Cryptocurrency wallet

What is a crypto wallet?

A cryptocurrency wallet is a device, program, or service that stores a pair of private and public keys for validating crypto transactions.

So what is a hardware crypto wallet?

A hardware wallet is an electronic device that allows the user to create and securely store these private keys. The main advantage over software wallets (online, desktop, mobile...) is that the hardware wallet does not share secrets with any device to which it is connected in any way.

How do hardware crypto wallets work?

The hardware wallet stores the user's private key and not the cryptocurrency (accounting unit on a blockchain). Crypto coins are stored on the "blockchain", which is a record of all transactions and balances, permanently accessible to everyone via the Internet. The private key serves as the authentication of a certain amount of cryptocurrency in the blockchain and can be moved with with it (sent to another address).

The main function of a hardware wallet is signing transactions (transferring value from one address to another). The signature is possible with a (unique) private key known only to the wallet. The signed transaction is sent by the wallet to the network via the application, where it is publicly announced and queued for confirmation.

Advantages of a hardware wallet

Hardware wallets protect secrets even in the event of an attack on a computer, phone or the operating system of the device to which we connect the wallet. Software wallets cannot provide this level of security.

Therefore, we can say that digital assets are owned by the user only when they are stored on a hardware wallet, which is only owned by the user or by the user's selected persons.

In the event of loss, theft or damage to the hardware wallet, the property is still protected if the user has created and properly protected a backup. With modern wallets, a backup copy only needs to be created at the beginning, and as long as the wallet is not deleted, the backup copy does not need to be updated after each transaction.

If the backup is created in some standardized way (eg BIP39 for bitcoin) the private key can be safely moved to another hardware wallet that uses the same type of secret storage.

Using hardware wallets is getting easier and easier over time. The wallet connects to a computer or phone and provides access to crypto assets. Some applications to which hardware wallets are connected also allow currency trading (although we do not recommend doing this 😊).

Which one to choose?

There are already many manufacturers of hardware wallets on the market. Most manufacturers also offer their own software solutions that facilitate the creation, storage and even trading of crypto coins and tokens.

Eventus sistemi is the first distributor of hardware wallets in the world, as we started cooperation with Ledger at the end of 2014, and in February 2015 we already delivered the first wallets to our customers. We only work with the most established manufacturers who offer proven (many times deliberateley attacked and therefore patched) and secure wallets on the global market.

These are Trezor, Ledger, Shift Crypto and Foundation Devices.