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A hardware wallet is a physical device designed explicitly to securely store your private keys offline. These devices generate and keep your private keys within their secure hardware environment, away from internet-connected devices. This core feature makes them one of the safest options for storing digital assets.
How Do Hardware Wallets Work?
While they are offline most of the time, hardware wallets are able to facilitate transactions efficiently. When you want to send cryptocurrency, you prepare the transaction details on your computer or mobile device. This information is then transferred to the hardware wallet through various methods—be it USB, Bluetooth, NFC, or QR codes.