What is THIS that lowers the risk of hacking by generating and storing private keys on a separate device?
What is THIS that lowers the risk of hacking by generating and storing private keys on a separate device?
Answer is : Cold Storage
A hardware wallet is a physical device that saves your private keys offline, making it more difficult for hackers to access your bitcoin assets . When you wish to perform a transaction, you connect the hardware wallet to your computer or mobile device and approve the transaction using the device’s buttons and displays. Hardware wallets are regarded one of the safest methods to store bitcoin since they give an extra degree of protection beyond software wallets. They are also user-friendly and support several cryptocurrencies
On the other hand, a cold wallet is a form of wallet that doesn’t connect to any outside source. It basically keeps assets and makes transfers back and forth from your other wallets. Cold wallets are regarded more secure than hot wallets since they are not linked to the internet, making them less accessible to hacker attempts. However, cold wallets may be less user-friendly than hardware wallets and may not support as many coins.