Germany Federal Office for Information Security recommends the use of hardware wallets to combat the risk of cryptocurrency theft

Germany's Federal Office for Information Security (BSI) advises cryptocurrency users to use hardware wallets to protect their digital assets.The BSI points out that hardware wallets, which keep users' cryptographic keys in offline storage, are the most secure way to store them. In contrast, storing assets on third-party platforms such as exchanges or using cell phones and personal computers for self-hosting carries greater security risks and is vulnerable to hacking. This recommendation comes against the backdrop of an increase in cryptocurrency theft. in the first half of 2024, the cryptocurrency industry lost nearly $1.6 billion to attacks, including an increase in phishing attacks and ransomware. the BSI emphasizes that the use of hardware wallets can be effective in mitigating these risks.