Definition
A hardware wallet is a dedicated device designed to generate or protect private keys and authorize cryptocurrency transactions without routinely exposing those keys to a general-purpose computer. The connected phone or computer can prepare a payment, while the device performs signing and may display details for confirmation. The coins remain recorded on the blockchain rather than stored inside the device. Hardware separation can reduce certain malware risks, but it does not make every transaction safe. A user can still approve the wrong destination, disclose a recovery phrase, install untrusted software, or rely on an insecure backup. Device loss is usually a recovery problem rather than automatic loss of funds when the required backup remains intact. Conversely, anyone obtaining sufficient recovery material may bypass the device entirely. The security model includes the device, its software, the verification process, and the backup arrangement.
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