FAQs Archive - Satochip

Q: 1. What is a crypto wallet?

A crypto wallet is like your leather wallet. If you want to hodl Bitcoin, Ethereum, NFTs or any other cryptocurrencies then you need a wallet to store them. When you set up a wallet, you automatically get a pair of cryptographic keys; the public key and the private key. These keys enable you to authenticate and validate transactions, or view your account balance. There are two types of wallet: hardware and software. A software wallet will store your pair of keys locally on your phone, tablet or computer, while the hardware wallet will store them in a highly secure chip.

Q: 2. How does a crypto wallet work?

The materialization of cryptocurrency is represented by a pair of cryptographic keys: the public key and the private key. Once you have these keys, you are the one and only owner of your cryptocurrency. The public key is comparable to your bank account number. It enables you to receive cryptocurrencies. You can share it to third parties without compromising the security of your wallet. The private key, on the other hand, is strictly personal. It allows you to spend the coins and tokens in your wallet. It must never be divulged, and must be stored in a secure element.

Q: 3. Hot wallet vs Cold wallet, what to choose?

There are two types of wallets: hot and cold. The hot wallet is a software application installed on your computer or smartphone and connected to the Internet. Most often free of charge, this type of wallet is ideal for everyday handling. It's convenient, mobile and easy to use. But the threat is real! Your private keys are stored locally on your equipment, accessible to viruses and other Internet threats. Your cold wallet, on the other hand, is a dedicated, offline device. Your private keys are isolated in a specially designed piece of hardware, called the Secure Element. Satochip is a cold wallet, also known as a hardware wallet. The chip acts as a secure element, protecting your private keys from online threats.

Q: 4. Do I need a hardware wallet?

You've probably heard this " not your keys, not your coins ". Indeed, as long as you're not the sole custodian of your private keys, your cryptocurrencies probably don't belong to you. When you leave your cryptocurrencies on an exchange platform, you're delegating your wealth to that platform. It can, at any time and arbitrarily, cut off access to your account, depriving you of your assets. When you use a hot wallet, such as a web extension, your private keys are stored on your computer. They are therefore vulnerable to Internet threats. So yes, if you value your cryptocurrencies, use a hardware wallet to store your private keys offline, in dedicated equipment.

Q: 5. Why open source matters?

There are many phrases you'll come across on your Bitcoin journey, one of them is " Don't trust, verify! ". Bitcoin is open source. The open source nature of a solution gives power and independence back to people. Satochip is driven by this noble mission and offers fully open source solutions. Everyone is welcome to study and verify the content. Open source matters! Don't trust, verify!

Q: Is it like a credit or debit bank card?

Nope… The Satochip hardware wallet looks like a bank card but it’s not a credit nor a debit card. The chip, wich acts as a secure element, is loaded with the Satochip quality code 🔗to provide hardware wallet functionality. Of course you can use your Satochip hardware wallet to spend your funds like any other wallet. But not at your local shop.

Q: May I use my Satochip card to buy things at grocery?

No you can’t. The Satochip card is a hardware wallet. Not a debit nor a credit card.

Q: May I use my Satochip card to store multiple cryptocurrencies?

Yes, it's possible! Satochip supports a large number of blockchains, coins, tokens and NFTs that can be stored simultaneously on your card. Check the list here 🔗.

Q: Does the Satochip card need any specific drivers?

Yes and no. To use the Satochip card, you will need a chip card reader or a NFC reader. The card itself does not require any specific drivers. We have tested a wide variety of card reader on the market and all of them accept the Satochip hardware wallet but we cannot affirm that all chip card readers are suitable. That’s why we are selling our own smart card reader which is fully tested with our Satochip cards. Get yours on the webshop 🔗.

Q: Does Satochip generate new addresses after each spending?

Yes. The Satochip hardware wallet is fully BIP32🔗 / BIP39🔗 compliant. That means a new address is generated after each spending. From the user perspective, it works transparently, except that the keys are stored securely within the chip.