Crypto lovers! At this time, buying, selling, swapping, and even lending or borrowing crypto assets has become child’s play. Now, you may be thinking how.
The answer lies in DeFi apps, offering users a simple and secure way to interact with crypto services (lending, borrowing, swapping) without relying on any intermediary.
However, let’s ask a very simple question: Can we keep our crypto assets 100% secure while using these apps? The answer is never!
While these apps come with so many features (transparency, decentralization, and liquidity provision), they are also prone to cyber attacks, hacks, and phishing attacks.
This is where hardware wallets stand out as your crypto assets’ bodyguards, allowing you to store them securely and offline.
Now, being security-conscious users, you will surely ask: How to use a hardware wallet? How can we add an extra layer of security while using any DeFi app?
We welcome you to this comprehensive guide post, in which you will learn:
- What are hardware wallets?
- Why use them (their features)?
- How to use a hardware wallet?
So, let’s take off on this journey….
What Are Hardware Wallets – Overview And Features
Hardware wallets are a type of crypto wallets that store your private cryptographic keys by keeping them separated from internet-based devices. These digital crypto devices let users interact with multiple blockchains and manage different crypto coins at the same time.
These devices come with countless features that attract a large number of crypto users toward them. Let’s unveil a few of them briefly.
Features of Hardware Wallets
We have picked the top 5 features out of all available ones. Read them one by one.
1. Secure
As we have told you that these physical devices store your private keys offline or without an internet connection. This feature effectively reduces the risks of hacking, malware, and phishing attacks, making your assets more secure.
2. Recovery Option
Readers! The greatest benefit of using these devices is that you are given a specific 24-word recovery seed phrase. The benefit of this recovery phrase is that if your wallet gets lost, stolen, or damaged, you can easily recover your keys or restore funds on a new wallet.
3. Transaction Verification
A hardware crypto wallet displays all transaction details (amount, recipient address, and transaction fee) on the screen. You have to verify a transaction by checking all these details before approving it.
4. Multiple Coins Support
These secure digital devices let users manage different crypto coins from different blockchains simultaneously. Whether you have Bitcoin, Ethereum, Solana, or other crypto assets, you can easily and safely store all of them in a single device.
5. Portable Devices
Fun fact! These physical devices look like USB drives and are designed in such a way that you can carry them in your pocket. They can be used anytime and anywhere, making them an ideal choice for thousands of crypto users.
How to Use a Hardware Wallet: A Comprehensive Guide
We are going to compile a simple 4-step guide on how to use a hardware wallet. DeFi users! Each step requires you to pay full attention so you may not miss any key information.
Step 1: Choose the Right Hardware Wallet
Before delving into how to use a hardware wallet, you need to select the right one. When you step into the crypto market, you will come across several hardware wallets, such as Ledger Nano X, Trezor Model T, SafePal S1, and others.
However, keep in mind: You have to choose a wallet that has all the features( security, user interface, multiple coins support) discussed in the previous section.
Step 2: Set Up Your Wallet
Setting up your hardware wallet! This is the step that we believe is the most difficult, where many users get confused. Don’t worry, we will break it down into very easy and simple steps so you can complete this without any confusion.
Install Wallet Software
Every hardware wallet comes with its specific software. So, first of all, you have to download the software associated with your wallet from its official site.
Connect Your Wallet
After installing the software, plug your wallet into your computer or mobile phone using the USB cable. This connection can also be made through Bluetooth.
Generate a New Wallet
Now, the software you installed will show you some instructions on the screen. Follow them step-by-step to generate a new wallet. Once created, set a strong and tricky password using letters, symbols, and numbers.
Recovery Seed
During this creation, your wallet will give you a 12 or 24-word recovery seed. We have already told you that this seed will help you recover your funds and keys if your device is stolen or damaged.
Pro tip:
| “Write down this recovery seed on a piece of paper, despite saving it online. Otherwise, this phrase will end up in the hands of hackers, and they will misuse it”. |
Step 3: Connect Your Hardware Wallet to Any Web3 Wallet
Readers! You can’t directly use a hardware wallet with a DeFi app. You first have to connect it to a third-party web3 wallet. Now, there are multiple web3 wallets, such as MetaMask, Argent, Rabby, and others. However, MetaMask is preferred the most due to its simple interface.
How to connect a hardware wallet with MetaMask?
Here, we will discuss some steps that will let you learn how to connect your device with MetaMask.
- Download the MetaMask browser extension from its official site and set up the MetaMask wallet.
- At the top right, click on the account icon and select “Add Hardware Wallet”.
- Now, select the device( Ledger or Trezor) you have to connect with this third-party extension.
- Follow the instructions associated with your device and hit “Continue”.
- Here, a pop-up will appear and search for your device(hardware wallet). Select your device and hit the “Connect” option. Your device will automatically connect to MetaMask.
- Now, your device will appear in MetaMask as an option “Hardware Wallet”.
Step 4: Use Your Wallet With Any DeFi App
Finally, access any DeFi app, such as Uniswap( for swapping tokens) and Aave( for lending and borrowing tokens), and start making a transaction.
Let’s uncover how you can use a DeFi app without worrying about the cyber attacks( as you are using a DeFi app with a hardware wallet now).
- Open the DeFi app that you want to use.
- On the home page, you will see multiple options. Select the “Connect Wallet”.
- Here, you have to select MetaMask(connected to your hardware wallet) and start a transaction( Swapping, Lending, Borrowing, and others).
- Now, physically confirm the transaction by clicking your device buttons.
Final Talk
DeFi apps have revolutionized the way we interact with cryptocurrencies. From buying or selling to swapping and from lending to borrowing crypto assets, each task has become faster, easier, and more accessible.
Although these apps offer greater flexibility and convenience, they also come with many risks( hacking, malware, phishing attacks). To eliminate the fear of losing crypto assets, hardware wallets have stepped into the crypto landscape as a powerful solution.
These physical and digital devices come with countless features and store your private keys and crypto assets offline( without internet). This feature makes them stand out from other types of wallets in terms of security
In this blog, we have discussed a comprehensive guide on how to use a hardware wallet. From choosing the right wallet to use with a DeFi app, we have explored everything in detail.
