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MarkRoberts
Bronze Bitcoiner
Bronze Bitcoiner
Posts: 483
Joined: Wed Jan 13, 2021 10:19 am

What's the point of using wallets if they don't actually hold your crypto?

Sat Mar 13, 2021 12:55 pm

a hardware wallet gives you a secure way to access and interact with the blockchain.

While you theoretically could just type your 24 word phrase into a website or piece of software every time you want to interact with your crypto, doing so would be very risky. There really isn’t a secure way to enter that information into a computer without the chance of it being compromised in some way.

When using a hardware wallet, you could be on a hacked computer with a key logger or even one where someone has complete control and is watching you live, and they will not be able to get your private keys, while you can still access your funds safely.

Hackers are everywhere, and crypto is a notoriously easy target. There are stories all over the internet of people who typed their private key into the wrong place and lost thousands instantly. And since there’s no central agency or organization to guarantee or secure your funds, is someone gets access to your crypto, it’s gone. And you’ll never be able to get it back.

That’s why the general rule is to never enter or back up your private key into anything electronic that isn’t a hardware wallet. Don’t type it in anywhere, don’t take a picture of it, don’t record you saying it. Put it in a hardware wallet (or have the wallet generate your one for you) and write it down by hand on paper (or etch it into metal if you’re serious) and keep a few of these backups in secure places. That’s by far the safest handling practice for holding and using crypto.

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