5 Myths About Hardware Wallets
A beginner-friendly guide to help you understand self-custody safely.
When people hear “hardware wallet,” they often imagine something complicated, technical, and risky.
In reality, hardware wallets are the safest and simplest way to protect your crypto, especially if you plan to hold long term.
But because most people never get proper education on self-custody, a lot of myths get repeated.
Let’s clear them up.
Myth 1: “If I lose my hardware wallet, I lose all my crypto.”
False.
Your crypto is not stored inside the physical device.
It lives on the blockchain.
The hardware wallet only stores your private keys, which prove ownership.
If you lose the device:
your funds are still safe on-chain
you simply buy another device (Any brand)
you recover everything using your seed phrase
Losing the wallet ≠ losing your crypto.
Losing your seed phrase = losing access.
That’s the real distinction.
Myth 2: “Hardware wallets are unsafe.”
A hardware wallet has never been remotely hacked in the wild.
Not once.
Why?
Because your private keys are never connected to the internet.
They cannot be extracted through a virus, phishing link, or malware.
Most real hacks happen because:
users store seed phrases online
get tricked by fake websites
type the seed phrase into an app
approve malicious transactions
A hardware wallet protects you from 99% of these risks.
Myth 3: “Hardware wallets are too technical for beginners.”
This was true in 2017.
It is absolutely not true today.
Modern wallets like Ledger make it:
as simple as setting up a new phone
guided through a step-by-step interface
usable with apps you already know (Ledger Live, MetaMask, Phantom)
If you can use a smartphone, you can use a hardware wallet.
Most beginners are shocked at how easy it feels.
Myth 4: “If Ledger (or any company) goes bankrupt, my crypto is gone.”
No company controls your crypto.
The seed phrase gives you full ownership.
Even if Ledger disappeared:
your funds remain on the blockchain
any hardware wallet can restore them
even open-source wallets can restore them
your seed phrase works universally
The company is not your custodian.
You are.
Myth 5: “I don’t need a hardware wallet, exchanges are safe.”
Exchanges are convenient, but they are not built for long-term storage.
Risks include:
hacks
internal fraud
withdrawal freezes
government seizures
exchange bankruptcy
account lockouts
When your coins sit on an exchange:
You don’t own them.
You own a database entry inside a company.
A hardware wallet gives you real ownership.
Bonus Myth: “I’ll buy a hardware wallet later… after I get more crypto.”
This one hurts a lot of beginners.
Hackers don’t care if you have:
$200
$2,000
$20,000
If you store keys on your phone or computer, you’re vulnerable.
Security and learning should come before investing big amounts, not after.
Your first purchase should be education.
Your second should be secure storage.
Final Thoughts
Hardware wallets are not scary.
They’re not complicated.
They’re not just for “experts.”
They are simply the modern equivalent of a safe — a place to store what matters.
By learning how they work, you protect yourself from:
exchange failures
phishing attacks
device malware
lost passwords
bad actors
Crypto is freedom, but freedom requires responsibility.
A hardware wallet is the easiest and safest step toward true ownership.
If You Want to Start With a Hardware Wallet
For beginners, Ledger is the most trusted and widely used option.
I personally prefer it because:
setup is simple
the ecosystem is polished
it supports Bitcoin + Ethereum + Solana + thousands of assets
the security model is time-tested
the learning curve is incredibly beginner-friendly
If you want to support my work and start your self-custody journey, you can use the link below to purchase your hardware wallet from ledger:
(At no extra cost to you)
Not Financial Advice.