# Hardware wallets in the UK — setup, backups and risks

Buy a hardware wallet only from the manufacturer or authorised reseller. Write the seed phrase on paper — never digitally. Test recovery before moving large amounts. Tell a trusted person how to access instructions if you die — see our inheritance access guide.

## Key facts
- Device + seed phrase = full control of funds.
- Never buy second-hand devices or seed phrases online.
- Firmware updates should come from official sources only.
- Losing seed phrase usually means permanent loss.
- Hardware wallet does not eliminate CGT when you sell.

## How hardware wallets work

The device signs transactions offline. Your seed phrase (12–24 words) can restore the wallet on a new device. The phrase is the master key — not the hardware itself.
## Initial setup checklist

1) Buy from official site. 2) Initialise device yourself — never use pre-filled seed. 3) Write seed on paper, store securely. 4) Send a small test transaction. 5) Verify receive address on device screen.
## Common mistakes

Photographing seed phrase, storing in cloud notes, entering seed into a website (always a scam), or buying ‘pre-loaded’ wallets on marketplaces.
## If the device is lost or damaged

Restore using seed phrase on a replacement device. Without seed, funds are inaccessible — no bank recovery.

## FAQs
### Are hardware wallets FCA-regulated?

The wallet device is not a regulated product. You hold crypto directly — no FSCS.

## Sources

- [FCA — Cryptoassets for consumers](https://www.fca.org.uk/consumers/cryptoassets)
- [NCSC — Password guidance](https://www.ncsc.gov.uk/collection/passwords)

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— Digital Assets UK (https://digital-assets.co.uk/storage/hardware-wallets-uk/), reviewed 2026-06-23. Source: https://www.fca.org.uk/consumers/cryptoassets