Another popular hardware wallet is Trezor. It’s a hardware wallet that could be used to store various cryptocurrencies. This single device allows users to make secure cryptocurrency transactions. If you use Trezor, your transactions are secure even if they are initiated on a compromised or vulnerable computer.
Here’s how Trezor works with Bitcoin.
“The Bitcoin protocol works by sending signed notes of payment across the Internet. These messages (which are referred to as Transactions) are signed using a special algorithm. In order to sign a Bitcoin transaction, you need to have a special key or password. TREZOR holds that key. Since TREZOR’s job is to help you securely sign Transaction messages, you can think of your TREZOR as a modern-day stamp.”
Trezor also has some attractive technical specs:
Here’s a list of supported cryptocurrencies.
Trezor’s features include:
● Password Manager. Users could separately encrypt passwords and sync them to a private cloud.
● Trezor uses GPG to encrypt every document or email.
● Uses password-less login. Users could securely login with just a click of a button using TREZOR Connect.
● 2-Factor Authentication (Users could increase security for their online accounts and identities. Enabling FIDO/U2F and using TREZOR as the security token further protects against potential theft.
There are some key differences between Trezor and other cold storage wallets.
Here’s a look at some of the key similarities and differences.
At this price point, Trezor is slightly more expensive than the Ledger Nano S. However, Trezor is smaller (the Ledger Nano S folds to about the same size as Trezor), and it has a dedicated screen, just as the Nano S does. At the end of the day, Trezor and Ledger Nano S are similar and great for those who plan to travel with their hard wallets. If you are all about open-source development, Trezor is your best bet. However, if you do not care about development, but do care about durability, the Nano S would be a great investment. Trezor is a bit easier to use, and it might be difficult for some users to update firmware on the Ledger Nano S.
Hardware wallets are superior to software wallets in terms of security. If you own a lot of cryptocurrencies, say thousands of dollars’ worth, it makes sense to invest in a wallet. The last thing you would want is to store your digital coins on your online desktop wallet and have your computer stolen or compromised. You would essentially lose all your digital currency. On the other hand, with a hardware wallet, even if you lose your device, you have seed words and all you would need to do is purchase another device to restore your wallet and cryptocurrency.