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August 20, 2022

Crypto winter has investors using hardware wallets

This summer has seen an abundance of crypto victims. Hodlnaut followed lenders Vauld and Celsius, as well as the Singaporean exchange Zipmex, in banning user crypto withdrawals on August 8, due to current market circumstances.

The decision was reportedly adopted to stabilize liquidity, a term also used in Celsius’ statement about the withdrawal freeze.

Investors were blindsided by the announcement that the majority of their digital assets had been effectively seized while companies formulated a recovery strategy. Many have been impacted to varying degrees, and reading about the human toll may be devastating.

The latest liquidity issue has reminded many of the industry’s wise advice: Don’t bring your keys or coins. And fresh data indicates that many people are now taking these comments to heart.

While crypto firms are declaring bankruptcy or seeking bailouts, Coinbase, Gemini, and blockchain.com have all announced major layoffs, and Solana and Nomad are recovering from another multimillion-dollar assault, hardware wallets are thriving.

Hardware wallets are often regarded as the optimal choice for long-term cryptocurrency storage.

They store the private keys of users safely offline. In contrast to software wallets, hardware wallets are mostly resistant to internet assaults. However, they have been targeted by phishing attempts, the most recent of which occurred this year when a Mailchimp newsletter database including Trezor users’ email addresses was hacked.

Therefore, hardware wallets are not invulnerable, but if you are cautious and vigilant, they may be a far safer option than software wallets.

The best versions from Ledger and Trezor are also immune to physical manipulation, making them a secure choice for anybody seeking long-term safekeeping for digital assets.

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A vulnerability in Slope mobile wallet apps, for instance, resulted in the “inadvertent transmission” of Solana users’ private keys to a “third party,” according to Solana’s creators. The perpetrator stole $4.5 million in SOL and USDC.

The CEO of Binance, Changpeng Zhao, then tweeted that worried parties might move their assets to a hardware wallet.