The hardware wallet sector of the crypto industry is growing faster than expected and outpacing crypto exchanges. This information was gleaned from data related to the industry patterns. Here are some interesting statistics –revenues for the global crypto sector will grow by a CAGR of 13% by 2028. During the same period, the hardware wallet sector will grow by 27%.
As the bears have a strong hold on markets, this persistence has led to an acceleration of the wallet industry. Many crypto exchanges are struggling to keep up with daily operations. This report was released to the public July 21st. The idea of hardware wallets has captured investor imagination recently especially since many crypto exchanges are cutting down on access to funds. This limitation on access is due to a number of issues that the exchanges have to deal with.
Another important reason for using cold/hardware wallets vs. using crypto exchanges is access to private keys. Users cannot access exchanges as they don’t control private keys and thus don’t get to control funds. In contrast, hardware wallets cannot be manipulated externally and cannot be frozen. Of course, these wallets are open to the same risks – loss, destruction, or theft.
Experts suggest on relying on either one completely – it is not a good solution. Though hardware wallets are making hay during these tough times, it is an investor’s job to learn how to keep his/her money safe. Storing money entirely on an exchange is risky, as it was made evident from the recent crypt debacle. Diversifying storage is the only way to reduce risk. Of course, hardware wallets will become more popular, and investors can hold their own keys.