The Major target of hackers will be the Cryptocurrency exchanges and servers because it holds a large amount of Currency. There are various examples of such hacking, one of them is Mt Gox exchange in 2013. In that hacking event, about 850,000 Bitcoin were stolen which costs $450 million at that time. Now On October, the value of 1 Bitcoin equals to 4943.40 GBP. There are some services who claim that all the currency were insured against the theft.
Bitcoin Wallet will act similar to Online Bank account. The Wallet won’t store any bitcoins in it but it will store the private key used for the transaction. The nature of Bitcoin is that we can’t download the blocks from the blockchain and so they can’t be stored anywhere. The Access to the Blockchain in the form of secured digital code called as the private key. The Public key which can be used to access the currency address. So the Bitcoin wallet, using which we can store our access to the currency.
Based on the type of Wallet, the bitcoin coin wallet is classified as Paper Wallet, Hardware Wallet, Software Wallet and Online Wallet. The Better Wallet among the classification is Hardware Wallet. Using which we can keep our Bitcoins safe and secured.
The Hardware Wallet will act as a dedicated device to provide additional layer security for your key storage. If it’s a paper wallet, the code must be entered in online or else if it’s a software wallet, you need to provide security for your system or the software. But as it is a hardware wallet, your key will be secured strongly and also it will be in the hold of you. To use the hardware wallet, you must need a software wallet to interact with it. Most of the time the Hardware wallet will be provided with their own software wallet to interact with the system. The Hardware Wallets are very much secured, such that even it can be used in the system which is affected by virus or ransom ware. The Key information will be secured and also it can’t be downloaded or extracted as a plain text. This ensures the security of the Hardware Wallet and these wallets were trusted and used by the bank industry also.
Some of the Best Hardware Wallets are
LEDGER NANO S WALLET