Hardware wallet demand increases in 2022 bear market as exchange scramble

[Odusko]

As the 2022 bear market persists, crypto exchanges announce losses in revenue such as coinbase and binance.
A Hardware crypto wallet firm LEDGER has announced the highest shipment of its hardware wallet in 2022, amid the present bear market the CEO Pascal Gauthier went further during an interview with coin telegraph that the 2022 bear market has a heavy impact on centralized exchanges since users of those exchanges are moving funds off the exchange because of the fear losing they funds and optioning to store them on a hardware wallet where they have control of the private keys this results into the increase in the demands of the ledger hardware wallet presently.
https://cointelegraph.com/news/hardware-crypto-wallet-sales-increase-as-centralized-exchanges-scramble

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[bitmover]

As the 2022 bear market persists, crypto exchanges announce losses in revenue such as coinbase and binance.
A Hardware crypto wallet firm LEDGER has announced the highest shipment of its hardware wallet in 2022, amid the present bear market the CEO Pascal Gauthier went further during an interview with coin telegraph that the 2022 bear market has a heavy impact on centralized exchanges since users of those exchanges are moving funds off the exchange because of the fear losing they funds and optioning to store them on a hardware wallet where they have control of the private keys this results into the increase in the demands of the ledger hardware wallet presently.
https://cointelegraph.com/news/hardware-crypto-wallet-sales-increase-as-centralized-exchanges-scramble

I had some coins in binance Earn, with 10% interest rate for some stable coins, and withdrawal everything a few weeks ago.

I am afraid some exchanges will face financial and regulatory problems in this bear market. When the price is falling it is the perfect timing for politicians create new laws against crypto to "protect the population".

In this scenario, a lot of users will be withdrawing to their personal wallets as well, and hardware wallets are the way to go to most users. Easy to use and safe.

[RILWAN]

Bitcoin holders are moving the coins from non-custodial wallets to custodian wallets where they have their private keys, remember this is not your keys, not your wallet. Exchanges have lost huge liquidities due to hacks and the rest of it so a cold wallet is the best option.

[NeuroticFish]

The more known bitcoin becomes, the more the threats against users' funds.
Also people start becoming aware that keeping their funds on custodian services can easily be a bad idea.
And we, here on bitcointalk, suggest a lot the use of HW, since most people are not technical enough to properly safeguard their funds.

So this development is, by far, not a surprise.

[m2017]

It would be interesting to see statistics on sales of hardware wallets from other manufacturers for 2022 and compare with the results of the ledger. Does this company dominate the HW device market in terms of HW device shipments?

This news from the ledger demonstrates that even in a bear market, you can make good money. It would seem that sales of hardware wallets should be reduced due to a decline in interest in cryptocurrency due to falling prices, but it turned out differently. Demand for HW devices has increased due to the desire of people to single-handedly own their cryptocurrency and secure themselves by removing it from the exchanges. Which, in general, is not at all surprising.

[Pmalek]

Bear market or not, exchanges should be used for exchanging coins, and non-custodial wallets should be used for their safekeeping. It's going to take some time for people to realize that, but hopefully we are getting there.

Bitcoin holders are moving the coins from non-custodial wallets to custodian wallets where they have their private keys, remember this is not your keys, not your wallet.

It's the other way around. People are moving their coins from custodial wallets to non-custodial wallets. Custodial means that someone else is in control of the private keys. Non-custodial means they aren't, but you are.

It would be interesting to see statistics on sales of hardware wallets from other manufacturers for 2022 and compare with the results of the ledger. Does this company dominate the HW device market in terms of HW device shipments?

Ledger has sold more hardware wallets than any other HW manufacturer in the world. Despite their recent problems, I am sure that trend continued even in 2021-2022. Trezor is probably sitting on #2. Ledger puts a lot of emphasis on marketing and their devices are are cheaper than those of their competitors. If you do a google search for the term "hardware wallet", Ledger's website is the first search result. Trezor, for example, is almost at the bottom on the first page.

[m2017]

Bear market or not, exchanges should be used for exchanging coins, and non-custodial wallets should be used for their safekeeping. It's going to take some time for people to realize that, but hopefully we are getting there.

Bitcoin holders are moving the coins from non-custodial wallets to custodian wallets where they have their private keys, remember this is not your keys, not your wallet.

It's the other way around. People are moving their coins from custodial wallets to non-custodial wallets. Custodial means that someone else is in control of the private keys. Non-custodial means they aren't, but you are.

Despite this bitcoin migration out of custodian wallets to non-custodial wallets, there will still be many people using the custodian wallets. For example, there is a popular direction for those who want to get rich by crypto trading or ordinary users, most often beginners (those who being verified by KYC for the convenience of converting and withdrawing crypto into $ to bank cards).

It would be interesting to see statistics on sales of hardware wallets from other manufacturers for 2022 and compare with the results of the ledger. Does this company dominate the HW device market in terms of HW device shipments?

Ledger has sold more hardware wallets than any other HW manufacturer in the world. Despite their recent problems, I am sure that trend continued even in 2021-2022. Trezor is probably sitting on #2. Ledger puts a lot of emphasis on marketing and their devices are are cheaper than those of their competitors. If you do a google search for the term "hardware wallet", Ledger's website is the first search result. Trezor, for example, is almost at the bottom on the first page.

Their devices may be cheaper, but the quality is very questionable. Housing and display failures are a common occurrence, not to mention that the ledger has repeatedly fallen into incidents with users' personal data. Most of the troubles in Hardware wallets section are dedicated to the products of this company. All this together should have stopped crypto users from using ledger devices, but as we see from this news, it turns out the other way around and a hardware wallets with mediocre quality leads in sales. I see only one explanation: the influence of advertising and the good work of the marketing department with many other shortcomings of ledger.

[Lucius]

Their devices may be cheaper, but the quality is very questionable. Housing and display failures are a common occurrence, not to mention that the ledger has repeatedly fallen into incidents with users' personal data. Most of the troubles in Hardware wallets section are dedicated to the products of this company. All this together should have stopped crypto users from using ledger devices, but as we see from this news, it turns out the other way around and a hardware wallets with mediocre quality leads in sales. I see only one explanation: the influence of advertising and the good work of the marketing department with many other shortcomings of ledger.

As for the quality of the device that I bought a few years ago, I can't say anything bad, because nothing broke and everything works as it should from day one. It is possible that problems in quality and functionality arose as a result of the use of lower quality materials, and possibly a less experienced workforce.

I also thought that Ledger will lose the user's trust after the data leak scandal, but it's obvious that most people don't value their privacy enough to blacklist such a company. And as you say, a good advertising strategy still keeps them on top and probably targets those completely new investors in the crypto world who are probably not aware of anything that happened in the past.

Another fact that works in their favor is that, apart from Trezor, they have no real competition that can offer a product for the masses at a more favorable price, and at the same time gain more trust in the short term. I can only say that my next HW will not be from Ledger.

[PrivacyG]

I also thought that Ledger will lose the user's trust after the data leak scandal, but it's obvious that most people don't value their privacy enough to blacklist such a company. And as you say, a good advertising strategy still keeps them on top and probably targets those completely new investors in the crypto world who are probably not aware of anything that happened in the past.

Comfort over anything else.  Ledger offers some features Trezor does not.  For example, Ledger Live on Mobile.  Plus, Ledger supports many Shitcoins which I suspect the masses are holding.  Maybe if Trezor supported these Shitcoins as well, they could lead the sales.  But when you have everyone holding all sorts of Shitcoins and willing to choose comfort over security and basically anything else that should in theory be prioritized, Ledger of course does a great job at selling their devices.

-
Regards,
PrivacyG

[LoyceV]

Bear market or not, exchanges should be used for exchanging coins, and non-custodial wallets should be used for their safekeeping.

I've seen claims of up to hundreds of millions of Bitcoin users, while there are only 42.5 million funded Bitcoin addresses. If those claims are true, it can only mean the majority of Bitcoin "users" treats Bitcoin as a stock, keeping "their" coins at an exchange/broker.

[RILWAN]

Good to see the thread has been moved to the right section, this information serves as a warning alert to most newbies and even experience Bitcoin investors and users. Nice move ops hope to see further updates as regards records of other hardware wallet companies.

[Lucius]

@PrivacyG, Trezor supports 1816 coins&tokens, but I'm not sure what that number is with Ledger, although some claim that the number is really much higher. If the reason for better sales is just shitcoins mania, then someone is going to be in big trouble when things go downhill. What I like about Trezor is the "Bitcoin-only firmware" option, which is one step higher in security considering possible attack vectors in combination with all coin apps that can be installed on the device.

I also have a small theory that potential customers prefer the Ledger design in the form of a classic USB stick, rather than the design developed by Trezor - which attracted me to buy Ledger at the beginning.

[_BlackStar]

In this scenario, a lot of users will be withdrawing to their personal wallets as well, and hardware wallets are the way to go to most users. Easy to use and safe.

Centralized exchange will never be good and safe to store assets in long term because these are trading platform which will never give full control to asset owners. I think that reason must be the right mindset why holders should not keep their assets long term in a centralized exchange and by far HW is the best storage wallet ever. Every investor and long term holder should know it and they should be aware of it for one thing, not your keys, not your assets.

The bitcoin price crash is not the main reason why demand for HW increase during 2022, but I think this increase can be interpreted as an increase in awareness and knowledge among users ^{[investors and holders]} about why not to store their assets long term in a centralized exchange. There are many reasons why it is increasing, but the first one I think is bitcoin users are starting to know and realize not to choose a centralized exchange for long term storage of their assets.

[Pmalek]

Their devices may be cheaper, but the quality is very questionable. Housing and display failures are a common occurrence, not to mention that the ledger has repeatedly fallen into incidents with users' personal data. Most of the troubles in Hardware wallets section are dedicated to the products of this company.

I think that at least 50-60% of the negative and bad posts and threads there are about Ledger hardware wallets in that sub section come from dkbit98. He probably gets a warm and fuzzy feeling in his belly when he sees something bad about Ledger.
But that doesn't change the fact that they messed up big time and in numerous occasions.

Regarding the build quality of the devices. I can only speak for myself and I don't want to jinx my Nano S, but it has been working fine for many years. And you also have Lucius stating that his Nano X is working just fine. So there you have it. I don't bother myself too much with negative comments on reddit because I have my own experience to fall back on. I am pretty sure that I am not special and that God and other forces are not protecting my Nano S in all these years. There are many like me out there who are satisfied with their products, but you don't hear such voices on reddit. 

[ChrisPop]

Bear market or not, exchanges should be used for exchanging coins, and non-custodial wallets should be used for their safekeeping.

I've seen claims of up to hundreds of millions of Bitcoin users, while there are only 42.5 million funded Bitcoin addresses. If those claims are true, it can only mean the majority of Bitcoin "users" treats Bitcoin as a stock, keeping "their" coins at an exchange/broker.

Interesting fact, but I think education is the main factor driving this phenomenon. Many people don't consider themselves very computer savvy and think that running a wallet themselves is rocket-science. I think the number of people holding Bitcoin in self-custody will increase.

I salute the members of the forum who make their part by promoting the "Not your keys, not your bitcoins" campaign.

[LoyceV]

I think the number of people holding Bitcoin in self-custody will increase.

That brings the next problem: available block space. If 100 million people want to transfer Bitcoin from an exchange to their own wallet, and then make a transaction by themselves, that's 15 GB and takes months to process on-chain.

[yazher]

As the 2022 bear market persists, crypto exchanges announce losses in revenue such as coinbase and binance.
A Hardware crypto wallet firm LEDGER has announced the highest shipment of its hardware wallet in 2022, amid the present bear market the CEO Pascal Gauthier went further during an interview with coin telegraph that the 2022 bear market has a heavy impact on centralized exchanges since users of those exchanges are moving funds off the exchange because of the fear losing they funds and optioning to store them on a hardware wallet where they have control of the private keys this results into the increase in the demands of the ledger hardware wallet presently.
https://cointelegraph.com/news/hardware-crypto-wallet-sales-increase-as-centralized-exchanges-scramble

Looks like people are most likely preparing for long-term investment and at the same time, they want to hold it for themselves and not trust any 3rd party exchanges to secure their funds. This is obviously a courageous act and an intelligent work from this year's investor because, with the news of continuous phishing and hacking going on, you should consider keeping your crypto assets as safe as possible to avoid tragedic loss which is to get victim by those hackers where their techniques are always updated and who knows maybe one day, the exchanges you're keeping your coins with will get the hack.

[Despairo]

After all it doesn't make sense bear market is encourage people to use hardware wallet since there's no relation at all and there's no recent big exchanges got hacked on 2022. What I think is many people fear of those so called decentralized e.g. DAPP are losing all of their tokens after they connected to fake sites and the recent hack where you downloaded random files on discord or telegram, your token will wiped out.

Or this might just a framing news where Bitcoin adoption keep increase, that's why hardware wallet demand are increases because there's always a few people who want to hold his coins on wallet, not exchanges.

[Lucius]

Regarding the build quality of the devices. I can only speak for myself and I don't want to jinx my Nano S, but it has been working fine for many years. And you also have Lucius stating that his Nano X is working just fine. So there you have it. I don't bother myself too much with negative comments on reddit because I have my own experience to fall back on. I am pretty sure that I am not special and that God and other forces are not protecting my Nano S in all these years. There are many like me out there who are satisfied with their products, but you don't hear such voices on reddit. 

As I already wrote, our devices were made in a different time when materials were cheap and easily available, and the demand for HW was probably not like today - so even though they are the same devices, according to everything I could see and read these the new ones seem to be of lower quality. I am not aware if Trezor has such problems, although I have to admit that I can't remember anyone on the forum complaining that they have a broken Trezor, or that something on the HW is broken or doesn't work as it should.

[fiulpro]

As the 2022 bear market persists, crypto exchanges announce losses in revenue such as coinbase and binance.
A Hardware crypto wallet firm LEDGER has announced the highest shipment of its hardware wallet in 2022, amid the present bear market the CEO Pascal Gauthier went further during an interview with coin telegraph that the 2022 bear market has a heavy impact on centralized exchanges since users of those exchanges are moving funds off the exchange because of the fear losing they funds and optioning to store them on a hardware wallet where they have control of the private keys this results into the increase in the demands of the ledger hardware wallet presently.
https://cointelegraph.com/news/hardware-crypto-wallet-sales-increase-as-centralized-exchanges-scramble

I had some coins in binance Earn, with 10% interest rate for some stable coins, and withdrawal everything a few weeks ago.

I am afraid some exchanges will face financial and regulatory problems in this bear market. When the price is falling it is the perfect timing for politicians create new laws against crypto to "protect the population".

In this scenario, a lot of users will be withdrawing to their personal wallets as well, and hardware wallets are the way to go to most users. Easy to use and safe.

I faced immense problems when I was living in India and the exchange suddenly stopped functioning when the government decided to make cryptocurrencies like Bitcoins obsolete and illegal so I had 0.1 BTC but had to somehow sell them at a much lower rate using p2p transactions because the exchange gave a limited to take all your Bitcoins out and unfortunately wasn't able to do it at a much better rate and I thought they are not going to ever allow cryptocurrencies so I didn't look into hardware wallets or paper wallets but then I realized that I should have been more intellectual and had them stored in a hardware wallet since this would prevent such situations from happening indefinitely.