6 Best Advantages of Hardware Wallets in 2023

A hardware wallet is an encrypted physical device that keeps your digital assets safe. Also known as a cold wallet, it’s designed to be the sole point of access to your portfolio by removing the online connection to your digital assets

Think of a hardware wallet as your personal cryptocurrency vault. They provide encrypted offline storage that you store safely in your physical possession. As a Kinesis customer, you can also store your Kinesis gold (KAU) and silver (KAG) in one too.  

Crypto wallets that you can access via the internet database via a computer or mobile device are referred to as „hot wallets“. As hot wallets are online and connected to the internet, they’re more prone to common attack vectors such as hacks and phishing attempts.

Hardware wallets only connect to the net when they’re in use, meaning that it provides you with an extra layer of security and more protection from these online-based external threats. 

With that in mind, here are the specific advantages of a hardware (cold) wallet.

1. The private key remains unexposed

You only ever need to enter your private key (or seed phrase) into your cold wallet – a secure, highly-encrypted hardware device.

Your password is never entered on a computer or mobile device, meaning that it’s never exposed to the possible security risk of hackers copying or stealing it.

2. The increased access security of PIN encryption

Some providers encrypt hardware wallets with PIN protection. Others offer biometric logins.

Some even have further built-in security against unauthorised attempts. If someone manages to obtain  f your physical cold wallet and tries to figure out your code, your wallet hardware will lock them out after three wrong attempts.

3. Hold multiple digital currencies in the same cold wallet

There is no limit to how much cryptocurrency or digital assets you can hold in your hardware wallet. After all, digital currency and cryptocurrency are code, not notes and coins.

Some hardware wallets allow you to hold many cryptocurrencies at the same time. For example, the CoolWallet S has room for over 100 crypto assets andThe CoolWallet Pro offers space for over 150.

4. No vulnerability to computer viruses

Viruses, malware, and even ransomware can affect crypto wallets stored on PCs or online.

As the viruses hackers design attack software-based wallets connected to the internet, they can’t compromise the security of a hardware wallet.

5. Transaction verification on the hardware device

You need your encrypted hardware wallet to verify every transaction you make. No one, not even you, can make a transaction without access to your cold wallet.

6. Kinesis Only – Store gold and silver digital currencies

Kinesis CoolWallets are among the best hardware wallets for crypto available. Using the CoolWallet range, you can store Kinesis gold bullion and silver bullion based digital currencies on them, plus many more.

You can securely store Kinesis KAU, KAG and KVT, alongside a wide selection of cryptocurrencies:

• Bitcoin (BTC)
• Bitcoin Cash (BCH)
• Ripple (XRP)
• Ethereum (ETH)
• Litecoin (LTC)
• Horizen (ZEN)
• Omni Tether (USDT)
• Icon (ICX)
• Binance Coin (BNB)

Why is the Kinesis CoolWallet the best hardware wallet for cryptocurrency?

Being able to store and spend cryptocurrency securely matters. Digital assets are a target for cybercriminals and you need to keep them safe from external attacks. However, you want your digital assets to be accessible enough to use in spending and trading at the same time.

The CoolWallet meets these requirements and more, as you can see from the list of benefits below:

• Security: There’s a reason we call the encrypted Kinesis CoolWallet a portable vault. You get the added security of a biometric login, plus physical 2FA checks, ensuring the safety of digital assets.

• Battery Life: We made sure the batteries in Kinesis CoolWallets last for a long time. You can expect them to last around two weeks with just two hours of full charge time.

• Waterproof: We built the Kinesis CoolWallet range to withstand the tests of everyday life. Our portable offline storage solution has drawn industry praise for its resilience. 

• Dimensions: The size of a credit card, you can keep the Kinesis CoolWallet S on your person and out of harm’s way at all times.

• Bluetooth: Connect to the Kinesis app (iOS/Android) securely via Bluetooth.

• Recovery options: In case the device gets lost, stolen, or damaged, most hardware wallets provide a recovery phrase option. This allows you to retrieve your assets on a new device using a unique set of words given during the setup process.

• Customer support: We’re available by phone, email, live chat, and contact form in case you need help with your Kinesis Coolwallet.

• POS staking feature: CoolWallet Pro offers POS staking, allowing you to earn rewards either in the form of transaction fees or newly minted coins. 

Digital wallet hardware FAQs

Knowing how to secure and manage digital assets is important for any cryptocurrency investor. 

Below, we answer some of the most commonly-asked questions about hardware wallets. We explain why crypto hardware wallets are a critical tool for securely storing and managing digital currencies.

What is a hardware wallet?

A hardware wallet securely stores the private keys to your cryptocurrencies and other digital assets. Whereas a traditional wallet holds cash, the unique, encrypted codes in your digital wallet are there to secure your digital assets safely.

The primary purpose of your hardware wallet is to keep your private keys safe. They’re called hardware, or cold storage, wallets because, just like a USB stick, they’re physical devices. But instead of storing photos or documents, they store the keys to your digital currencies.

Do I need a hardware wallet for my cryptocurrency?

It depends on your cryptocurrency usage and the value of the assets you own. If you only have a small amount of cryptocurrency that you use for everyday transactions, a software wallet on your phone might be enough.

If you have a significant amount of digital currency as a long-term investment, it’s advisable to use a hardware wallet, asa hardware wallet keeps your keys offline and safe from online hacks. 

That means your digital assets are safer than if you store your keys on internet-connected devices or online platforms.

Are hardware wallets safe?

Hardware wallets are one of the safest ways to store your cryptocurrencies. Your private keys stay offline always. Performing any transaction requires physical interaction with the card. That makes them far less prone to hacking and unauthorized access. 

You do need to keep your hardware wallet safe from loss or physical damage. You also need to back up your recovery phrase. That’s a unique set of words that you need to retrieve your assets if you lose or damage your hardware wallet.

Is CoolWallet just a Bitcoin hardware wallet?

CoolWallet is much more than just a Bitcoin hardware wallet. It can store hundreds of different types of cryptocurrencies and fungible tokens. The two main products are:

• CoolWallet S supports over 100 different digital tokens. It also handles ERC-20 / BEP-20 / TRC-20 customized tokens.
  
• CoolWallet Pro manages over 150 tokens, including all ERC-721 and ERC-1155 NFT tokens. CoolWallet Pro also has POS staking and NFT integration.

Kinesis tip: ERC-20, BEP-20, and TRC-20 tokens are standards used for fungible tokens on the Ethereum, Binance, and Tron blockchains. ERC-721 is a standard for non-fungible tokens on the Ethereum blockchain. ERC-1155 is standard for both fungible and non-fungible tokens on the Ethereum blockchain. 

How much do CoolWallets cost?

Choose the CoolWallet that’s right for you:

• CoolWallet Pro: An elite cold storage protection and convenience for your crypto, DeFi, and NFT assets. With multi-coin support, the Pro holds 20+ blockchains and over 12,000 coins/tokens. CC EAL6+ certified Secure Element chip. POS staking feature. NFT integration. Price $149.
  
• CoolWallet S: This holds crypto, DeFi, and NFT assets. Holds 12 blockchains and 10,000+ coins/tokens. CC EAL5+ certified Secure Element chip. Price $99.

Both CoolWallet editions are ultra-thin (0.8mm) and lightweight (6g), with both featuring a charging set, a getting started guide and two recovery phase cards.

Purchase a CoolWallet S and a CoolWallet Pro together to save $89.

Where to buy hardware wallets

As digital currencies become more mainstream, it becomes more and more important for you to protect your assets. 

Choose a Kinesis CoolWallet for enhanced security, versatility, and accessibility. Store your cryptos, NFTs, DeFi and Kinesis gold bullion and silver bullion-based digital currencies safely.

If you want to know how to get a hardware wallet from Kinesis, you can find everything you need with the Kinesis Shop.

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This publication is for informational purposes only and is not intended to be a solicitation, offering or recommendation of any security, commodity, derivative, investment management service or advisory service and is not commodity trading advice. This publication does not intend to provide investment, tax or legal advice on either a general or specific basis.