litecoin, etc.), allowing users to manage different assets on one device.

3. Long-term storage and investment

Long-term custody: Hardware wallets are ideal for investors who intend to hold cryptocurrencies for a long time.

Cold wallet: Hardware wallets are essentially cold wallets, meaning that private keys are stored completely offline, reducing any risk of being connected to the Internet.

4. Support for multi-signatures (Multisig)

Enhanced security: Some hardware wallets support multi-signature functions, which can require multiple private keys to sign transactions, making asset management more secure and flexible. This is an important security feature for corporate users or high-net-worth individuals.

Asset control: The multi-signature function can be used to set asset control permissions for a family or business, for example, requiring at least two or more authorizations to make large transfers.