Hardware wallet

A dedicated physical device that stores private keys offline and signs transactions internally.

A hardware wallet is a small physical device — typically the size of a USB stick — designed to store Bitcoin private keys securely. The keys never leave the device. When you want to send Bitcoin, you connect the device to your computer or phone, the wallet software builds the unsigned transaction, the device signs it internally (with you confirming on its physical screen), and only the signed transaction is sent back.

The security advantage is enormous. Even if your computer is completely compromised, a malicious program cannot extract the keys from a hardware wallet. The attacker would need physical access plus your PIN.

Common brands: Ledger, Trezor, Coldcard, BitBox, Foundation Passport. Cost: £60-£200 typically. For amounts much larger than what you'd be comfortable losing, a hardware wallet is the standard. For smaller amounts and everyday spending, a software wallet on your phone is fine.

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Related terms

Glossary

Cold wallet

A wallet whose private keys never touch an internet-connected device. Maximum security, less convenience.

Glossary

Private key

The cryptographic secret that authorises spending Bitcoin. If someone gets your private key, they can spend your sats.

Glossary

Self-custody

Holding your own Bitcoin private keys. Nobody can freeze, seize, or lose your sats — except you.

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