Hardware wallets come under the spotlight as this summer has seen many crypto victims. Due to market conditions, Singapore’s cryptocurrency lending platform Hodlnaut joined neighboring lenders Vauld, Celsius, and crypto exchange Zipmex in restricting user crypto withdrawals on August 8. However, as stated in the announcement of Celsius’ withdrawal freeze, the goal of the action was undoubtedly to stabilize liquidity.

Investors were informed immediately that companies had effectively confiscated most of their digital assets while they worked out a recovery strategy. However, the ongoing liquidity crisis has brought to mind some old industry adages, such as “Not your keys, not your coins.”

According to recent data, many people are now paying attention to these phrases. On the other hand, cryptocurrency firms are going bankrupt or receiving bailouts. This occurred after Coinbase, Gemini, and blockchain.com announced significant layoffs. Simultaneously, Solana and Nomad are dealing with yet another multimillion-dollar attack.

Hardware Wallets: Crypto Security is the Main Focus

Hardware wallets are the best solution for long-term cryptocurrency storage because they securely store users’ private keys. They have also been the target of phishing attempts, but unlike software wallets, they are frequently impervious to violent internet attacks.

This year, a Mailchimp mailing database containing Trezor users’ emails was hacked. As a result, they are not completely secure, but hardware wallets can be a far better option than their software counterparts, even if they are not completely secure.

If we are talking about the best “Hardware Wallet,” Trezor or Ledger devices would be wise choices for those looking for long-term digital asset storage that is also extremely resistant to physical tampering.

According to Solana’s engineers, a project in Slope’s multi-wallet apps exposed Solana customers’ private keys to outsiders. The attacker stole $4.5 million from SOL and USDC.

Later, Binance CEO Changpeng Zhao tweeted that those concerned should consider transferring their funds to an equipment wallet. This is why the number of equipment wallet purchases has increased in the aftermath of the wave of bankruptcy, freezing, and hacks.

When Hardware Wallet Sales Slowed Down

Russia has experienced significant growth in the use of Bitcoin hardware wallets this spring in light of the country’s monetary restrictions brought about by external sanctions. A media report indicated that Ledger and Tangem are the most popular ones on the market. Hardware wallet sellers are witnessing a surge in revenue in this bear market as crypto investors remove assets from centralized exchanges.

Glassnode, a company that analyzes the blockchain industry, has said that the bear market of 2022 would be the worst ever. This looks like the case amid events such as the war in Ukraine and rising inflation, coupled with major concerns among centralized crypto exchanges. However, the bear market severely affects not everyone in the cryptocurrency industry.

The enormous amount of cryptocurrency withdrawn from centralized exchanges appears profitable for hardware wallet providers. The CEO of cryptocurrency hardware wallet business Ledger, Pascal Gauthier, said the company’s revenue decreased by roughly 90% during the 2018 crypto winter, but this was not the case in 2019.

Hardware Wallet Sales Are Rocketing

The daily Vedomosti cited statements from the Tangem wallet creator, the store chain M.video-Eldorado, and the Ozon marketplace to assert that during March and April 2022, Russian crypto users tried to buy up to eight times more hardware wallets than in previous periods.

The article describes how the most well-known brands among Russian consumers are Ledger, which sells wallets like USB sticks, and Tangem, whose products are designed to take up the space of a bank card.

M.video Eldorado’s sales of cryptocurrency wallets began in the late autumn of 2021. Presently, it provides a Tangem and a Ledger that may be used with a single currency. The retailer noticed a significant surge in demand for these gadgets in 2022, with first-quarter sales increasing by eight times the previous year’s rate.

There has been a dramatic uptick in demand for Tangem’s gadgets since the beginning of the year. The company partly attributes this to introducing more reasonably priced items. M.video-Eldorado acknowledged that demand was highest in March when the product was originally introduced on the market.

The article also notes that the demand for Ledger wallets has increased nearly five-fold worldwide due to the recent volatility in the cryptocurrency market, the collapse of the Terra ecosystem, and the troubles at crypto lenders like Celsius.

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