21 BTCHardware wallet
A hardware wallet is a small device that keeps your private keys offline and signs transactions inside itself. Even if your computer is infected, the keys never leave the device.
Short definition
A dedicated device that keeps keys offline and signs transactions.
How it works
Your phone or computer prepares an unsigned transaction (often as a PSBT), the device shows the amount and address on its own screen, and you confirm with a button. Only the signature goes back. Always check the address on the device screen, not on the computer.
Some devices are Air-gapped, passing data by QR code or microSD instead of USB. Bitcoin-only firmware has less code and a smaller attack surface.
Devices on this site
Compared on the Wallets page with prices and sources: Trezor, Ledger, Coldcard, BitBox02, Foundation Passport, Blockstream Jade, Keystone, Bitkey and the DIY SeedSigner.
See also
- Seed phraseA seed phrase is a list of 12 or 24 ordinary words that can recreate all the keys of a wallet. Whoever has the words has the bitcoin, so write them on paper or metal and never type them into a website.
- Hot / cold walletHot: keys on an internet-connected device. Cold: keys kept offline.
- MultisigMultisig means a payment needs several keys out of a set, for example any 2 of 3. Losing one key, or having one stolen, does not lose the coins.
- PSBTPartially Signed Bitcoin Transaction: a standard file format to pass a transaction between wallets for signing.
- Air-gappedA device that never connects to a computer by cable or network; data moves by QR code or SD card.
References
- Bitcoin Wiki: Hardware wallet en.bitcoin.it