What is a hardware wallet? How the device protects your keys

A hardware wallet is a small device that generates the private key to your cryptocurrencies, stores it and never releases it. It looks like a USB stick or a chip card, usually carries a small display, and is connected to a computer or a phone only when you want to sign something. Everything that follows explains why this particular design makes the difference. The question has a practical side right now. Reports of tampered devices, fake manufacturer websites and drained wallets have piled up through October 2026.