Glossary

Hardware Wallet

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A hardware wallet is a digital device whose sole purpose is to generate and store public and private keys and sign transactions. Hardware wallets allow users to send and receive Bitcoin in a secure fashion. Hardware wallets are a form of cold storage, meaning that they allow a user to keep their private keys safely disconnected from the internet.

➤ Learn more about Bitcoin cold storage.

Most hardware wallets implement BIP 32 and BIP 39 standards, meaning they use Hierarchical Deterministic wallets and mnemonic phrases. Like all wallets, different hardware wallets vary in terms of security, privacy, and reliability.

Related Terms
Hierarchical Deterministic (HD) Wallet
A Hierarchical Deterministic Wallet is the term used to describe a wallet which uses a seed to derive many public and private keys. These keys are generated in a deterministic way, and are used to send and receive bitcoin.
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Cold Storage
Cold storage describes any method of storing data which does not connect to the internet or any other devices. A Cold wallet is a form of cold storage often used by bitcoiners to protect bitcoin which they do not plan on moving frequently.
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Partially Signed Bitcoin Transactions (PSBT)
Partially Signed Bitcoin Transaction is a bitcoin standard which facilitates the portability of unsigned transactions. This allows multiple parties to easily sign the same transaction.
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