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 more secure? What is the safest way to store assets?
3) What hardware wallets on the market are safer and more user-friendly?
4) Ultimate security advice for hardware wallets!
Recently, there have been continuous reports of high-profile asset phishing and theft; which has raised 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 after it; because if security is not done well, no matter how much money you make, it may vanish one day;
So how exactly should you save your assets (here I mainly refer to BTC assets) below are some points summarized after discussions with several experts in the wallet field;
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; there is a common misconception that 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 does not equal absolute security!
First, you need to understand the essence of a hardware wallet; it is a physical device used for storing cryptocurrency and other digital assets.
Let me explain in simple terms — —
You can understand it as your safe; your wallet password is the password to the safe;
The private key is the ultimate tool for recovering this asset if your safe is lost;
So the main purpose of a hardware wallet is to provide high-level security, protecting users' private keys and sensitive data from threats such as network attacks, malware, or physical theft; it typically has these features:
1) Enhanced security:
Hardware wallets typically include a secure chip or multiple chips, specifically designed to protect the security of private keys. The private key never leaves the device unless the user explicitly authorizes a transaction.
2) Offline storage:
Such wallets typically operate 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 needs to be made.
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 philosophy of 'holding your own private keys means holding your own wealth.'
So overall, hardware wallets provide a higher level of security than software hot wallets, exchanges, or online wallets, but this does not mean that other security measures are unnecessary.
For example, regarding asset storage, your private key does not touch the internet, so security is relatively higher; in terms of signing, hardware wallets require more steps, so you may be better able to identify scams;
But if the essential issue is your security habits and usage habits, where you randomly place your private keys and never look at the signing content while blindly clicking, then your security has nothing to do with whether or not you use a hardware wallet; you are in an insecure state.
So to put it simply, how much security you actually increase when you put assets into a hardware wallet depends on your usage habits, not on the hardware wallet itself;
2️⃣ Is a hardware wallet secure, or is multi-signature more secure? 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 (ultimate recovery tool)
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 core is your private key mnemonic; the security of where you store the mnemonic determines your ultimate security; you need to know this;
But at the same time, your safe is also very important, regardless of whether this safe is a phone, bank app, hardware wallet, or software wallet; you need to protect your safe;
However, many people overlook this point, thinking that losing the safe (hardware wallet) is actually not a big deal; imagine a scenario where I am your acquaintance, I know where your hardware wallet is, I know your common password habits; once I take your hardware wallet (safe) and then crack it, you are actually in great danger;
Let's state the conclusion first, everyone agrees that if security needs to be taken to the extreme, the safest option is hardware wallet + multi-signature;
If you want to be more extreme, use different brands of hardware wallets + multi-signatures;
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 these three are stored in different locations and stored properly, it will be very difficult for others to access them simultaneously; the possibility of theft is minimized;
Other methods, such as the shard mnemonic feature launched by @KeystoneWallet, are also worth researching if you're interested; I think the security is great, as it divides the mnemonic into multiple parts, and each part cannot restore the wallet alone; only when these parts are correctly combined can the wallet be rebuilt.
Equivalent to a wallet completing a multi-signature:
3️⃣ What hardware wallets on the market are safer and more user-friendly?
This is also a point of concern for everyone, but still, as I said: there is no device or system that is forever secure because the vulnerabilities of human nature are unpredictable;
So here it's really a matter of personal opinion; currently, we have cases of cracking by technical experts, including Trezor, onekey, coldlar, imtoken mobile, Bitcoin wallet.dat;
Ledger is considered the largest brand in the industry, excelling in updates and security; however, the Ledger system is closed-source, so no one has claimed to have cracked Ledger's password system; but the problem also lies in its closed-source nature, as you can never be sure if they might do something malicious internally.
4️⃣ Ultimate security advice for hardware wallets
Regarding security, I have some suggestions for everyone:
1) No matter 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; regardless of 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 feature anti-tamper characteristics, able to automatically destroy private keys or prevent transactions when detecting a physical attack.
4) Most importantly, where you store your private key should not be known to anyone; either you keep it in multi-signature storage; or you encrypt your private key once more;
In summary: security is no small matter; do not be afraid of trouble; I hope everyone can make money while also keeping their wealth safe 💰#BabyMarvin_f9c7值得期待并持有
