Hardware crypto wallets saw a sharp increase in demand in the second quarter of 2026: against the backdrop of the imminent entry into force of the Law “On Cryptocurrency,” Russians began to buy devices for independent and more secure storage of digital assets more often.
According to LLC “MVM,” operating under the brand “M.Video,” the dynamics in the second quarter of 2026 were as follows:
- Sales of devices for secure storage of digital assets — up 107%.
- Monetary turnover in the category — up 92%.
The head of the “Computer Components” category at the company, Fedor Pavlenko, noted that such devices have already formed into an independent category of personal electronics. In essence, a hardware cryptocurrency wallet has become on par with other digital security tools that users buy to protect data and money.
“Hardware crypto wallets are among the safest ways to store cryptocurrencies, since private keys never leave the device and are not transferred to third-party services. Because of this, such solutions are in demand both among experienced digital asset users and those who are just starting to get acquainted with cryptocurrencies and pay special attention to protecting their funds,” noted M.Video.
Why Interest in Cold Storage Has Grown Right Now
Market participants link the surge in demand to several factors at once:
- Preparation for new rules for handling digital currencies.
- The desire to keep assets under personal control.
- The decline in the bitcoin exchange rate and position averaging.
Valery Petrov, a member of the expert council of the Russian Association of Crypto Economy, Artificial Intelligence and Blockchain, explained that a hardware crypto wallet is not for physically storing cryptocurrency. Cryptocurrency remains on the blockchain, and the device creates, stores, and uses private cryptographic keys that give the owner access to assets.
A hot wallet usually works through an app or service with a constant or frequent Internet connection. A cold wallet, on the contrary, stores access to assets outside of constant online access. A hardware wallet is one of the cold storage options: keys remain on a separate device, and transactions are confirmed through it, so the risk of remote hacking is lower than with hot solutions.
The main advantage of this approach is the isolation of the private key from the computer or smartphone. This reduces the risk of remote hacking, especially if the user connects to the Internet from different devices and services. At the same time, encryption and the secure architecture of the gadget itself do not cancel out basic caution.
“Hardware wallets are rightly considered among the most reliable tools for independent storage of digital assets. However, they do not provide absolute security. The critical factor remains the safety of the seed phrase — the backup recovery key. If it is compromised, the physical protection of the device itself will not save the assets. Therefore, the level of security is determined not only by the characteristics of the device, but also by the quality of the user’s operational procedures,” emphasized Valery Petrov.
“It is safer to buy a hardware wallet directly from the manufacturer. Buying secondhand or through a dubious intermediary creates a risk that the device was compromised even before the first activation,” noted Pavel Gudimov.
Against this background, a regular password for an account no longer seems sufficient protection for an investor who stores significant amounts in digital assets. A hardware wallet transfers the key part of control to a separate device, but responsibility for backup phrases and storage rules still remains with the owner.
Types of Hardware Crypto Wallets and How They Work
Hardware crypto wallets differ in format and connection method, but solve one task: they keep private keys separate from a regular computer or smartphone.
- USB devices connect to a computer via cable and are suitable for those who more often work with the wallet from a laptop or PC.
- Smart cards use a separate carrier and can be convenient where a compact format is important.
- Devices with Bluetooth or NFC connect wirelessly and are more often used with a smartphone.
- Mobile hardware wallets are designed to work in conjunction with a phone and an asset management app.
The operating principle comes down to several steps:
- The device creates private keys and stores them in a secure environment.
- The computer or smartphone helps prepare the transaction but does not receive the private key.
- The user checks the transaction details on the device screen and confirms it with a physical action.
- The signed transaction goes to the blockchain through the connected app or service.
How to Choose, Buy, and Set Up a Hardware Wallet
Before buying, it is useful to compare several parameters, not just look at the price or appearance of the device.
- Supported currencies: the wallet should work with the crypto assets you plan to store.
- Security level: PIN code, encryption, transaction confirmation on the device, and seed phrase protection are important.
- Interface convenience: beginners find it easier to start with a clear app and a simple transaction confirmation scheme.
- Compatibility: it is worth checking in advance that it works with the required operating system, computer, or smartphone.
- Price: a device that is too cheap from a dubious seller may cost more due to risks.
- Official support: firmware updates, instructions, and the ability to contact the manufacturer are important.
It is safer to buy a hardware crypto wallet through trusted channels.
- The manufacturer’s website is the most reliable option, especially for the first purchase.
- Authorized resellers are suitable if their status is confirmed by the manufacturer.
- Large marketplaces require additional verification of the seller, reviews, and the device’s origin.
Initial setup usually follows a basic scenario.
- Initialize the device and create a new wallet or import an existing one.
- Write the seed phrase on a physical medium and store it separately from the device.
- Set a PIN code and check that recovery using the seed phrase works correctly.
- To receive funds, copy the address from the app and verify it on the device.
- To send funds, check the amount and address on the device screen, then confirm the operation.
- Update firmware only through the official manufacturer tool.
Popular and Reliable Models: What to Compare
Among well-known hardware wallets, several product lines are most often considered, and the final choice depends on the user’s needs.
- Ledger Nano S/X — a popular line for independent storage; when choosing, it is important to check support for the required currencies, price, and compatibility with the user’s devices.
- Trezor One/Model T — another well-known line of hardware wallets; it is usually compared by supported assets, interface, and official support.
- SafePal and KeepKey — alternative options for those who choose a device based on budget, interface convenience, and the set of supported cryptocurrencies.
Main advantages of hardware wallets:
- Private keys are isolated from a regular computer or smartphone.
- To confirm a transaction, a physical action on the device is required.
- Storage does not require a constant Internet connection.
- The risk of viruses and remote hacking is lower than with hot wallets.
The main disadvantages should also be considered in advance.
- The device needs to be purchased, so this is not a free storage method.
- The wallet can be lost or damaged.
- The seed phrase must be securely stored: without it, restoring access will be difficult.
- Beginners need time to figure out the setup and safe storage rules.
If the device is lost, access to assets is restored on a new compatible wallet using the seed phrase. If there is a risk that someone has seen the seed phrase, it is safer to transfer assets to a new wallet with a new seed phrase.
The Market Is Growing Not Only in Russia
Pavel Gudimov noted that Russian demand coincided with the launch of digital asset regulation, but interest in hardware wallets is also growing outside the country. According to analysts at Grand View Research, the global market for such devices looked as follows:
- 2025: market volume — $560–610 million.
- By 2030: expected annual growth — 24–29%.
According to his estimate, Russian private investors hold 2–3 trillion rubles in cryptocurrencies, and interest in such assets continues to grow. Along with this, the issue of user experience is becoming more acute: people need not only to buy a device, but also to understand how to use it safely.
“The growing interest in hardware wallets also raises the issue of user experience quality, which points to the need for systematic educational programs and improving the population’s financial literacy regarding digital currencies,” noted Pavel Gudimov.
What Cryptocurrency Regulation Changes
Mikhail Uspensky, a member of the expert council on legislative regulation of cryptocurrencies of the State Duma of the Russian Federation and managing partner of the consulting agency Parallax, believes that the new law has become one of the notable drivers of demand. According to him, the devices themselves are not directly regulated as goods, but the rules affect cryptocurrency transfers to such wallets.
“Although the new law does not directly regulate the circulation of hardware wallets as devices in the Russian Federation, it sets restrictions on cryptocurrency transfers to them. All purchases must be made through an account in a digital depository and a licensed intermediary. Crypto assets purchased in the Russian circuit can only be withdrawn to a hardware wallet through an additional stop at a foreign custodian: an exchange, a hot wallet, an account on another centralized platform, but not directly,” explained Mikhail Uspensky.
Evgeny Masharov, a member of the Public Chamber of the Russian Federation, reminded that the owner of a hardware wallet controls the keys and assets themselves. Such a device is not an account in the usual banking sense and does not require a constant Internet connection for storage.
According to him, hardware wallets, non-custodial hot wallets like MetaMask, and addresses on foreign exchanges belong to the foreign circuit — that is, to address identifiers that are not administered by the digital depository. Direct withdrawal from the Russian regulated circuit to a personal hardware or non-custodial wallet is generally restricted. At the same time, storing assets on a cold wallet is not prohibited and does not require transferring them to the Russian circuit.
“There is no obligation to notify the Federal Tax Service or other authorities about the very existence of a hardware crypto wallet or its balance,” emphasized Evgeny Masharov.
Do You Need to Notify the State About Ledger or Trezor
Valery Petrov holds a similar position. He recalled that Russian law recognizes digital currency as property, and the Federal Tax Service indicates the need to declare and pay tax on income from its sale.
The legal significance is not the fact of owning a Ledger, Trezor, or other device, nor the amount shown by the wallet interface. What matters are operations with digital currency and the income that arises as a result of such operations. Separate rules apply to mining.
In addition, the Constitutional Court of the Russian Federation in ruling No. 2-P of January 20, 2026, pointed out a gap in the regulation of informing about ownership of digital currency for those who are not miners or operators of mining infrastructure.
“An ordinary owner of a hardware crypto wallet is not required to register the device or report its balance to the state, but this does not exempt them from tax and other obligations arising from transactions with digital currency,” explained Valery Petrov.
At the same time, the expert drew attention to the fact that from September 1, 2026, the legal regime will change significantly. After this date, market participants will have to take new requirements into account when conducting transactions with digital currencies.
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