A hardware wallet is a device specifically designed for secure storage of cryptocurrencies such as Bitcoin. It is a physical device that looks like a USB stick and can be connected to a computer.
Hardware wallets are particularly secure because they store the private keys required to manage cryptocurrencies offline. This means they are not vulnerable to hacker attacks or viruses that may be running on a connected computer.
To spend or receive a cryptocurrency, the hardware wallet must be connected to a computer. Once the user confirms the transaction on the device, the hardware wallet signs the transaction with the private key securely stored on the device. The signed transaction is then sent to the cryptocurrency network and confirmed.
Hardware wallets, such as the Ledger Nano X, are a very secure option for storing cryptocurrencies as they offer a high level of security and privacy. However, it is important to note that, as with any cryptocurrency, there is a certain risk of loss with hardware wallets, such as loss or damage to the device.