Hardware Wallet vs Software Wallet: Pros & Cons (2025)

Short answer: For long-term savings, use a hardware wallet. For small daily spends, a software wallet is fine.

Hardware wallet — Pros

• Private keys offline (safer against malware)
• Physical confirmation for transactions
• Better for larger balances

Cons

• Costs money
• USB/Bluetooth needed; not as quick as a phone app

Software wallet — Pros

• Free and instant to set up
• Great for small, frequent payments

Cons

• Private keys on a connected device
• Higher risk if your phone/PC gets malware

Recommendation: keep long-term funds on Ledger/Trezor; keep small spending funds in a mobile wallet.