The Foundation of Digital Ownership

Why Hardware Wallets?

A **hardware wallet** like Trezor is a specialized type of cryptocurrency wallet that stores the user's private keys (critical secret information) in a **secure offline hardware device**. This design is often referred to as **cold storage**. The primary benefit is **isolation**: the keys never touch your potentially compromised computer or phone. This protection is vital because the vast majority of crypto thefts occur when private keys are exposed to malware or phishing attacks on standard computers.

Key Security Principles

Security is built on several layers. The most important is the **Seed Phrase (Recovery Seed)**, a list of 12-24 words. This phrase is the ultimate backup—it can recreate your entire wallet on a new device if your Trezor is lost or destroyed. **Crucially, the seed phrase must never be stored digitally or photographed.** It should be written down on paper and stored securely offline.

The second layer is the **PIN code**. This code is entered on the Trezor device itself to unlock it. Trezor uses a randomized PIN grid displayed on the device screen, making keyloggers useless. The device actively delays subsequent attempts after incorrect PIN entries, exponentially increasing the time required for a brute-force attack.

All sensitive operations, such as signing a transaction, require **physical confirmation** on the device's screen and buttons. This **"What You See Is What You Sign" (WYSIWYS)** principle prevents malicious software from altering transaction details without the user's explicit, physical approval.