Protecting Your Digital Assets Pt. 4: Hardware Wallets
WORLD3
Account security with Matrix World, Part 4 — Hardware wallets
Hardware wallets have become increasingly popular as they provide a much safer way to store your digital assets. With a hardware wallet, you can take your assets ‘offline’ and remove them from internet access; this is known as a cold wallet.
In this article, as part 4 of a 5 part series, we will look at protecting your assets using a hardware wallet.
For those who are new, Matrix World, created by Matrix Labs is the first multichain metaverse that allows users to own land on an option of blockchains. This option of blockchains, in conjunction with their plans for a friendly WYSIWYG editor, customizable object life cycles, gameplay, and entertainment, makes Matrix World an exciting choice.
Our last article discussed common ways scammers can trick you into providing private information. Now we’ll look at some of the most popular forms of hardware protection and why you should consider using one.
In short, a hardware wallet is an electronic device that stores your private key (password for your wallet) offline, removing access to your cryptocurrencies without physical access.
So what are some of the benefits of a hardware wallet?
- Your private key is stored offline. Comparing this to a browser-based extension (like Metamask) that holds your private key locally and anyone that has access to your computer and password could potentially access your wallet.
- You confirm and sign the transaction on the hardware wallet itself. All transactions are verified on the hardware wallet itself, so you cannot complete a transaction without physical access to the wallet.
- You can hold multiple assets in one wallet. With most hardware wallets, you can store different cryptocurrencies and use just one pin to access any of them. Some wallets use a biometric log-in option as well.
- It’s a standalone unit. Recently we have seen many security updates required for browsers that could impact the security of your wallet. With a hardware wallet, it is run by its own stand-alone software and hardware and is not impacted by other third-party software.
Example of how to use hardware wallets to secure your portfolio. Credit: @vlozano_eth
Before we look at some popular hardware wallets, there are a couple of essential things to consider.
- Ensure you aren’t buying a copycat wallet (fake); always buy directly from the manufacturer’s website. Most manufacturers will have a way to check if your device is genuine; please see this article as an example from Ledger and some good tips.
- Make sure you store your secret recovery phrase in multiple secure locations. You cannot access your funds if you lose both your secret recovery phrase and your hardware wallet. You can buy metal plates to protect your secret recovery phrase from fires and floods.
- A hardware wallet will not protect you if you authorize the scammer to access your information in a transaction or provide them with your recovery phrase. It is good to have more than one wallet, storing all your important assets in the cold wallet and then having another wallet for minting projects.
In this Ledger article, they discuss your private key and the impact of storing this information online or offline.
Some popular hardware wallets include.
For a deep dive on hardware wallets from Coin Bureau, please watch this YouTube video — TOP 5 Hardware Wallets For SAFE Crypto Storage 🔓
Hardware wallets are a great addition to protecting your digital assets. If you have not read our previous articles, we suggest looking back over them to ensure you are not getting into any situations that may put your account at risk.
To learn more about Matrix World or get in contact, please visit the links below: