Thinking to buy a Bitcoin Hardware Wallet? - Here some tips!
Most people call it a "Hardware Wallet", which is inaccurate, it is not a wallet, it is a device to approve transactions.
Most people call it a "Hardware Wallet", which is inaccurate since it is not a wallet, it is a hardware device to approve transactions by verifying you own the “bitcoin account” (seed words), therefore, IMO, a more logical name is "Seed Signer"
Once you have bought the device, after you turn it on, you are prompt to create a new bitcoin account or use an existing one, a bitcoin account, normally is composed of 12 words which the community calls seed words (it could be 24 seed words as well).
Once configured, you will use it in combination with your Bitcoin App (the community calls it Bitcoin Wallet) to sign transactions.
How does it works?
Once you are fully setup, if you try to send funds with your Bitcoin App (Bitcoin Wallet), you will be prompted to sign the transaction with your "Hardware Wallet", it will prompt you to introduce a PIN or a password or use a bio-metric identification, once you do so, the transaction will be broadcasted, without it, you will only be able to send funds. It is like having to introduce a password every time you try to send funds.
As a good operational security (OpSec), you will not carry the “Hardware Wallet” with you in the street, therefore, even if your mobile device is stolen or you are coerced to unlock it, your funds are safe.
Are hardware wallets safe?
The answer is YES, but some more than others, you have to do your homework and choose wisely, there is a check list I will suggest you follow before buying one:
Uses a Chip Secure Element (SE), which is a chip that is protected from unauthorized access and stores confidential and cryptographic data
It is Air Gap, which means that is physically isolated from unsecured networks, no Bluetooth, no Wi-Fi, no USB connector. Only way to add information is via the user interface and for OS upgrades, a SSD card
The OS in the device is FOSS (Free and Open Source Software)
If the company offers a Bitcoin Wallet with the device, it should be as well FOSS
You can acquire the product directly from the company
You can acquire the product with Bitcoin
The company will agree to deliver to a PO-BOX or similar
In case you pay with non secure methods which give away your full name and address, ensure that the company has a policy of deleting the client records after a short period of time to ensure your safety. If they get hacked, cyber criminals will know your name and address and probably target you
Any Recommendations?
I will suggest you do your own research and do not trust, verify. I am not affiliated or receive any income from any of the products mentioned below...
My favorites so far (yes, they check all the boxes I mentioned):
"Passport" from Foundation Devices (link: https://foundationdevices.com/)
"Coldcard" from Coinkite (link: https://coldcard.com/)
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