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Is Your Hardware Wallet Really That Safe?

The Lucrative Hardware Wallet Global Market

According to a report published by Allied Market Research, the global hardware wallet market is expected to hit $1.02 billion by 2028, registering a CAGR of 24.00% from 2021 to 2028.

By 2026, the worldwide hardware wallet market will be augmented by rising demand for online transmission and storage of crypto assets, as well as increased digitization and security awareness. According to TechSci Research’s 2016–2026 report on the global hardware wallet market, connectivity (communications, USB, Bluetooth), distribution channel (online or offline), end users (capital markets, BFSI (excluding capital markets, real estate and other regions)), competition and forecasted opportunities are expected to exceed half a million by 2026 due to the growing need for security and transparency, as well as the growing demand and usage of cryptocurrencies in emerging markets globally.

As breaches and thefts in cryptocurrency hot wallets have become more widespread, the desire for cold or hardware wallets to safely store digital assets has grown. The market for cold or hardware wallets is predicted to rise because of the increasing adoption of non-custodial wallets.

Hardware Wallets Are Not As Safe As We Think

Being inaccessible via the Internet, hardware wallets are one of the safest ways to keep cryptocurrency, as we have explained in our first article. It eliminates the interaction between the wallet and the internet, lowering the risk of hacking.

However, there are also challenges associated with hardware wallets. You will need a little technical know-how to set it up, and you may not be able to recover your crypto assets if the device is lost, damaged or stolen.

Hardware wallets are also not 100% safe. In July 2020, the cryptocurrency hardware wallet manufacturer Ledger suffered a hack, but fortunately, customer funds and assets were not stolen. However, 272,000 Ledger customer’s names, email addresses and phone numbers were leaked by hackers, leaving them vulnerable to phishing attacks through emailing and text message campaigns. Hardware wallet hacks are extremely rare, but it shows that crypto owners should always be on their guard and follow the best practices for secure crypto storage. No crypto wallet is totally secure, so take these security features with a pinch of salt.

So What Should You Look For In A Hardware Wallet?

  • Crypto Coverage

The most important thing to look for is whether the hardware wallet supports the cryptocurrency you want to store. One of the key development goals for wallet providers like UKISS has been to expand the suite of supported crypto assets while retaining the same security standards.

  • Ease of Use

To get started with a new wallet, it should be simple and not require too much technical know-how. Other advantages that consumers may find appealing include Bluetooth connectivity, reconfigurable storage space, and the ability to encrypt critical information on computers.

  • The Quality Of The Chip

Most chips used by hardware wallets providers are generic chips (Microcontroller chips) which are found in common appliances like microwaves and TV remotes. However, it is recommended to avoid hardware wallets with generic chips as they are not tamper-resistant.

Conversely, some applications that need to store critical data, such as biometrics passports, use stronger chips (Secure Element chips). Only those chips are secure enough to support crypto assets. When choosing your hardware wallet, it is therefore important to check for any kind of assurance that the device meets strict standards for security threats, such as a certification by security auditors.

  • Backup And Recovery

Backups are another important aspect to crypto wallets. Is it possible to back up your wallet with your wallet provider? Is the backup protected with a password? Is there a simple and effective backup restore process?

  • Reputation Of Wallet

If you want to make sure the wallet is trustworthy, search for the wallet on internet forums such as Bitcointalk to see what your peers are saying about it. If you can’t find any feedback about it, ask in those forums if your peers have used it and what their experience was.

In general, next-generation crypto wallets appear to be products to look out for. They are more secure and have better user experience as compared to existing crypto-security solutions. Whichever wallet you choose, it is highly recommended that you consider one that offers maximum security and ease of use.

At UKISS, we strive to provide our users complete control over their crypto assets by enhancing ease and overall user experience while never jeopardizing security. The utmost level of protection for your private keys will be provided by our upcoming hardware wallet. Stay tuned for more info!