Let's assume that your hardware wallet or cold wallet (Trezor, Ledger, Keepkey...) gets lost, misplaced, or worse yet, someone else is in possession of it and is actively trying to get into it. It's a scenario that would have most people sweating. So, let's talk about it: just how f*cked are you?

Here's the deal; how much of a problem this is massively depends on one thing and one thing only, and that's whether or not you are in possession of your seed phrase or not. This is the string of 12-24 words that gives you access to the cryptocurrencies within a wallet. As long as your seed phrase is kept secure somewhere, losing the hardware wallet isn't the end of the world because you can get always buy another one and restore it. I guess the only thing here is you lose the investment on the wallet itself, i.e if you lose a Ledger Nano X, you'd be out $120 USD. Might sting a bit, but I'm willing to bet most of us have far more invested in crypto assets than that. 

Once you buy a new hardware wallet, you can use this seed phrase to reboot your access to your holdings. There are many tutorials out there for how to do this and the process will depend on which type of hardware wallet you're using. One thing to note too is that many people opt to initially have more than 1 hardware wallet for this very reason, if you lose one, you can immediately regain access through a backup wallet. And currently Trezor and Ledger both offer multi-packs of their popular models for a discounted price overall. This may be something to consider if you are worried about losing your hardware wallet or having it stolen. 

However, if you don't remember or have access to your seedphrase, all I can say is this: the kleenex tissues with the aloe vera lotion are the best for crying (personal experience- please don't ask).

So, the moral of the story is:

1. Your seed phrase is far more valuable than your hardware wallet itself. This is the thing you want to be vigilant with in terms of security. 

2. Do NOT under any circumstances, store them in the same place! If someone were to gain access to your hardware wallet, they'd also be able to grab your seedphrase with it and then you'd probably want to cry for a good long while. As with the entire premise behind crypto currency, decentralization is king!! Decentralize your assets when it comes to security.

This is why I would also recommend against storing your seed phrase in any way that is connected to the internet. If you must, do so in an encrypted and secure way. 

Good luck, and stay safe!