Hardware digital wallets offer enhanced security over hot wallets, and greater control than custodial wallets.

In comparison to hot 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. On the other hand, hardware wallets such as DAU Key, securely store private keys offline within the device itself, mitigating the risk associated with digital asset loss due to theft, cyber-attacks, or fraudulent activities. Even if you misplace or lose your hardware wallet, you are generally able to restore access, either through:

• Backup cards for DAU Key

• Saved recovery phrases hardware wallets like Ledger

Losing a DAU Key card does not mean you lose your assets; you can quickly and effortlessly recover access to your assets using its backup card. In comparison, if a hardware wallet like Ledger is misplaced, reinstating access to your assets requires importing the saved recovery phrase (also known as a "seed phrase") into a new wallet.

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. Should the exchange declare bankruptcy or halt withdrawals, you might permanently lose your assets. Conversely, with a personal hardware wallet, you retain complete control and access to your assets, free from any interference by third parties.