Cryptocurrency hardware wallets continue to be trending and with multiple providers like Tezos or Ledger, we now have a lot of different solutions at our disposal. These devices come with several enhanced features and because cryptocurrency exchange platforms were hit by multiple hacking attacks, many crypto users had already bought one. However, there could be situations when you don’t necessarily need one, which is why we would like to talk about this.
Who should buy a hardware wallet?
In case you are investing larger amounts (more than a few thousand $) into physical cryptocurrency, aiming to benefit from a long-term bullish trend, then it will be good to store your private keys on a hardware wallet. You won’t move them around too much and because of that, it will be a safe and convenient choice.
Other people who should buy one are those working with exchanges that suffered multiple attacks. Some had taken precautions after being hit once, but others don’t seem to have learned the lesson. We know people continue to use the same exchange because of lower spreads and commissions, which is why to make sure the tokens are safe, a hardware wallet will do the work. You should have a conservative approach with crypto due to several dangers waiting for unprepared individuals.
When does a hardware wallet become unnecessary?
Now, there are a few cases when a hardware wallet will make the process of using cryptocurrencies much more difficult. If you are a person who actively uses crypto for purposes like sending money abroad, buying a hardware wallet will be unnecessary. Also, if you are trading cryptocurrencies on an exchange platform, it will be harder to buy and then send to the wallet and when the time arises to sell, do the same transfer.
Keep in mind you need to deal with crypto based on different market conditions and with uncertainty still elevated, there will be some occasions when you will need to make split decisions. We know hardware wallet providers had improved their devices and now you can send crypto much faster to a hot wallet, but every second counts at this point.
For a trader, selling too late could mean lower profitability and frustration. The bottom line is that there are both advantages and disadvantages of using a hardware wallet. What’s important is that you figure out what’s the main purposes you want to use crypto and then assess whether cold storage is necessary.