Knowing more about hardware wallets

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Ledger钱包 is a hardware wallet and it comes with a variety of advantages:

  • The private keys will not be exposed to the computer
  • The hardware tends to be immune to the computer virus
  • The hardware has to confirm whatever transaction that is happening on your device and not the app that is on your computer before coins can be spent.
  • Majority of the hardware tend to be encrypted with the # pins like the debit card that you have, adding another security layer.
  • The company of the hardware software normally open source thus allowing users to be able to validate the whole operation of the device.
  • The hardware wallets are known to host various cryptocurrencies.

The main downside of the hardware wallets tend to be that, you will have to use money. If it is an issue, turning on your USB to become a makeshift cold wallet for the Electrum LTC, an option that is viable. But it might be worthwhile considering having to invest in a hardware wallet as they are known to be more secure especially if the coins are many.

If unknowingly you download a virus on your computer, when opening the Electrum, the app is susceptible to the malware just like any other software that you might have on your desktop. It means that, you coins will be at risk as your private keys will be exposed.

The following are two ways of how the hackers will end up stealing your coins.

  • If you have a wallet which is not encrypted they can utilize a particular command to send to your LTC to another address when you open the Electrum.
  • They can decide to watch after recording your screen, thereby being able to see if by accident reveal the private keys on the screen. Once this is seen, then your LTC can be stolen by having to import them.

But if you own a hardware wallet, then you risk neither of the two.

What are hardware wallets?

The hardware wallets are devices which are programmed securely, storing private keys and not being able to reveal them. It is a feature that is important as you have to use the private keys to sign into your transaction and recovering of your address. The hardware wallets are considered also as cold wallets as they are normally not connected to the internet when you are not using them.

How they work

This can be checked by knowing how the Trezor and ledger wallets work as they are the two common companies and reputable for hardware wallets. Initially, the hardware is able to create and environment that is isolated, keeping the private keys very safe on a chip that is secure. Then when you want them to be send to the TLC, the hardware wallet has to be plugged in via the USB port that is found on your computer. Next thing is that, you will have to open a specific app from the company for managing the coins.

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