Hardware wallets are widely accepted to be the safest way to store cryptocurrency, but they are not all the same. There are even some out there that claim to be hardware wallets when all they are are encrypted usb drives.
One of the key vulnerabilities that one has to be aware of when transacting/storing cryptocurrency is the potential for a keylogger or other malware on your computer being able to capture your recovery seed words when you type them. Try to never type them and definitely never store them in any digital file, you are only asking for trouble. Hackers cannot touch a Pen and Paper, keep your seed words locked away in a waterproof container written down. Never a digital file.
One of our team members took his recovery words and divided them into 3 parts, then stamped them into metal plates. Whatever you choose to do, don’t lose them.
General Recommendations when buying a Hardware Wallet
- Purchase your Hardware Wallet directly from the Manufacturer, not a Third Party – This minimizes the possibility that someone might tamper with it between you and the factory (Man in the Middle Attack).
- Upon receipt, inspect the factory packaging to ensure that the tamperproof seals have not been damaged, if damaged, send it back.
- When setting up your Hardware wallet, you will be presented with a multiword Mnemonic phrase, you need to write this down with pen and paper, storing multiple copies in safe places. If you lose these words, you may lose access to your crypto which is generally viewed as a bad thing.
Our Two Hardware Wallet Recommendations (Click on Image for Link)