Hardware wallets, like the DAU Key, offer enhanced security and full control over your digital assets compared to hot wallets and custodial wallets.

Hot wallets store private keys on systems connected to the internet, which makes them susceptible to online attacks where your assets could be stolen remotely.

In comparison to hot wallets:

In contrast, hardware wallets such as the DAU Key, securely store private keys offline within the device itself, mitigating the risks associated with digital asset loss due to theft, cyber-attacks, or fraudulent activities. Even if you lose your hardware wallet, you can generally restore access using:

• Backup cards for DAU Key.

• Saved recovery phrases for hardware wallets like Ledger.

  
  

In comparison to custodial wallets:

Depositing digital assets in a custodial wallet, such as those provided by exchanges, relinquishes control over your assets and potentially the ownership of them. If the exchange experiences issues like bankruptcy or halts withdrawals, your assets may be at risk and you might permanently lose them. With a hardware wallet, you retain full ownership and control, ensuring that your assets are always secure and accessible, without relying on third parties.