Hardware wallet demand increases in 2022 bear market as exchange scramble

[abel1337]

Keeping your cryptocurrency investments safe is extremely important today, and thanks to the many established organizations that have provided crypto enthusiasts with secure storage options via hardware wallets.
hardware wallets add an extra layer of security to protect your cryptocurrencies from unwanted incidents especially hacking.
it may be in an uncertain bear market situation, and the purpose of a hard wallet is to keep its holdings for a long and safe period of time and also wait until the market returns to bullish.

Good security reasons are one of the reasons why hardware wallets are becoming the choice of cryptocurrency users. Moreover, the increase in bitcoin users (traders, investors) during last year's bull market is the reason why there is an increase in demand for hardware wallets. Looking back at how bad it is to store assets on a centralized exchange should also be a holder's consideration to owning a hardware wallet, so those are some of the reasons that support the increasing demand for these wallet.

Unfortunately I don't have any hardware wallets so far, but still think it's safe to store some of my bitcoins on electrum not connected to the internet. I might have it soon, but maybe not right now.

New crypto users now believe that non-custodial wallets is by far safest than those exchange wallets, It's been proven and believed by crypto enthusiast. On the bull market season, There is anm outstanding number of people who entered and learned about cryptocurrency. Hacks during bull market were significantly high and it makes people curious on how to protect their cryptos. Obviously with simple googling they found out that Hardware wallet is one thing to improve your coins security. This cause massive influx of buyers of hardware wallet. I remembered during the recent bull market, Hardware wallets in my country is having shortage that make sellers increase their prices by 1.5x and people still buying it.

I believe that if your assets worth is at least 10-15x than the cheapest mass produce hardware wallet (Trezor/Ledger) it would be better to buy and have one for the sake of peace of mind. I'm not saying that paper wallet such as electrum is bad actually it's good! but hardware wallet provide way better security.

[Henrobakkara]

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.

I believe you have them both mixed up "With a non-custodial wallet, you have sole control of your private keys, which in turn control your cryptocurrency and prove the funds are yours. With a custodial wallet, another party controls your private keys. Most custodial wallets these days are web-based exchange wallets."
Custodial vs. Non-Custodial Wallets
So you see, where you have the PK and are in control or in charge of your crypto assets is the non-custodian like the Ledger, and Trezor wallets, and some more.

[pawanjain]

Seems like people are accumulating coins at lower prices and transferring to wallets.
This seems like a good news to me because the more number of people hold coins in non-custodial wallets the lesser chances of a dump.
This is directly contributing to a hold mentality and will lead to a pump in the near future.
Also, holding coins in an exchange is bad all together since it more less contributes to panic sell at times of a dump.

[BITCOIN4X]

I believe that if your assets worth is at least 10-15x than the cheapest mass produce hardware wallet (Trezor/Ledger) it would be better to buy and have one for the sake of peace of mind. I'm not saying that paper wallet such as electrum is bad actually it's good! but hardware wallet provide way better security.

Yes, I've considered buying it too. But for the time being I still feel comfortable and safe to store it in electrum which I have dedicated as my long term storage wallet.

For the current price I think Trezor is still quite affordable for me, around $100-$300 in various online stores. So it might be good to have it soon after this. Security is a major issue to consider for anyone looking to invest in the long term, so as you said above, it will make bitcoin or crypto owners feel safe.

[xSkylarx]

That only means that people are more aware now that holding coins on exchange is very dangerous. It also tells that they know this is the best opportunity to accumulate for the next market cycle. I hope that these people buying hardware wallets keep it in a safe place that they won't forget. If they lose access on those wallets like they forgot the recovery phrase, then those crypto will be lost forever.

[Piesel]

Seems like people are accumulating coins at lower prices and transferring to wallets.
This seems like a good news to me because the more number of people hold coins in non-custodial wallets the lesser chances of a dump.
This is directly contributing to a hold mentality and will lead to a pump in the near future.
Also, holding coins in an exchange is bad all together since it more or or less contributes to panic sell at times of a dump.

I believe the ops is nit talking about altcoins storage, the member is talking about the increase in hardware demand. But the most confusing part of this thread is that the record on the article does not include another personal wallet usage,  because that wallet also provides high security that can only be accessed by the owner with the private keys just like the ledger wallets too.

[justdimin]

I think as more and more strict regulations are implemented on Crypto currencies, people will start to look for alternative ways to store their Private keys and they are also getting more familiar with the concept of controlling their own Private keys and not giving that power to 3rd party Exchanges.

The Crypto exchanges are the weak link in the Pseudo anonymity of Crypto currency holdings and people are recognizing that now. We cannot discount the fact that criminals are also buying more hardware wallets to protect their proceeds from criminal activities. 

I agree that there is a weak situation where KYC makes sure you are known and how much you have is known. But that is a bit of a needed thing not because just drug lord or something like that, but for the fact that people do scam others in crypto as well. Like I remember last year when there were fake situations with DeFi projects, there were some scam projects that rug pulled and they had to pay all of that back basically via binance.

Because, they worked on BSC and they had to move their money into fiat and into their bank accounts to claim success. Some of them moved it to Binance and Binance blocked those accounts and found who it was. That's how it works.

[TheNineClub]

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

Kinda makes sense actually, most people are content with the investments they made and are not planning any additional investments/transactions until the market goes up, so they want to store that somewhere where it's much safer than online, and a hardware wallet is a perfect option. But to be honest, a hardware wallet is a must-have from day one.

[Wiwo]

I guess most long-term Bitcoin holders will prefer to hold their Bitcoin in a cold wallet because a hardware wallet remains the most secured wallet to store Bitcoin for long periods. Exchanges are used for buying and selling Bitcoin and other cryptocurrencies but are risky to be used as a personal wallet since exchanges don't give users private keys to the wallet.

[pawanjain]

Seems like people are accumulating coins at lower prices and transferring to wallets.
This seems like a good news to me because the more number of people hold coins in non-custodial wallets the lesser chances of a dump.
This is directly contributing to a hold mentality and will lead to a pump in the near future.
Also, holding coins in an exchange is bad all together since it more or or less contributes to panic sell at times of a dump.

I believe the ops is nit talking about altcoins storage, the member is talking about the increase in hardware demand.

Why do you think that there's an increase in hardware demand ?
It's probably because people either people want to transfer their existing coins to a hardware wallet or buy more coins and then transfer them to a hardware wallet.
All in all they are planning on to hold their coins for a long term which is why the demand in hardware wallet is rising.

But the most confusing part of this thread is that the record on the article does not include another personal wallet usage,  because that wallet also provides high security that can only be accessed by the owner with the private keys just like the ledger wallets too.

What do you mean by personal wallets? If you mean non-custodial wallets then it's because hardware wallets are more secure than non-custodial wallets.

[virasisog]

I guess most long-term Bitcoin holders will prefer to hold their Bitcoin in a cold wallet because a hardware wallet remains the most secured wallet to store Bitcoin for long periods. Exchanges are used for buying and selling Bitcoin and other cryptocurrencies but are risky to be used as a personal wallet since exchanges don't give users private keys to the wallet.

Investors especially those who are into long-term investments already know where to store their funds during this bearish season. They know that it will take time before the market recovers so they prefer keeping their funds safe in hardware wallets where they could access them safely and privately. Scammers are everywhere and the risk of exchanges getting hacked is still possible so better be safe than sorry.

[jrrsparkles]

But we need to be aware now because I see lot of influencers are promoting hardware wallets for cryptos now and some of them are really new so I won't trust them.Its obvious that people will either go for ledger or trezor since they are here for long time so kind of trust but if anyone is buying then make sure its from the official platform and not tampered.

[RealMalatesta]

I believe that if your assets worth is at least 10-15x than the cheapest mass produce hardware wallet (Trezor/Ledger) it would be better to buy and have one for the sake of peace of mind. I'm not saying that paper wallet such as electrum is bad actually it's good! but hardware wallet provide way better security.

Yes, I've considered buying it too. But for the time being I still feel comfortable and safe to store it in electrum which I have dedicated as my long term storage wallet.

For the current price I think Trezor is still quite affordable for me, around $100-$300 in various online stores. So it might be good to have it soon after this. Security is a major issue to consider for anyone looking to invest in the long term, so as you said above, it will make bitcoin or crypto owners feel safe.

Honestly? I just did an exchange approach and I am fine with it. I know it sounds risky and all, but doesn't feel that bad to me. Think about it this way, I put all my money on Binance and it is a great place and if any person would hack into binance, they would be more than powerful enough to hack into mine as well.

Yes, I am leaving my future up to Binance, which is someone else and not me, but that is still fine by me and I do not feel like that's a trouble. All in all I believe that we shouldn't be shocked about what we are doing, just focus on what you feel the most comfortable with and you will get it done. I felt most comfortable with Binance, over all software and hardware wallets.

[romero121]

The Hackers are always finding ways to breach the wallets and take control of the funds. Recently in a thread read about an user losing his funds from trust wallet. Those are connected to the network which makes them easy accessible for the hackers.

We've got different exchanges and different wallets for storing cryptocurrencies. Resembling the real UI of the exchange and wallets there were phising websites. This is the major way through which wallets were taken under control. So, additional precaution need to be taken whenever we enter the wallet. For all these situations hardware wallets can ease the work and give better security for the funds.

Soon some might start creating duplicate trezor/ledger wallets. In all things the additional effort we take will keep our funds secure.

[Toni Ross]

This is evident because wallets are prone to getting hacked and they are also implementing strict policies now. This is good as people are now more aware of the situation.

[Piesel]

What do you mean by personal wallets? If you mean non-custodial wallets then it's because hardware wallets are more secure than non-custodial wallets.

In terms of security hardware wallets provide more security than other non-custodial wallets such as trust wallets and the rest, but a large number of Bitcoin holders who see ledger cold wallet as an expensive wallet to buy will rather store their coins in a noncustodial wallet and have the keys properly protected and never connect to an unsecured network, to avoid data compromised.

[Rufsilf]

This is to note that Bitcoin investment is growing. And these investors are aiming to hold long-term which makes them to decide use hardware wallets for better security.  It was just to know that people have been doing research in regards to holding funds and they found out that this is the solution to hacking incidents that mostly happen to online wallets. I was glad to see this and to know that holders are then able to listen to what is best for them.

[Darker45]

This is good news!

So the call to withdraw coins from exchanges and other centralized platforms have been positively heeded to by a lot of Bitcoin supporters. The call to self-custody, to solely own and control the private keys over one's funds, have been received well by the people.

I don't mind if exchanges are drained of supply. I don't mind if an exchange run is happening. I don't mind if these platforms are losing. What's important is that people are beginning to realize and be free.

[Lucius]

~snip~
I don't mind if exchanges are drained of supply. I don't mind if an exchange run is happening. I don't mind if these platforms are losing. What's important is that people are beginning to realize and be free.

It is definitely better that as many people as possible become their own bank, but in my opinion the problem is that many of them do not understand the difference between custodial and non-custodial storage. The prevailing opinion is that HW are cold wallets, and that crypto funds (private keys) are 100% safe on them, which is far from the truth.

People still don't understand how important it is to make backups and save them safely, and not to share that backup with anyone. Besides, how many times have we heard that users claim that someone hacked their HW, when in fact they became victims of clipboard malware that they didn't even know existed.

[kryptqnick]

It's good that the share of hardware wallets is growing, but if it's due to the bear market and people moving their money for hodling, doesn't it mean the trend can change when things get better on the market? Moreover, can the change fully be attributed to people living exchanges and opting for hardware wallets or could it be that the adoption of hardware wallets is growing, but not at the expense of exchange users?
Wallets are of course much better for storing coins. But if people do trading, they'll likely still use centralized reputable exchanges for that, and hardware wallets aren't a competitor in this regard at all.