Security is the most important and only bottom line in our field; this content is a deep interpretation of this last bottom line, including:
1) What is a hardware wallet? How much security do I actually gain when I put assets into a hardware wallet?
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, there have been continuous reports of high-profile assets being 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 0 behind it; 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 (I am mainly referring to BTC assets) here are some summaries after discussions with several wallet experts.
1️⃣ What is a hardware wallet? How much security do I actually gain when I put assets into a hardware wallet?
I believe this is the most concerning issue for everyone using hardware wallets, but in reality, most people do not have a good understanding of this. There is a common misconception that once assets enter a hardware wallet, they are absolutely safe and one can rest easy.
In fact, this is not the case; a hardware wallet does not equal 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.
A simple explanation — —
You can think of it as your safe; your wallet password is the password to the safe.
The private key is the ultimate instrument to recover this asset if your safe is lost.
So the main purpose of a hardware wallet is to provide advanced security, protecting users' private keys and sensitive data from threats such as network attacks, malware, or physical theft. It generally has the following characteristics:
1) Enhanced security:
Hardware wallets usually contain a secure chip or multiple chips, specifically designed to protect the security of private keys. The 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 could occur through 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 complete control over their private keys and funds. This aligns with the cryptocurrency community's philosophy of 'owning your private keys, owning your wealth.'
So overall, hardware wallets provide a higher level of security than software hot wallets, exchanges, or online wallets, but that does not mean that other security measures are unnecessary.
For example, in terms of asset storage, your private keys do not touch the internet, so the security is relatively higher, and in terms of signing, hardware wallets require more steps, so you may be better able to recognize scams.
But if your fundamental issue is your security habits and usage habits, you scatter your private keys everywhere, you never look at the signing content and just click with your eyes closed, 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: how much security you actually gain 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 instrument. Therefore, if we want to protect our assets, we need to:
1) Protect my private key (ultimate recovery instrument)
2) Protect my safe well
3) Protect my safe password well
The core here is still the private key; whether it is a hardware or software wallet, the most crucial part is your private key mnemonic. The security of where you store your mnemonic determines your ultimate security; you need to be aware of this.
But at the same time, 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 your acquaintance, I know where your hardware wallet is kept, I am aware of your usual password habits, and once I take your hardware wallet (safe) and crack it, you are actually in great danger.
Let's get to the conclusion first; everyone agrees that if you want to maximize security, the safest option is hardware wallets + multi-signature.
If you want to be more thorough, consider using different brands of hardware wallets + multi-signature.
For example, choose a combination of: Ledger, Trezor, Bitbox, Keystone, Coldcard — — Ledger + Keystone + Trezor; you can create a 2/3 or 3/3 multi-signature.
This method requires three hardware devices + three private keys to store assets; if you keep these three in different locations and store them properly, it is very difficult for others to access them simultaneously; the possibility of theft is minimal.
Other methods, such as the shard mnemonic feature introduced by @KeystoneWallet, are also worth researching if you are interested; I think its security is also great. It divides the mnemonic into multiple parts, and each part cannot individually restore the wallet; only when these parts are correctly combined can the wallet be rebuilt.
It's equivalent to a wallet completing multi-signature:
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 forever secure, because human vulnerabilities cannot be predicted.
So here, opinions may vary; currently, we have seen cases of successful hacks, including Trezor, onekey, coldlar, imtoken mobile, bitcoin wallet.dat.
Ledger is considered the biggest brand in the industry, and its updates and security are among the best, but the Ledger system is closed-source, so no one has claimed to have cracked Ledger's password system; but the problem lies in its closed-source nature; with a closed-source system, you will always fear the possibility of internal malice.
4️⃣ Ultimate security recommendations for hardware wallets
Regarding security, I would like to offer some advice:
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 the password to your safe (hardware wallet); whether this safe is a phone, bank app, hardware wallet, or software wallet.
3) Try to choose secure chips that can protect against physical attacks: some high-end hardware wallets may also have tamper-proof features that can automatically destroy private keys or prevent transactions when physical attacks are detected.
4) Most importantly, where you store your private keys should not be known to anyone; or you should store them using multi-signature; or you should encrypt your private keys again.
In summary: security is no small matter, do not be afraid of trouble; I hope everyone can make money while keeping their wealth safe 💰#BabyMarvin_f9c7值得期待并持有
