Yes, hardware. For the most important services as additional security layer.
Discussion
So you're using something like a Yubikey for 2FA, not a "full" passkey as supported by Google / Apple / 1Password etc?
A Yubikey can be used as a passkey (FIDO2 / Webauthn) instead of a password. In my experience most websites use the "security key" as a second factor in addition to a user/password login.
It can also be used to store/generate OTP (one time passwords) for 2FA with an alternative authenticator app on a phone/desktop.
I use both methods.
OK, I am starting to understand. Needed to read up on passkeys.
https://www.passkeycentral.org/introduction-to-passkeys/how-passkeys-work
I'm not yet sure if it is a good idea to skip 2FA when a passkey is used (Github does this for example). Also having your private passkey synced into Apple's iCloud (or similar) worries me a bit but I need to experiment some more to form an opinion.