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Glossary

Hardware Wallet

A physical USB-like device that stores private keys offline and requires physical confirmation to sign transactions.

Also known as: Ledger, Trezor

Last reviewed: 10 June 2026

A hardware wallet is a dedicated piece of electronics designed to keep private keys isolated from internet-connected computers. When a transaction needs to be signed, the unsigned data is passed to the device, signed internally, and the signed result is returned; the private key never leaves the chip.

Fraud vectors specific to hardware wallets include: counterfeit devices sold on third-party marketplaces pre-loaded with the attacker's seed phrase; fake firmware updates distributed through phishing emails that trick the device into exporting keys; and remote-support scams where a victim is guided to connect their device to malware while an attacker watches.

Purchase only from the manufacturer's official site, check authenticity codes, and never accept a "recovery sheet" that came pre-filled in the box. The only seed phrase that matters is the one you generated yourself on first setup.

Examples

  • A marketplace seller ships a Ledger clone with a pre-set recovery phrase, waiting for the buyer to load funds before sweeping them.

Sources