In the bitcoin space you can find lots of malware. Once installed, it will just wait for you to decrypt your wallet (RAT). A hardware wallet prevents this, because the private key (encryption key) never enters the computer.
The encryption used on both is the same. The difference is in attack surface. With a hardware wallet every password is encrypted and an attacker cannot copy all passwords at once with one master password (keepass). I've seen this happen in a demo of Blackhat USA.
Sure, if your computer is powned you have a bigger problem. But not having a single master key and single file is the more secure way to go imo.
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In the bitcoin space you can find lots of malware. Once installed, it will just wait for you to decrypt your wallet (RAT). A hardware wallet prevents this, because the private key (encryption key) never enters the computer.
The encryption used on both is the same. The difference is in attack surface. With a hardware wallet every password is encrypted and an attacker cannot copy all passwords at once with one master password (keepass). I've seen this happen in a demo of Blackhat USA.
Sure, if your computer is powned you have a bigger problem. But not having a single master key and single file is the more secure way to go imo.