Hardware Wallet
A physical device that stores cryptocurrency private keys offline. The most popular form of cold storage.
Hardware wallets like Ledger store your private keys on a secure chip inside the device. Even when connected to your computer for transactions, the keys never leave the device. The transaction is signed on the hardware wallet and only the signed result is sent to the computer.
This means even if your computer is compromised by malware, your keys are safe. To steal from a hardware wallet, an attacker would need physical access to the device plus your PIN.
Hardware wallets typically cost $50-150 and support multiple blockchains and tokens including USDC. They're recommended for anyone holding more than a few hundred dollars in crypto. The one-time cost is cheap insurance for protecting your assets.
Related Terms
Cold Storage
Keeping cryptocurrency keys completely offline, disconnected from the internet, for maximum security.
Hot Wallet
A cryptocurrency wallet connected to the internet, offering convenience but more exposure to potential hacks.
Self-Custody
Holding your own private keys, giving you full control over your cryptocurrency without relying on a third party.
Private Key
A secret cryptographic code that proves ownership of a blockchain address and authorizes transactions.
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This definition is provided for educational purposes. USDC.org is an independent resource and is not affiliated with Circle Internet Financial.