This isn’t strictly a privacy question as a security one, so I’m asking this in the context of individuals, not organizations.
I currently use OTP 2FA everywhere I can, though some services I use support hardware security keys like the Yubikey. Getting a hardware key may be slightly more convenient since I wouldn’t need to type anything in but could just press a button, but there’s added risk with losing the key (I can easily backup OTP configs).
Do any of you use hardware security keys? If so, do you have a good argument in favor or against specific keys? (e.g. Yubikey, Nitrokey, etc)
I suggest having a threat model about what attack(s) your security is protecting against.
I’d suggest this probably isn’t giving much extra security over a long unique password for your password manager:
That said, it might be able to give you more convenience at the expense of slightly less security - particularly if your threat model is entirely around remote attackers - on the convenience/security trade-off. You would touch a button to decrypt instead of entering a long passphrase.