Q: What is a hardware wallet?
A hardware wallet is a physical device designed to securely store the private keys that control cryptocurrency funds. Unlike software wallets, hardware wallets keep private keys offline, minimizing exposure to malware and remote attackers. They typically require a PIN for access and often provide a recovery seed for backup. Because private keys never leave the device during normal operation, a hardware wallet significantly reduces the attack surface for theft of funds.
Q: How does signing on a hardware device work?
Signing is the process by which the device uses your private key to cryptographically approve a transaction or authentication. When a transaction is initiated, the transaction data is sent to the hardware device. The device displays the transaction details — such as the recipient address and amount — and asks the user to confirm. Only after the user physically confirms on the device will it use the private key to sign the transaction. The signed transaction is then returned to the host and broadcast to the network. This flow ensures that even if the host computer is compromised, the attacker cannot sign transactions without physical confirmation on the device.
Q: Can I recover my funds if I lose my device?
Yes. If you securely backed up your recovery seed when you initialized the device, you can recover your funds on another compatible hardware wallet or software wallet that accepts the same recovery standard (e.g., BIP39). The recovery seed is the authoritative source of your wallet's private keys. Always ensure that recovery seeds are stored securely and offline. If you did not create a recovery seed or lost it, recovery may be impossible; this is why backup is essential.
Q: What happens if someone requests my recovery seed?
Never share your recovery seed. No legitimate support team will ask for it. If someone requests it, they are attempting to steal your funds. Cease communication and report the incident immediately. If you suspect the seed has been compromised, move your funds to a new wallet with a new seed as soon as possible.
Q: How should I store my recovery seed?
Write it down on paper and store it in a secure location like a safe. Consider multiple geographically separated copies, but avoid storing copies in the cloud or taking photos of the seed. Metal backups designed to survive fire and water are a good option for long-term physical durability. Use common-sense protections: do not share copies and minimize the number of people who know the storage location.
Q: Is firmware update necessary?
Regularly updating firmware ensures you receive security patches and improvements. Only update firmware from the official vendor and follow the documented update process. Avoid firmware files from third-party sources, and verify signatures where possible. Some users prefer to delay updates until reading community feedback, but critical security patches should be applied promptly.
Q: Is my email or login tied to my device?
Login credentials are typically tied to a service or account that manages user settings and convenience features. The device itself holds your private keys; the login often provides access to an online interface or cloud-synced preferences. Do not confuse the two: losing access to an online account does not necessarily mean loss of funds if you have your recovery seed. Conversely, losing your device without a seed backup can result in permanent loss of funds.
Q: What about phishing and fake websites?
Phishing attacks attempt to trick you into entering credentials or revealing recovery seeds on malicious websites. Always verify the URL of the service you are visiting and consider bookmarking the official login page. Use browser extensions, official mobile apps, or hardware authentication whenever supported to reduce risk. If a page is asking for your recovery seed or other sensitive information, treat it as suspicious.
Q: How do I enable two-factor authentication (2FA)?
Many services offer 2FA through TOTP apps (like Google Authenticator or Authy), hardware security keys, or SMS. Prefer authenticator apps or hardware keys over SMS due to SIM-swapping risks. Follow the service's instructions to link a 2FA method to your account and store backup codes safely. For hardware-based 2FA, you may need to register the device and confirm hardware prompts during setup.
Q: Are there recovery options if 2FA is lost?
Services commonly provide recovery codes or backup methods at the time of enabling 2FA. Save recovery codes in a secure location. Some services allow secondary recovery options such as alternative email or phone verification, but these may be weaker security methods. Plan ahead with multiple secure recovery options if the service supports them.