How do cryptocurrency wallets work?

When you buy cryptocurrencies like Bitcoin and Ethereum, you receive two keys: a public and a private key.The public key is like a bank account number, which you can share with third parties to receive cryptocurrencies without fear of being discovered.The private key signs transactions and allows you to send and receive cryptocurrencies. Private keys must be secure and secret. If someone gains access to them, they will also have access to all cryptocurrencies associated with them.A cryptocurrency wallet stores your private keys and gives you access to your assets.

Why do I need a hardware wallet?

Online wallets (hot wallets) store your private keys on systems connected to the internet, making them vulnerable to online attacks. Storing your cryptocurrencies on an exchange also means you have no real ownership or control over them. If the exchange goes bankrupt or suspends withdrawals, you lose access to your funds.Hardware wallets store your private keys offline, offering complete control and greater security. Even if you lose or misplace your hardware wallet, you can buy a new one and use the recovery password to access your funds.