What Is a Hardware Wallet for Cryptocurrency, and Why Do You Need One?

<p>Whether you're new to cryptocurrency or have been around the block a few times, you've probably heard of hardware wallets. But what exactly are they? Why do I require a wallet to store my invisible currency? That's a good question, and the best way to answer it is to look back at a historic year in cryptocurrency.</p> <p>It's no secret that the cryptocurrency industry is plagued by fraud, cyber attacks, and theft. BadgerDAO was robbed of approximately $166 million in funds in December 2021. Days later, robbers stole approximately $208 million from BitMart. To top it all off, the largest cryptocurrency heist in history (to date) occurred only in August 2021, when Poly Network was hacked and lost a staggering $831 million in investor funds.</p> <p>Is your heart already pounding?</p> <p>What is the definition of a cryptocurrency hardware wallet?</p> <p>Hackers are a major reason why you should take precautionary measures to protect your cryptocurrency. This is why many cryptocurrency investors invest in hardware wallets.</p> <p>A hardware wallet is a physical wallet (typically the size of a USB thumbdrive) that allows you to store your cryptocurrency offline. By removing your digital currency from the internet, you increase your chances of avoiding cyber attacks in which someone steals all of your hard-earned invisible money.</p> <p>Every hardware wallet includes a public and private key. To understand what a public and private key are, think of them as a bank account.</p> <p>A public key is analogous to a bank account number. Anyone who has your public key can transfer crypto to you in the same way that you can transfer funds to your bank account. A private key is analogous to the PIN on your debit card. It's a form of security that prevents unauthorised access to your account, so don't share your PIN with anyone or leave it lying around.</p> <p>Why do you require one?</p> <p>Unfortunately, this thriving industry is not as well regulated as it should be.</p> <p>To begin, you should understand that cryp