Definition
A physical device that stores cryptocurrency private keys offline, disconnected from the internet. Hardware wallets are the most secure way to store significant amounts of cryptocurrency long-term.
Why It Matters
Hardware wallets protect against online hacks, malware, and phishing attacks because your private keys never touch the internet. They are the gold standard for self-custody.
Example
A Ledger Nano X is a hardware wallet the size of a USB drive. Even if your computer is hacked, your crypto remains safe because the private key never leaves the device.
Related Terms
Cold Wallet
Seed Phrase
Private Key
Self-Custody