Why Should You Own More Than One Hardware Wallet?

Here are 6 reasons why you should consider getting more than one hardware wallet in order to better secure your crypto portfolio.

Having a backup of your trusted cold storage wallet could save you a lot of hassle. Today we’re going to talk about why you might want to own more than one hardware wallet at the same time.

You got into crypto and you’ve seen that your portfolio has slowly grown bigger every day. It’s reached the point where you feel like you need to upgrade your security. You have heard about cold storage before and have now decided to give hardware wallets a try.

If you don’t know what a hardware wallet is, read here about how the CoolWallet keeps your digital assets safe. In a nutshell, they are devices that keep your private keys offline and decrease the chances of hackers targeting your portfolio with cyber-attacks.

With the rise in decentralized finance, or DeFi, it’s becoming more important than ever to have proper storage for your crypto assets, since there’s an increased degree of self-custodial responsibility.

We’re talking about hard-earned money, which for many account for a hefty sum and large portion of their life savings. Your crypto funds are important. That’s why you should take your crypto security seriously.

Here are six reasons why you should consider getting more than one hardware wallet:

1. To use as a backup wallet

If your hardware wallet gets damaged, lost or stolen you can still recover your funds with your seed phrase. Having a backup of the wallet that you trust and have been using until now will make this process quick and painless. You save yourself the pain of getting used to a new wallet or waiting for your replacement to arrive in the mail.

Keep your cryptocurrencies safe long-term and ensure a smooth transfer of your assets into your backup. The CoolWallet has an advanced seed recovery system that provides a quick and secure way to transfer your data to your backup wallet.

2. To have a duplicate of your wallet

A crypto wallet key and recovery seed work a bit like that ring in Lord of The Rings. Whoever gets their hands on it, owns all it has power over. As a hardware wallet owner, only you have access to and full control over your crypto. However, hackers and scammers are getting more resourceful, and you may unwittingly expose your recovery seed to a third party (e.g. phishing or if someone discovers your seed on a computer or physical location) or do it under the threat of physical violence (so-called $5 wrench attack) There's also the very real threat that you might lose or damage your card or phone and can't locate your recovery seed. Without the seed, you can't restore your wallet elsewhere. As long as you have working access to any 2 of these three items, you'll be fine, as you can simply transfer your funds to a different wallet if you lose your seed.

Getting a second CoolWallet is playing it safe and being smart. As the saying goes, don’t put all your eggs in one basket. Diversify your risk. If you hold a very large amount of crypto that you don’t want to risk losing access to at any time, you can have your main seed key on both hardware wallets or set up a new wallet address and seed on the secondary one. If you misplace your wallet, you won’t have to stress about setting it up all over again by keeping your duplicate safely in store for a rainy day.

3. To diversify your portfolio

The crypto universe is highly diverse and there are many ways that you can invest in your portfolio. To simplify and have a clear organization with your investments, you can have different wallets for different tokens, one dedicated to BTC and another one for altcoins.

4. One for trading, another one for hodling

A second wallet can also come in handy to make a clear distinction between different functions. The CoolWallet Pro comes with extra features such as staking and in-app NFT trading. To avoid confusion with your digital assets, you can get two hardware wallets, each one with a different purpose.
For example, if you’re planning to save up and pay off part of your debt or mortgage with crypto, you can use one wallet to do your main trades and the other wallet to keep your funds untouched until the day you decide to use them.

5. To introduce someone to crypto

If you’re reading this chances are that you are in it for the long run. Your family and friends may have heard you talk about crypto and expressed interest, but still miss that first step. You could be the one to give them that final push and introduce them to the basics. And what better way to start than with proper crypto storage?
If a special event is coming up and you have no gift, you can always give your extra hardware wallet. Gifting a hardware wallet is also a good way of letting someone you love into a part of your life.

6. Start your journey with crypto with a friend

If you have been thinking about upgrading your security or even starting your crypto journey, why not bring someone along? Your journey with crypto can be lonely and arduous, it could be a good idea to share this experience together. This might be the push that you both needed to kickstart your journey and by purchasing a hardware wallet bundle like the CoolWallet Duo Plus you also get a bundle discount.

Today we have talked about the benefits of getting more than one hardware wallet. In addition to other hardware wallets, the CoolWallet comes with a Secure Element (SE) microchip and recently added in-app support for Rarible and OpenSea, making trading NFTs safer and reducing room for error when transferring your tokens.

The CoolWallet S is a good option with encrypted Bluetooth and a tamper-proof and portable design, but the flagship CoolWallet Pro comes with an industry gold standard EAL6+ SE and is an excellent choice for people that are looking for more advanced options and DeFi opportunities.

Finally ready to get more than one CoolWallet? Order your duo bundle here!

The opinions of the author and information available in this article are shared for educational and entertainment purposes only and should not be considered as financial or security advice of any kind. Always do your own research in order to best protect yourself and your financial assets.