Many people often ask, ‘how many hardware wallets or Bitcoin wallets do I need to have’?
The answer is simple.
For a long time, I was not able to comprehend the benefits of owning two or more hardware wallets at the same time. Moreover, I knew many people who were holding back on owning just one hardware wallet!
For those who don’t know, “hardware wallets” are wallets that keep your private keys offline and away from easily hackable devices like computers and smartphones. If you don’t take care of your private keys, then it just a matter of time until you get hacked. This is because your bitcoins = your private keys. If you don’t own your private keys, you don’t own your bitcoins.
Why Should You have 2 Or More Hardware Wallets At The Same Time?
- To Have an Extra Back-up & Restore Purposes
Suppose you only have one hardware wallet due to some reason your one hardware Wallet has become lost. Luckily, you have not lost your coins because you still have the seed key.
You are now in a hurry to spend your coins now, and naturally, you go out searching for ways to restore your wallet using the seed key or you go-to the play store and restore your crypto wallet using a crypto app you found in the store, you input your seed key there. But that wallet wasn’t trustworthy! You’ve just given your seed key away to a hacker, and now, you’ve gone and lost all of your coins!
Alternatively, if you had owned two hardware wallets (like the Ledger or Trezor), then you would have safely and securely configured your seed key and have accessed your restored wallet without any problems.
If you do this one simple thing, you will be able to secure your cryptocurrencies including Bitcoin for the long term.
2. You have two clone wallets
The second benefit is to have two clone wallets.
But what’s the benefit of this?
Let’s suppose you are holding a huge amount of Bitcoin or other altcoin and you don’t want to risk losing them. One wallet you want to keep in your office or home for accounting/safety purposes, and another wallet you want to keep handy with you at all times in case you need to make a quick transaction. Cloning is an easy way to secure your cryptocurrencies. It simply means having the same wallet with the same seed in two different places.
I think this a smart way of handling your funds because you now have ease of access to many places – at home, in the office, or on the go. At the same time, since you have cloned your wallet, you also can use this second one as a backup in case the other one gets lost.
How do you make a clone of your hardware wallet? Follow these steps:
- Use your second device to configure the same seed key that you used when configuring your first device.
- Set a PIN on your second device (the pin can be the same or different for both devices).
Now you have cloned your wallet which will allow you to watch and sign any transaction from either device.
3. Diversification (Risk of storing BTC, Ethereum-based tokens, and altcoins)
Diversification is the another good Point to secure your funds, Some people even buy multiple hardware wallets for to store currencies in multiple wallets despite the fact; one hardware wallet can store many coins at a time.
But in some Terms its good to diversification of storage risk. The way to diversify is by storing Bitcoin in one wallet, Ethereum & Cardano in another hardware wallet and other altcoins in the 3rd hardware wallet, its Smart thing to do because trust in One Wallet or one Seed is too much riskier for funds.
Just to give you an example, I would put Bitcoin in one hardware wallet, Ethereum (and Ethereum-based tokens) in another hardware wallet,This way is the best way to mitigate the risk of storing Funds.
4. For educational purposes
Do You Want to Secure Your Crypto Funds?
To Store Crypto On Exchanges or unreliable Software Wallets its much riskier,Satoshi invented Bitcoin to make us our own bank. But if we ignore personal safety and education, how could be become our own bank.
One of the big areas of resistance is the myth around how cryptos are not safe to use. I feel this is because many people just don’t know how to handle and store them securely.
As more and more people get educated about cryptos, the market cap of the industry will continue to rise. This is what we are seeing happening now. So if we are able to teach people about cryptocurrencies and also educate them about how to securely store and use them, then I think cryptos will ultimately come out on top.
Popular Hardware Wallets:
Now, the question is, which hardware wallets should you own?
So here are my two suggestions of the best hardware wallets for Bitcoin (and other altcoins).
You can order them from their official sites using the below links:
So that’s all I have for you today.
Now I want to hear from you: How many hardware wallets are you using? Which ones do you like the best? Do you have a question about Bitcoin/altcoin hardware wallets? Let us hear your thoughts/comments/questions/concerns in the comments below!