A hardware wallet is a dedicated physical device that stores cryptocurrency private keys in a secure element and signs transactions internally, so the keys never leave the device or touch an internet-connected computer. It protects against malware and remote key theft by isolating signing operations behind on-device confirmation. Hardware wallets are a foundational tool for self-custody of digital assets.
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- Keys are generated and held in a secure element, and transactions are signed on-device after physical confirmation, defeating host-based malware. In multi-signature setups, several hardware wallets distribute signing authority, raising the bar for theft or coercion and supporting institutional custody controls.