... I use hardware wallets but they still use a SEED for recovery. A functioning hardware wallet never shows the SEED to any computer.
If the seed is never "shown" to any computer, how do you get the seed in the first place? The hardware wallet has to be connected to the computer... and the seed has to be displayed/output on the computer so you can write it down doesn't it?
At which time, malware that takes stealth screenshots or does desktop video recording could capture your seed right?
HCP -sorry I have been away for a day or so.
NO a Trezor does NOT ever show the recovery SEED to a computer at any time. I initialize my Trezor(s) offline and it goes like this (same for online but I do it offline):
During creation of the SEED list, which is 24 words on a Trezor, the hardware wallet screen displays the SEED words one at a time. You write the words down and proceed to the next word, etc.... until you have the 24 words on a paper list. Then the Trezor allows you to go through the list one more time double checking you have them all correctly written down. These crucial 24 words allow for complete and easy recovery if the hardware wallet is lost, broken, etc.... Mainly, to your point, no the computer does NOT see any SEED ever. This is what makes such a hardware wallet "bullet proof" to malware. When you send coins the same protection isolates the private keys needed to transact from the computer in use.