Which best for long term investment? Hardware wallet or Software wallet .

[libert19]

Hardware wallet, it gives unparalleled peace of mind compared to software wallets. But then again, it will take away 1 part of your holding if you were to buy it right now. So stick to software wallet like muun for time being, once savings are grown enough, purchase HW.

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[taufik123]

Hardware wallet, it gives unparalleled peace of mind compared to software wallets. But then again, it will take away 1 part of your holding if you were to buy it right now. So stick to software wallet like muun for time being, once savings are grown enough, purchase HW.

That's for sure, but it's also important to keep your Hardware wallet safe. Hardware wallets are safe from some hacks but not from careless use.
Keep the phrase seed in a place that only you know and make sure it stays safe.

And for Software wallets such as the muun wallet you are referring to, it is only one of the choices of several Bitcoin wallets.
There are several widely used Bitcoin wallet recommendations such as Electrum and Bluewallet.
and for now, I use 1 Hardware wallet and Electrum for use on Desktop and Android.

[satscraper]

As a new investor I am very curious to know in which wallet my bitcoins will be safe.

For long term I would stay on Foundation Passport hardware wallet.

It is open sourced in both way - software and hardware.

Besides it is airgapped in both way by using QRcode  and/or industrial grade  microSD card.

And last but not least  under its hood are the  hardware components of the highest quality.

Passport is a bit expensive compared with other HW wallet but you know what you pay for.

[Flexystar]

I mean, think about it — why would people spend money on a hardware wallet if a software wallet is more secure? Obviously hardware wallets are better for 99% of people.

But don't take the word from me, go do some reading and learn for yourself.

https://cryptosec.info/wallets
https://bitcointalk.org/index.php?topic=1631151.0

Both wallets are safe but its about "which is safer". I would also vote hardware wallets as the best one. Whenever it comes to the software wallet there are many human errors are possible. You could end up losing your private keys to pass phrases over phishing and anonymously you could compromise the wallet right on spot.

Ideally speaking when you access the hardware wallet it is the best known fact that you select the words by operating with physical keys, and all the data is stored on the chip inside. You are basically extra layer away from the internet environment since you are not really surfing the web directly.

In case of hardware wallet: (for long term investment)
You could initiate cold storage
You could save the passwords, passkey, mnemonic phrases somewhere safe and forget about them.
You can safely keep your hardware wallet locked up waiting for the time to open
You won't access the bitcoin immediately and could increase your chances of saving the bitcoins for longer than expected.

In case of software wallet, I am really scared. I can end up losing the wallet to obvious hacks for sure.

[Pmalek]

I would also vote hardware wallets as the best one. Whenever it comes to the software wallet there are many human errors are possible. You could end up losing your private keys to pass phrases over phishing and anonymously you could compromise the wallet right on spot.

Nowadays, we don't need to bother about individual private keys. With HD wallets, all we care about are the seed phrases. Private keys are accessed in the background during transaction signing but it's not something you as a user need to worry about. You are supposed to make seed backups with both software and hardware wallets. The dangers of phishing and social engineering scams are threats to both. A hardware wallet can't protect you from making mistakes and revealing your seed or entering it in a phishing site.

[yudi09]

...
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but right now I don't have any money to buy hardware. So I suggest using a software wallet.  However, I have no idea which wallet to use will provide the most security. So tell me a bit about what is a strong and security complete wallet?

Software wallet are also not bad to serve as long-term storage as long as we can use them properly.
There is something we need to take good care of and that is seed phrases.
For software wallets, use one that can connect to a hardware wallet like Electrum.
If you are not interested in using Electrum, there are still several types of software wallet that can be used that have proven their use so far in storing assets.

Hardware wallet are also quite good if used as long term storage wallet. The price for one hardware wallet is not expensive and still affordable.
Two months set aside a little money, already got one piece of hardware.

[Aikidoka]

Nowadays, we don't need to bother about individual private keys. With HD wallets, all we care about are the seed phrases. Private keys are accessed in the background during transaction signing but it's not something you as a user need to worry about. You are supposed to make seed backups with both software and hardware wallets. The dangers of phishing and social engineering scams are threats to both. A hardware wallet can't protect you from making mistakes and revealing your seed or entering it in a phishing site.

The risk remains whether you are using a hardware or software wallet. It all depends on the user's behavior and how wise they are when dealing with their wallet. The seed phrase is the most important thing and should be everyone's top priority. It should be stored offline and in a safe place. As you mentioned private keys are generated in the background of the wallet during transactions, so we don't need to worry much about them. However, what matters is the safe environment when you're trying to use your bitcoin.

Regarding the OP's topic, the best long-term investment is undoubtedly a hardware wallet, as it offers a higher level of security compared to a hot wallet. However if a HW is not affordable, you can still use Electrum wallet as a cold wallet on an air-gapped device. This method can be as secure as using a HW as far as I know.

[sheenshane]

Software wallet are also not bad to serve as long-term storage as long as we can use them properly.
There is something we need to take good care of and that is seed phrases.

IMO, both are vulnerable to risk whether that's a hardware wallet or a software wallet, as long as you're connected to the internet, you're prone to cyber attack.  Just like using Electrum, how many reports have been a victim of malware attacks even if they're knowledgeable enough about this wallet?  However, both software wallets and hardware wallets have their advantages and disadvantages, and the best choice depends on our individual needs and preferences.

But if you're going to ask me for storing Bitcoin or other cryptos in the long term, I prefer to choose a hardware wallet and spend a little amount on it.  These hardware wallets typically come with advanced security features like two-factor authentication and PIN codes and didn't leave any footprint on the device where you're connected at.  If you're storing a large amount of crypto in long-term investment and prioritize security, a hardware wallet may be the better choice.

[Z-tight]

IMO, both are vulnerable to risk whether that's a hardware wallet or a software wallet, as long as you're connected to the internet, you're prone to cyber attack.  Just like using Electrum, how many reports have been a victim of malware attacks even if they're knowledgeable enough about this wallet? 

You're correct that any wallet connected to the internet is vulnerable to hacks, but that is why a hardware wallet is the most secure type of wallet because your keys are offline and are never connected to the internet. As for Electrum, it is a great software wallet, especially because it is open source, but when it is used online by users who lack great operational security, they can easily lose their funds stored in it, that's why for large sums of money, Electrum should be used in an air-gapped device with no connection to the internet ever.

But if you're going to ask me for storing Bitcoin or other cryptos in the long term, I prefer to choose a hardware wallet and spend a little amount on it.  These hardware wallets typically come with advanced security features like two-factor authentication and PIN codes and didn't leave any footprint on the device where you're connected at.  If you're storing a large amount of crypto in long-term investment and prioritize security, a hardware wallet may be the better choice.

Hardware wallets are not secure because of this features you mentioned, software wallets also have features like this, Electrum for example has the 2fa feature, multisig, pin, etc, hardware wallets are the most secure because the keys are stored offline, so it is impossible for a hacker to get your funds, except you lose your seed phrase backup.

[yudi09]

IMO, both are vulnerable to risk whether that's a hardware wallet or a software wallet, as long as you're connected to the internet, you're prone to cyber attack.  Just like using Electrum, how many reports have been a victim of malware attacks even if they're knowledgeable enough about this wallet?  However, both software wallets and hardware wallets have their advantages and disadvantages, and the best choice depends on our individual needs and preferences.

But if you're going to ask me for storing Bitcoin or other cryptos in the long term, I prefer to choose a hardware wallet and spend a little amount on it.  These hardware wallets typically come with advanced security features like two-factor authentication and PIN codes and didn't leave any footprint on the device where you're connected at.  If you're storing a large amount of crypto in long-term investment and prioritize security, a hardware wallet may be the better choice.

It is true that we are willing to spend a little to buy a hardware wallet in order to get advanced security to store long-term investment assets.
It is also not uncommon for people to still use software wallets such as the Electrum wallet as a place to store assets for several years and are still safe today.
Like doing it offline from opening Electrum to the stages of sign a transaction.

I want to say that no matter how good the security is in a wallet, including the type of hardware wallet, it will not work properly if it is not used properly.

[Pmalek]

I want to say that no matter how good the security is in a wallet, including the type of hardware wallet, it will not work properly if it is not used properly.

Luckily with hardware wallets, there is very little you need to do. They are very convenient and newbie-friendly. I am talking about the two most popular brands. The airgapped ones require a bit more work like moving signed/unsigned transactions to SD cards, via QR codes, etc.

Other than that, your job is to ensure you use a genuine software, send and receive to the correct addresses, and pay appropriate fees. Protect your seed and don't get phished. The latter is more about being generally cautious and using common sense than requiring technical skills to operate a hardware wallet.

[Agbe]

Op you have said it all that you don't have money to buy hardware wallet, so definitely you must use software wallet and if I will advise, I will tell you to use Electrum Wallet because it is well secured and reliable. Keeping, storying and investing bitcoin in an exchange platform is not advisable because anything can happen in the exchange and your coins will be gone forever. Either the platform might stop operating or hackers attacked the site and all your investment is gone. Therefore send your coins from the exchange to a open source wallet.

[bettercrypto]

Well, for me, storing bitcoin is really better for long-term investment using Hardware wallet, because it can store your private key offline even if it's not connected to the internet, so it can't be hacked by a hacker.

       Because if a software wallet is used, it is the opposite of a hardware wallet because it can be used online, which is a bit prone to hacking and it can also store your private key online. But since there is nothing to buy, as most people have said here, Electrum is one of the main cold wallets that are good to use and I have been using it until now in my few years in this industry.

[m2017]

Well, for me, storing bitcoin is really better for long-term investment using Hardware wallet, because it can store your private key offline even if it's not connected to the internet, so it can't be hacked by a hacker.

       Because if a software wallet is used, it is the opposite of a hardware wallet because it can be used online, which is a bit prone to hacking and it can also store your private key online. But since there is nothing to buy, as most people have said here, Electrum is one of the main cold wallets that are good to use and I have been using it until now in my few years in this industry.

Until recently, I also thought so and believed that using a hadrware wallet is the most secure way to store crypto long-term, but in light of recent events, I have very serious concerns and doubts. Yes, a HW device can protect you from hackers and other intruders online, but how can you protect yourself from an unscrupulous manufacturer, like a Ledger? No way. Here the owners of wallets find themselves in a trap, trusting false stories about security. Therefore, there is only one way to avoid this - never use hardware wallets. At least those companies that have trampled their reputation into the dirt. Personally.

Software wallets are also not an ideal solution and have their drawbacks. This is unavoidable. If you follow all the precautions, then these wallets can be used quite normally.

So the question arises for any owner of cryptocurrencies: either trust the hardware wallet's manufacturer, or trust yourself and your skills in organizing the security of your crypto wallet.

[Yamane_Keto]

Therefore, there is only one way to avoid this - never use hardware wallets. At least those companies that have trampled their reputation into the dirt. Personally.
So the question arises for any owner of cryptocurrencies: either trust the hardware wallet's manufacturer, or trust yourself and your skills in organizing the security of your crypto wallet.

There is always a middle ground as some hardware wallets are open source, you can buy the components and build it yourself and the code is open source, not all hardware wallets are that bad, even Ledger they haven't been hacked or know your private key, the wallet is still secure and no Scam has been reported But the company's continued lying makes future copies more likely to have backdoors.

Software wallets are also not an ideal solution and have their drawbacks. This is unavoidable. If you follow all the precautions, then these wallets can be used quite normally.

Good Software wallets are open source and well reviewed. With a little bit of knowledge you can build relatively secure cold storage, the more you know the more secure you are.

[Pmalek]

Well, for me, storing bitcoin is really better for long-term investment using Hardware wallet, because it can store your private key offline even if it's not connected to the internet, so it can't be hacked by a hacker.

It's time we change this narrative because it turns out that it's not completely true. What we considered as cold storage, or almost as good as cold storage is actually not as good as previously advertised. The data on secure element chips can be obtained and shared online. By sharing your private keys with other companies and undergoing KYC, there is a risk of someone confiscating your crypto or that the information gets hacked, stolen, or sold. Hardware wallets with secure elements may or may not protect your private keys.

[Z-tight]

It's time we change this narrative because it turns out that it's not completely true. What we considered as cold storage, or almost as good as cold storage is actually not as good as previously advertised. The data on secure element chips can be obtained and shared online. By sharing your private keys with other companies and undergoing KYC, there is a risk of someone confiscating your crypto or that the information gets hacked, stolen, or sold. Hardware wallets with secure elements may or may not protect your private keys.

I agree with changing the narrative after this Ledger mess, but when it comes to cold storage, hardware wallets are the easiest to use, especially for people that are not too technical, this is the reason why i recommend hardware wallets to newbies. The other type of cold storage is setting up a personal air-gapped wallet, which is more complicated and easier for people to make a mistake or set up in an unsafe enviroment. I will still recommend newbies to look for good hardware wallets other than Ledger, until they can securely set up their own air-gapped wallet in a safe enviroment.

[tabas]

It's time we change this narrative because it turns out that it's not completely true. What we considered as cold storage, or almost as good as cold storage is actually not as good as previously advertised. The data on secure element chips can be obtained and shared online. By sharing your private keys with other companies and undergoing KYC, there is a risk of someone confiscating your crypto or that the information gets hacked, stolen, or sold. Hardware wallets with secure elements may or may not protect your private keys.

I agree with changing the narrative after this Ledger mess, but when it comes to cold storage, hardware wallets are the easiest to use, especially for people that are not too technical, this is the reason why i recommend hardware wallets to newbies. The other type of cold storage is setting up a personal air-gapped wallet, which is more complicated and easier for people to make a mistake or set up in an unsafe enviroment.

Air gapped is also a good one but you know that this is for those that are coming from a newbie that have found something interesting and wanting to learn more, not that advanced but more knowledgeable and still, hardware wallets are the best.

I will still recommend newbies to look for good hardware wallets other than Ledger, until they can securely set up their own air-gapped wallet in a safe enviroment.

I'll also still do recommended hardware wallets but it's not going to be limited anymore to Ledger variants but will have them think and make their own research for the other choices that's also know which can be found on: https://bitcoin.org/en/choose-your-wallet?step=5&platform=hardware

[Charles-Tim]

Hardware wallet, it gives unparalleled peace of mind compared to software wallets. But then again, it will take away 1 part of your holding if you were to buy it right now. So stick to software wallet like muun for time being, once savings are grown enough, purchase HW.

If he is able to create an airgapped wallet, it is the best for investment. Another alternative which how create it is the same as airgapped wallet is a paper wallet. He is not spending it for a long time, so he will be good with any of the two.

For a very small amount that he can afford to lose he should know that online wallet are not safe like cold wallets. He also needs to know that he needs to be security conscious and not doing what can make his device vulnerable to hack.

I agree with changing the narrative after this Ledger mess, but when it comes to cold storage, hardware wallets are the easiest to use, especially for people that are not too technical, this is the reason why i recommend hardware wallets to newbies.

Recommend paper wallet and airgapped wallets to newbies and let them know the pros and cons. With both, the bitcoin user will be able to know you do not need any hardware wallet before you can hold bitcoin securely offline. Then it is also good to recommend hardware wallet, also letting them know about the pros and cons. But it is worth learning about airgapped devices and how to avoid hacks if not going for altcoins.

[Dr.Bitcoin_Strange]

Hardware wallet, it gives unparalleled peace of mind compared to software wallets. But then again, it will take away 1 part of your holding if you were to buy it right now. So stick to software wallet like muun for time being, once savings are grown enough, purchase HW.

You have quite a lot of good suggestions, so I will just have to support what @Libert19 said.

There are lots of malware attacks on most of the online device we use, so the best way to keep your assets more secure is to store them in an offline wallet, like the hardware wallet. It will give you peace of mind that you cannot get easily hacked because your hardware wallet is offline. When it can get hacked, is if you mistakenly misplace your seed phrase, or you lose it. But if you are using a software wallet, that's to say you will always use your device to do some online stuff and download some software online, and those can be a threat to your security.

Go for a hardware wallet since you have the intention to hold your Bitcoin for a long time, so that if you are doing some internet stuff with your phone or PC, you wouldn't have the fear that your asset can get hacked due to some website you browse.  But since you don't have any enough fund now to do so, be very mindful of the sites you visit, the files you download and the links you click. Be very cautious mate.

Cheers 🥂, Dr.Bitcoin_Strange👺👺