BitCoin Hardware Wallet

BitCoin Crypto-currency Hardware Wallet

Overview

The economy of Zimbabwe  has long been plagued by various troubles which hopefully someday will be fixed. In the same wake many business people and enthusiasts who want to keep up with the global village have since started meddling with the famous BitCoin currency which proves to be sweeping over the whole world with much force and little resistance. Much has been preached by local and international Internet evangelists from “What is Bitcoin currency” to “How to deal in BitCoin currency” and many other exciting topics.

It is difficult to completely ignore this new currency since it proves not restricted by borders and dimmed very secure – at least for now maybe. Many well-to-do and recognized companies are already accepting BitCoin for payment on-line suggesting its implementation world-wide. In some countries, governing laws have already started emerging and exchange rates are starting to show up against major currencies.

If you finally find yourself swallowed up in the cyptocurrency frenzy and you are still paranoid about security, then you should consider understanding the different available options for BitCoin wallet / purse. Storing and securing your Digital currency security keys can be quite challenging if not scary especially noticing a recent spate of Ransomware Crypto-viruses and hacks. One can simple loose the keys to hackers or some other way. The available options are as follows:

Bitcoin paper wallet reffers to cryptographic keys generated online, printed on paper in the form of Qr bar code and safely stored away for later use. The same is then used to link the account. The paper can be scanned any-time the owner wants to transact.

Online wallets were the first to be introduced along with the crypto-currency when it was developed. They are still widely used to store bitcoins pretty well if they are not hacked. This allows the bitcoin exchanges or merchants to store bitcoins on your behalf on-line. On this platfoam an individual will access his account on-line and transact through the same website. Blockchain and coinpayments are among some of the popular on-line wallets

Desktop wallet is client software which is downloadable an installed on a Personal Computer or Tablet. It is then used to store crpto keys and for transacting.

Mobile wallet is more or less similar to Desktop wallet. It is installed on mobile phones and archives the same.

Hardware wallet is a specialized, small and portable computer device in the form of USB dongles. Hardware wallets are considered to be the most secured wallets since  bitcoin keys are not stores stay in a software that can be whipped or on-line where they can be hacked, they generate offline keys

Pros and Cons of using hardware wallet

Hardware wallet pros

  • Easy to Set up And Use
  • Secondary Recovery Mechanisms
  • Multi factor Authentication
  • Compatibility with multiple operating systems and Major Crypto Currencies
  • Open source software
  • Portable
  • Can be locked remotely
  • Secure (Keys stored on a chip)

Hardware wallet cons

  • Swapping of Recipient Address (hijacked by malware)
  • Some wallets can not store different kinds of cryptocurrencies
  • Compromised Firmware (in the worst case of using malware firmware)
  • No shared responsibility in the case it’s stolen or compromised

Summary

In general, security keys are the main thing which is stored in all the listed wallets and all options have their own weaknesses and strengths. The hardware wallet is by far the most secure though not as conveniently usable as the mobile wallet. Remember that if you loose your security keys, you loose access to your money though hardware wallets have other ways of restoring access. Make sure you understand and list all your requirements before buying one. Do a quick search to ascertain if all your needs will be addressed by the solution. So go ahead and buy yourself one.

Popular brands include: Ledger, Trezor, KeepKey, Digital BitBox, Blockchain

Edit :

Found this article on www.investinblockchain.com quite helpful and more detailed. Another comprehensive and subtly crafted guide for beginners can be found on kingpassive.com

 

1 thought on “BitCoin Hardware Wallet

  1. Hellooo there,
    Just reaching out because of your page here: http://www.prosngurus.com/bitcoin-hardware-wallet/
    You linked to a Wikipedia page explaining what Bitcoin is, and it was one of the first articles I read on crypto. I’ve been hooked ever since so I wanted to thank you for pointing me to it. 🙂 It actually inspired us to create a MUCH better version of that Wikipedia article, and we’re super proud of it. (It’s here: https://www.investinblockchain.com/what-is-bitcoin/)

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