How to Transfer Crypto to a Hardware Wallet and the Risks Involved

Security is paramount in general, but we have to be more secure when it comes to cryptocurrencies. Because digital assets are growing, there is a need for a secure storage solution, and that is where hardware wallets come into play.

A hardware wallet well is a physical device designed to store your cryptocurrencies securely. Such a wallet provides an extra layer of protection against potential threats, including hacking attempts or Malware.

Working principles of a hardware wallet 

If we go by the technical aspect, all hardware wallets are hardware security modules designed for the cryptocurrency market. A hardware wallet is a device that functions as secure storage for crypto. 

If you want to understand the working principle of such a device, think of it as an external physical device that operates on your unique pin code to validate that you are indeed the initiator of the transaction. 

Source

The PIN code of a hardware wallet is called a private key stored on special microprocessors. 

The microprocessors are also called SE, which stands for Secure Elements. They are much more complicated than the regular ones because they use ciphered memory and physical support to avoid attack and access to the private keys within the wallet.

Also, microprocessors usually have an operating system that is in use to manage the processing environment. This adds another security level for further ciphering. 

Why is there a need for hardware wallets?

We are going forward to the digital era, and digital currency is gaining popularity. Things changed permanently when the first Bitcoin was launched in 2009, and since then, digital coins have been making waves.

Remember, when discussing safeguarding cryptocurrencies, relying solely on software wallets or exchanges is never a good idea. Because these may leave your digital assets vulnerable to various risks. 

Hardware wallets are brilliant because they offer a more secure solution to keep your private keys offline. Because your Private keys are only essential codes that grant access to your cryptocurrency holdings to enable transactions, keeping them secure is important. 

When keys are available offline, they are safe from online threats. Here are more reasons why you need a hardware wallet.

Guaranteed security

Hardware wallets are amazing because they offer the highest level of security for storing your cryptocurrency. They protect against Cyber threats, including hacking attempts, viruses, and malware. 

Easy-to-understand interface

These wallets offer excellent security features, and yet they are so user-friendly. The interface is usually easy to understand, and both beginners and well-experienced users can benefit from it. The display is also straightforward to understand. With these wallets, managing your cryptocurrencies becomes a hassle-free experience.

Versatility and compatibility

You should go for the Hardware wallets because they support multiple cryptocurrencies. This makes them versatile storage solutions. It doesn’t matter whether you hold Bitcoin, Ethereum, or a range of altcoins; these wallets can accommodate various digital assets. 

Another good news is that these wallets are compatible with multiple operating systems. And this is all the flexibility you need to manage your Crypto portfolio.

Backup and recovery

When you set up a hardware wallet for your cryptocurrency, they usually provide a recovery seed or mnemonic phrase during the setup process. This recovery SEED or phrase acts as a backup that you can use to restore your good wallet and access your funds in case it is compromised. 

All you need to do is be careful with the protection of this recovery seed so you can always recover your cryptocurrency holdings.

Multi-signature support

Hardware wallets are ideal because they support multi-signature transactions. This means they require multiple private key signatures to authorise a transaction. This feature alone is helpful for people with joint accounts or businesses because it enhances security by preventing unauthorised transactions.

How to choose a hardware wallet for your cryptocurrencies – which factors should you consider

You will find many hardware wallets online, but it is important to consider some factors before choosing to go with anyone. We have some tips for you

Choose budget-friendly over expensive

There is no such thing as guaranteed security with expensive hardware wallets for Crypto. Therefore always choose a wallet that lies within your budget. An average wallet can cost you anywhere between $50 to $400. Make sure you choose the one that is good according to your portfolio. 

It is important to remember that cheap wallets may have fewer features and small screens. On the other hand, you can get a sleek design and touch screens with expensive wallets. The security features also vary.

Choose a secure wallet

You cannot say which hardware wallet is more secure at face value, but some proven security features can guide you in the right direction. Make sure you go with a hardware wallet that offers pin code protection, passphrase protection, and secure chip elements to prevent you from cyber attacks or hacking.

Choose the one that supports your coins

Not all hardware wallets are created equal. You may not be into famous Crypto coins, but you can still select a wallet that supports only these coins. Go with a hardware wallet that supports different types of cryptocurrencies and coins — choose one that supports NFT, like Ledger Nano X or Trenzor Model T.

Choose compatibility

Ensure you use a hardware wallet compatible with your mobile phone, computer, or MetaMask. Remember, not all wallets are compatible with mobile phones or software wallets. 

The brand is important

You don’t have to depend on a brand’s online reputation to choose for yourself, but choosing a hardware wallet with a good online reputation is essential. You can read user reviews and experiences to decide for yourself.

Security features you should look forward to in a hardware wallet

A secure hardware wallet will give you more security features; we list some here. 

• Secure chip element – it is very important to consider when choosing a hardware wallet for yourself. When there are secure chips, they protect your wallets from physical tempering and unauthorised access to your private keys. 
• Multi-factor authentication. If you do not want any unwarranted access to your wallet, then make sure you go with the one with Multi-factor authentication. It can be anything ranging from a PIN code, biometric authentication, and passphrase to create robust security.
• Firmware updates – updates are crucial, and the latest is everything today. Go with a wallet with all the right Firmware updates. Remember, the correct update can fix potential security breaches and keep the device user-friendly.
• Multi-signature and air gap. Choosing an external wallet with the air gap feature means choosing something completely closed-off from external networks and devices, including Bluetooth, Wifi, NFC, and USB connections. This makes it all the more secure. On the same grounds, the multi-signature feature keeps the hardware wallet more secure.

How to set up a hardware wallet like a pro

No rocket science is involved in setting up a hardware wallet for your crypto coins. Just make sure you follow these steps.

Buy a hardware wallet from a reputable source. 

It is important to buy your hardware wallet from a reputable source. You will see common scams related to wallets that are preloaded with viruses.

Set up the software

All hardware wallets have custom software that helps with setting up your device. The software will help you with your crypto assets. Once you have your wallet, plug the USB cable into your device and PC.

When you plug in the USB cable, it will light up, and you will see a prompt that will take you to the live site of the manufacturer. For instance, if you choose ledger, you will see such an interface when you plug in. Here are some wallets with their software.

• Ledger – Ledger Live (desktop)
• Trezor – Trezor Suite (desktop)
• Ngrave – Ngrvae Liquid App (mobile)
• Keystone – Keystone Hardware Wallet App (mobile)
• BitBox – BitBoxApp (mobile)

Set up the pin code and recovery phase and confirm it

Once you are on the live site of the hardware wallet manufacturer, you will be asked to set up a wallet. The prompt will eventually take you to the pin code, which is the main deal. Set it up and make sure you write it in many different places. 

Then you will be asked to set up a 24-word recovery phrase offline. Ensure that you write your recovery phrase down in several places. Once you develop the pin code or recovery phrase, you need to confirm it. 

Your recovery phrase and pin code is the key to your hardware wallet. If you lose it, you lose your wallet and your coins.

Transfer crypto

Once everything is set up, you must locate the option to receive or deposit the crypto coins. For instance, you can copy the public address displayed or scan the QR code to add the crypto from the exchange or soft wallets.

How to use your hardware wallet 

Now that you have set up your hardware wallet, it is time to use it. We will tell you how you can use it with these easy steps.

Unlock it 

Unlocking is the first key to using your hardware wallet. You must enter your pin code or passphrase to unlock the wallet.  

Once your hardware wallet is unlocked, you can use it for storage and sending and receiving crypto assets.

Send crypto assets 

Now that you have the wallet at your disposal, you need to enhance your portfolio, and for that, you need to buy crypto coins.

There are two ways to do this:

• You can buy assets using a separate wallet, and then you can send them to your hardware wallet
• You can buy assets directly through your hardware wallet

If you choose option 1, you must either set up a software wallet like MetaMask or use two hardware wallets. 

If you like the second idea, you can send cryptocurrency directly to your hardware wallet from MetaMask or an exchange like Coinbase without connecting your hardware wallet to anything.

Use it for storage until cash out 

The main use of hardware wallets is to keep your crypto secure. Once your crypto is in your wallet, it will remain until you’re ready to sell or cash them out.

Choose PureVPN for crypto transactions

PureVPN is a brilliant option to secure crypto transactions in a hardware wallet. 

• PureVPN offers a global network of servers which are 6500 in numbers in 70+ countries.
• With PureVPN, you can leave no traces of your activities on the hardware wallet, which is good for the safety and privacy of your crypto funds.
• Along with PureVPN, you can use PureEncrypt and PureKeep to manage your internet experience safely.
• Plus, PureVPN’s strict no-logs policy ensures that it won’t view your crypto transactions. 

Whether buying, selling, or just storing your crypto in a hardware wallet, PureVPN ensures that your journey into the crypto world remains smooth, safe, and completely private. 

Conclusion

Online storage is vulnerable to attacks. You can secure cryptocurrency with hardware wallets. Make sure you follow our guide to have everything under control. Remember, it is always better to do your research before investing.

Frequently Asked Questions