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--- a/ch01.asciidoc
+++ b/ch01.asciidoc
@@ -200,24 +200,33 @@ Mobile wallet:: A mobile wallet is the most common type of Bitcoin
 wallet. Running on smart-phone operating systems such as Apple iOS and
 Android, these wallets are often a great choice for new users. Many are
 designed for simplicity and ease-of-use, but there are also fully
-featured mobile wallets for power users.
+featured mobile wallets for power users.  To avoid downloading and
+storing large amounts of data, most mobile wallets retrieve information
+from remote servers, reducing your privacy by disclosing information
+about your Bitcoin addresses and balances to third parties.
 
 Web wallet:: Web wallets are accessed through a web browser and store
 the user's wallet on a server owned by a third party. This is similar to
 webmail in that it relies entirely on a third-party server. Some of
 these services operate using client-side code running in the user's
 browser, which keeps control of the Bitcoin keys in the hands of the
-user. Most, however, present a compromise by taking control of the
-Bitcoin keys from users in exchange for ease-of-use. It is inadvisable
+user, although the user's dependence on the server still compromises
+their privacy. Most, however, take control of the Bitcoin keys from
+users in exchange for ease-of-use. It is inadvisable
 to store large amounts of bitcoin on third-party systems.
 
-Hardware wallet:: Hardware wallets are devices that operate a secure
-self-contained Bitcoin wallet on special-purpose hardware. They usually
-connect to a desktop or mobile device via USB cable or
-near-field-communication (NFC), and are operated with a web browser or
-accompanying software. By handling all Bitcoin-related operations on the
-specialized hardware, these wallets are considered very secure and
-suitable for storing large amounts of bitcoin.
+Hardware signing devices:: Hardware signing devices are devices that can
+store keys and sign transactions using a special-purpose hardware and
+software. They usually
+connect to a desktop, mobile, or web wallet via USB cable,
+near-field-communication (NFC), or a camera with QR codes.  By handling
+all Bitcoin-related operations on the specialized hardware, these
+wallets are less vulnerable to many types of attacks.  Hardware signing
+devices are sometimes called "hardware wallets", but they need to be
+paired with a full-featured wallet to send and receive transactions, and
+the security and privacy offered by that paired wallet plays a critical
+role in how much security and privacy the user obtains when using the
+hardware signing device.
 
 ===== Full-node vs. Lightweight
 Another way to categorize bitcoin wallets is by their degree of autonomy and how they interact with the Bitcoin network: