Why Should You Order 2 Or More Hardware Wallets At The Same Time?
Hardware wallets are very useful tools for storing cryptocurrencies. They provide several advantages over traditional online wallets.
Hardware wallets are the best way to store your cryptocurrency. They’re the only method that allows you to manage a wide variety of cryptocurrencies while also keeping your recovery seed offline.
However, the burning question for a lot of people is if they should own multiple hardware wallets.
This article explains why the answer to the question is yes, you should own 2 or more hardware wallets.
Why having 2 or more hardware wallets is a good security measure?
Let’s take a look at the pros and cons of having multiple hardware wallets.
Redundancy is a key component of any security system. In contrast, systems designed for efficiency often lack redundancy, and if one fundamental component fails, the entire system could fail. For example, human beings have two kidneys, and they can survive if one fails. Aircraft have triple redundant components, cars have spare tires, and bringing a second pencil to a test is a good idea.
Using multiple hardware wallets is an effective strategy to distribute risk across different components.
The only con to this strategy is the price – hardware wallets cost money, and that is the only downside to having multiple hardware wallets. However, the cost of the wallet is worth it (especially if you own a sizeable amount of crypto) since you significantly improve the security of your crypto funds.
Is one hardware wallet enough?
One hardware wallet is enough, but for your security, it would be better to have multiple hardware wallets.
If you own multiple cryptocurrency wallets, you can make copies of each other. Each copy will store the same cryptocurrencies, private keys, public address, accounts, and transaction history, so they will work exactly the same way. This applies to hardware wallets from different companies, including Trezor and Ledger.
If one of your devices is lost, stolen, or broken, you will be able not only to recover your coins but also to regain access to all of your other devices. In addition, if one of the providers goes bankrupt, you will still be able to access your funds from the other provider.
Should I have more than 1 hardware wallet?
Yes, you should have more than 1 hardware wallet.
To make two or more hardware wallet copies of each other, all that you need to do is import the backup seed from one hardware wallet to another.
Using multiple hardware wallets enables you to better secure your funds in the event that your device is lost. If your hardware wallet gets lost or stolen, the pin code will prevent most unauthorized individuals from accessing your crypto assets and recovery seeds. However, if an unauthorized person does gain access to your device, it’s possible they can extract the recovery seed. Therefore, it’s recommended that you keep a backup of your recovery seed in a safe location offline.
Do I need a different wallet for each Cryptocurrency?
No, you don’t need a different wallet for each cryptocurrency. All major hardware wallets like Ledger, Trezor, or Coolwallet are multi-currency wallets where you can store all major coins. If you want to hold some obscure, smaller coin, you might need a native wallet for that coin, which is best to download from the project’s official site.
How many hardware wallets should you own?
You should own at least 2 hardware wallets as a security measure. In order for a hardware wallet to be able to import the same recovery seed and duplicate each other, they must be based on a standard called BIPs.
BIPs is a standardized list of 2048 words randomly used within 12, 18, or 24-word recovery seeds. The Trezor One, Trezor Model T, Ledger Nano S, Ledger Blue, and Ledger Nano X use BIPs. All of these hardware wallets can be recovered with 12 or 18 or 24-word seeds, and therefore they are able to be duplicated from one another. You may have as many BIPs compatible hardware wallets as you wish to store the same recovery seed, however, if you lose your hardware wallet, you will not be able to recover it without the original recovery seed.
Can I have two ledger wallets?
Yes, you can have two Ledger wallets. The Ledger Live application can be used with multiple ledger devices. You can split your coins and hold them 50-50 in each device, or you can use one seed phrase for both devices and store all your coins under this one seed (on two devices).
Can I store all my crypto in one wallet?
Yes, you can store all crypto in one wallet as long as that wallet supports the coin you want to store it in. Some smaller and less popular cryptocurrencies are not supported on major wallets, and in that case, you will have to keep those coins on an exchange or download a separate wallet just for that coin.
You now understand the benefits of using multiple hardware wallets and how to set up this system. Any serious investors of cryptocurrencies will want to back up their assets and spread risk across multiple devices. The multiple hardware wallet methods achieve this goal.
CaptainAltcoin's writers and guest post authors may or may not have a vested interest in any of the mentioned projects and businesses. None of the content on CaptainAltcoin is investment advice nor is it a replacement for advice from a certified financial planner. The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of CaptainAltcoin.com