If any single location is compromised the users funds can be stolen. This category is how most people have been compromised and lost money in crypto. The Ledger gives the user the freedom to create their own. Because hot wallets run on internet connected litecoin sell devices there is always a risk of theft. In case of theft, damage or loss, the entire wallet can be recreated with the seed. This is another reason we recommend only ordering from the hardware wallet company, and not from a website like eBay. In a sense the Trezor is less high-tech than many other platforms; however, this makes it far less vulnerable. However, because a company holds your private keys, you have no control over your wallet.