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Glossary entry

Hardware Wallet

wallets

What a hardware wallet is, how offline key storage and on-device signing work, and which risks a hardware device does not remove.

Definition

A hardware wallet is a dedicated physical device that stores your private keys offline and signs transactions inside its own secure chip, so the keys never touch an internet-connected computer. You connect it by USB, Bluetooth or QR code, review the transaction details on the device screen, and confirm with a button press, which means malware on the host machine can request a signature but cannot extract the key. Hardware wallets are the most common form of cold storage for long-term holdings. They do not remove every risk: a tampered or counterfeit device, a leaked recovery phrase, or approving a malicious transaction shown on screen can still cause loss. Buy only from the manufacturer, verify the device during setup, and store the recovery phrase separately from the device itself.

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