What is the difference between the KeepKey and a USB drive or memory card?

When you insert a USB drive or memory card into a computer, the computer can immediately access everything stored on it. KeepKey communicates with a connected computer using a limited protocol, and KeepKey never reveals its private key. This limited protocol only allows for transaction requests, which must be manually approved using the device’s confirmation button before KeepKey will sign it.

What is the difference between the KeepKey and an encrypted wallet stored on my computer?

An encrypted wallet stored on your computer is safe from malware and viruses if the password you chose for encryption was strong. However, once you attempt to decrypt your wallet to spend bitcoins your private keys are immediately exposed. With KeepKey, your private keys are protected from malware and viruses, and you can also safely make transactions without exposing its private keys.