A hardware wallet is an offline physical cryptocurrency wallet that heavily emphasises the security of private keys. Hardware-based cold storage is generally considered more secure than software-based hot wallets because it keeps the private keys of a digital wallet completely offline and isolated from any other form of connectivity. This significantly reduces the chances of malicious attacks, such as hacking, or even a data leak.
Hardware wallets allow users to have full ownership and control over their private keys, and users can sign transactions without having the private keys leave the device. However, if a user loses their wallet, they can still use its seed phrase to recover access to their assets.
Note, however, that hardware wallets are relatively expensive compared to other storage solutions, and the setup process may be fairly difficult for beginners. Additionally, hardware wallets are noticeably less convenient for daily transactions, as they need to be physically plugged into a device or linked via a Bluetooth connection before the user can access their digital assets.
