Security is the most important and only bottom line in our field; this article is a deep interpretation of this last bottom line, including:
1) What is a hardware wallet? When I put assets into a hardware wallet, how much security am I actually increasing?
2) Is a hardware wallet secure, or is multi-signature security better? What is the safest way to store assets?
3) Which hardware wallets on the market are safer and easier to use?
4) Ultimate security recommendations for hardware wallets!
Recently, many big players have had their assets phished and stolen, raising our awareness of asset storage and security;
Security is the most important and only bottom line in our field; security is 1, and everything else is the 0s after 1; because if security is not done well, no matter how much money you make, it may vanish one day;
So how to save your assets (here I mainly refer to BTC assets), here are some insights summarized after discussions with several major figures in the wallet space;
1️⃣ What is a hardware wallet? When I put assets into a hardware wallet, how much security am I actually increasing?
I believe this is the most concerning issue for all friends using hardware wallets, but in reality, most people do not have a good understanding of this point. There is a common misconception: many people think that once assets enter a hardware wallet, they are absolutely safe and can rest easy;
In fact, this is not the case; a hardware wallet is not equivalent to absolute security!
First, you need to understand the essence of a hardware wallet; it is a physical device used to store cryptocurrencies and other digital assets.
Explain it in simple terms — —
You can think of it as your safe; your wallet password is the password to the safe;
The private key is the ultimate tool for recovering your assets if your safe is lost;
The main purpose of a hardware wallet is to provide advanced security to protect users' private keys and sensitive data from threats such as network attacks, malware, or physical theft. It generally has the following features:
1) Enhanced security:
Hardware wallets typically include a security chip or multiple chips designed specifically to protect the security of private keys. Private keys never leave the device unless the user explicitly authorizes a transaction.
2) Offline storage:
This type of wallet usually operates in an offline state, greatly reducing the risk of attacks that may occur over the internet. The wallet only connects to the network when a transaction is needed.
3) User control: Unlike online wallets or trading platforms, hardware wallets allow users to have complete control over their private keys and funds. This aligns with the cryptocurrency community's belief of 'holding your own private keys, owning your wealth.'
So, overall, hardware wallets provide a higher level of security compared to software hot wallets, exchanges, or online wallets, but this does not mean that other security measures are unnecessary.
For example, in terms of asset storage, your private key does not touch the internet, so the security is relatively higher. In terms of signing, hardware wallets require more steps, so you may be able to better recognize scams;
However, if the fundamental issue is your security habits and usage habits, if your private keys are scattered all over and you never check the signature content when signing, then your security has nothing to do with whether you use a hardware wallet; you are in an insecure state.
So, to put it simply, I want to say: the amount of security you increase when you put assets into a hardware wallet depends on your usage habits, not the hardware wallet itself;
2️⃣ Is a hardware wallet secure, or is multi-signature security better? What is the safest way to store assets?
First, as mentioned earlier, our hardware wallet is a safe, the password is the key, and the private key is the ultimate recovery tool. Therefore, to protect our assets, we need to:
1) Protect my private key (the ultimate tool) well
2) Protect my safe well
3) Protect my safe password well
The core here is still the private key; regardless of whether it is a hardware or software wallet, the most critical part is your private key mnemonic. The security of where you store the mnemonic determines your final security; you need to understand this;
But your safe is also very important; whether this safe is a phone, bank app, hardware wallet, or software wallet; you need to protect your safe well;
However, many people overlook this point, thinking that losing the safe (hardware wallet) is not a big deal. Imagine a scenario where I am an acquaintance of yours; I know where your hardware wallet is, I know your common password habits. Once I take your hardware wallet (safe) and crack it, you are actually in great danger;
Let's state the conclusion first; everyone agrees that if security is to be maximized, the safest option is hardware wallet + multi-signature;
If you want to take it a step further, consider different brands of hardware wallets + multi-signature;
For example, choose a combination of: Ledger, Trezor, Bitbox, Keystone, Coldcard — — Ledger + Keystone + Trezor; you can create 2/3 or 3/3 multi-signatures;
With this method, you need three hardware devices + three private keys to store assets. If you store these three in different locations and do it properly, it will be very difficult for others to access them simultaneously; the possibility of theft is minimized;
Other methods, such as @KeystoneWallet's shard mnemonic function, are worth researching if you're interested; I think the security is also excellent. It divides the mnemonic into multiple parts, and each part alone cannot recover the wallet. Only when these parts are correctly combined can the wallet be rebuilt.
Equivalent to a wallet completing multi-signatures:
3️⃣ Which hardware wallets on the market are safer and easier to use?
This is also a point of concern for everyone, but as I said, there is no device or system that is always secure because human vulnerabilities are unpredictable;
So here it is subjective; currently, we have renowned hackers with cases involving Trezor, OneKey, Coldlar, ImToken mobile, and Bitcoin wallet.dat;
Ledger is considered the largest brand in the industry, and its updates and security are among the best. However, the Ledger system is closed source, so no one currently claims to have cracked Ledger's password system; but the problem lies in its closed source nature, as you can never be sure if they might do something malicious internally;
4️⃣ Ultimate security recommendations for hardware wallets
Regarding security, here are some suggestions:
1) Regardless of what safe (hardware wallet device) you use, do not let anyone know where your safe is;
2) Do not let anyone know your safe (hardware wallet) password; whether this safe is a phone, bank app, hardware wallet, or software wallet;
3) Try to choose a secure chip that can protect against physical attacks: some high-end hardware wallets may also have anti-tamper features that can automatically destroy private keys or prevent transactions when a physical attack is detected.
4) Most importantly, do not let anyone know where you store your private keys; either use multi-signature storage or encrypt your private key again;
In summary: security is no small matter; do not be afraid of trouble; I hope everyone can make money while also keeping their wealth 💰#BabyMarvin_f9c7值得期待并持有
