Glossary
Hardware Wallet
16/04/2026
A hardware wallet is a physical device that stores private keys offline, isolated from the internet. Transactions are signed inside the device and never expose the private key to a connected computer — even if the computer is compromised.
How it works
- The device generates and stores private keys in a secure chip
- When you want to send a transaction, it is sent to the device for signing
- The signed transaction is returned to the computer and broadcast to the network
- The private key never leaves the device
Hardware wallet vs. software wallet
| Property | Hardware wallet | Software wallet |
|---|---|---|
| Private key storage | Offline (secure chip) | Online (on device) |
| Malware resistance | High | Low |
| Convenience | Lower | High |
| Cost | $50–$200 | Free |
| Best for | Long-term storage | Daily use |
Popular hardware wallets
- Ledger (Nano S Plus, Nano X, Flex)
- Trezor (Model One, Model T, Safe 3)
- Coldcard (Bitcoin-only, advanced security)
Relevance to miners
Miners accumulate crypto over time and often prefer hardware wallets for storing large balances. Payouts from a pool can go to a software wallet for convenience; larger amounts can then be moved to a hardware wallet for long-term cold storage.
