Trezor Hardware Wallet: Trusted and Secure Bitcoin Storage
Are you looking for the safest way to protect your Bitcoin and cryptocurrencies? Do you want to maximize protection against cyber hacks and hold coins for the long term? I’ve found the Trezor hardware wallet to be the most trusted way for storing and protecting my bitcoins. It’s a perfect fit between security, price, and overall experience. Let’s see why!
Basic Trezor One (Left) with More Advanced Trezor T (Right)
First, What is a Hardware Wallet?
A hardware wallet is a hardware device that stores your private keys offline. Hardware wallets are much safer than mobile wallets, such as smartphone apps, since they do not connect to the internet, except for specific points in time. This way malicious actors don’t have access to our data, and it’s safe.
Hardware Wallets Protect Your Keys
To move coins around the Bitcoin blockchain, we need a wallet with two different keys, a public key and a private key. The public key is essentially our wallet’s address, the one we use to send and receive funds. It’s public and available to anyone. On the contrary, the private key is top secret. The owner of the private keys can create transactions and move coins around.
Therefore, it’s super important to store these private keys securely. Otherwise, bad actors could steal our precious funds. The best way to maximize security is by limiting physical and internet connectivity to the bare minimum. Nothing can beat the haven of a disconnected device. No power, no electricity, no connectivity. Not a single open door for someone to take your private keys. 🙂
What Makes Cold Storage More Secure?
Cold storage wallets ensure that no one can access your funds and other digital assets without physical device access. Another common name of cold wallets in cold storage. We’ll use Bitcoin for this example, but the same applies to many other cryptocurrencies such as Ethereum and much more. Your Trezor wallet needs to connect to your computer only when sending Bitcoin or receiving Bitcoin to get a new address. The Trezor wallet connects using a simple USB cable to your computer, and the setup process is instant.
Does My Trezor Wallet Need To Stay Connected?
No. Once you create a transaction, it’s sent to the blockchain’s mempool and later added to a block. The Blockchain is simply a ledger, and it records transactions and money movements. Your Trezor wallet lets you view and use your funds, but it doesn’t store them. More specifically, it holds a record of keys and addresses. Thus, the moment you dispatch a transaction, you may disconnect your Trezor. The next time it goes live, it will search for relevant transactions and display them. Maintaining your bitcoins in cold storage does not affect it whatsoever.
Who Is Behind Trezor Cold Wallet?
Satoshi Labs is the company behind the Trezor wallet, founded in 2013 by Czech Republic-based Bitcoin enthusiasts. Satoshi Labs has been developing various security solutions for cryptocurrency holders for years. SatoshiLabs are amongst the most praised and recommended companies you’ll find around the crypto ecosystem. Their flagship product is, of course, the Trezor hardware wallet, the most secure hardware wallet supporting over 1300 cryptocurrencies.
Developing A Hardware Wallet: A Rough Start
Marec and Pavel, SatoshiLabs founders, were among the earliest miners in the Bitcoin community, starting in 2010. Unfortunately, they experienced multiple devastating hacks by malicious intruders, stealing tens of thousands of coins from their pool. They used to store all of their coins on live servers back in the days, being at risk of another hack. They knew there must be a way to separate private keys to a different, more isolated environment. Long story short, they prototyped a bit and came up with the first Trezor One to go live! Later in 2018, they launched the improved Trezor Model T, supporting more cryptocurrencies and including a small touch screen.
What is Special About the Trezor Hardware Wallet?
The Trezor hardware wallets include many security features to maximize security. In addition, their code is open source, available on Github, maximizing trust and safety. Trezor’s biggest competitor is currently Ledger Nano, but for me, some of the Trezor supported features make me like this product much more:
Easy To Use for Beginners and Experts
Both first-time Bitcoiners and expert users use the Trezor wallet. It’s intuitive, easy to set up, and comes with an excellent UI/UX experience to help you ramp up faster. When you get a new wallet, you go through a simple installation process, connect to your computer using USB, and you’re ready to go. It requires no technical knowledge whatsoever.
If you lose your Trezor, or it breaks down for some reason, this backup phrase will save you. First, get a secret, 12 – 24 word sequence when setting up the device. Then, in case you lose it, you can recover your device using the passphrase.
Shamir Backup for Recovery Seed (Multi-Part Backup)
Imagine your 12 – 24 recovery words are stolen or lost. What do you do? How can you protect again that? Shamir backup lets you split your recovery passphrase into parts (shards) and secure yourself against recovery frauds and loss. First, decide how many shards you want (a min. of 3) and how many will be needed to recover.
For example, split the backup key for your Trezor wallet into five parts, and recover it with any 3 of the 5. This way, if something happens to one of the parts, you’re protected. This type of backup is available only for Trezor T, not the Trezor One.
Define a pin code password to securely login into your Trezor wallet. You will now be able to do anything with the device unless you physically enter a pin code (for model T) or once you connect it to your computer.
What Coins Can Be Stored On Trezor?
Trezor is equipped with the ultimate cryptocurrency hardware to keep your crypto and digital assets secure. The Trezor Model One has support for over 1000 coins, while the Trezor model T has even more outstanding support. These Trezor support coins trivially include Bitcoin (BTC), Litecoin (LTC) as Ethereum Classic (ETC), and many more exotic altcoins.
The device includes software and firmware that are secure and modular, enabling the support for this wide variety while also providing security updates along the way. In addition, Trezor supports some coins and tokens through the web interface exclusively, while others only use the desktop client.
Trusted, Well Built Hardware
The one thing that worries me most about electronics, even with smartphones, is how long they will last. My horizon with this Trezor wallet is years, and I want to access it in 2030. How can I trust it? Trezor created their wallet for resiliency and has been out in the market for over seven years. They periodically release firmware and software and firmware updates and well maintain the product.
What Happens If My Trezor Stops Working?
We’re dealing with electronics, after all, and everything can break down. So make sure always to protect your wallet backup keys. Then, in case your Trezor wallet breaks down, get a new Trezor wallet, recover your device from your backup, and you’re back alive! You can even make a test recovery to make sure you understand how to do it.
Where is the Backup Code stored?
The backup for the Trezor wallet complies with the BIP39 international standard for wallet backups. Read more about the secure backup process to understand how it works. In addition, because the seed follows an international standard, you can potentially recover your wallet at another standard wallet provider. This means that if your Trezor is corrupt or even stolen, there’s a way to recover the keys using the seed and a different wallet provider.
What if Trezor Goes Bankrupt or Disappears?
As the backup phrase follows the BIP39 standard, it’s possible to recreate the wallet using the seed phrase at a different provider. This is a crucial part when choosing a hardware wallet. Make sure you never rely on the wallet provider but instead on a well-known and standard protocol.
Open Source Code For Transparency
Trezor maintains an active repository on GitHub, where you can see many of their projects. You can go over the firmware stored on your Trezor device, their third-party integration called Trezor Connect, and even check out their Desktop client called Trezor Suite. They have an extensive developers guide, which you can review if you’re interested in the technology behind it.
Maintaining an open-source culture is fundamental in the Bitcoin ecosystem. It’s increases transparency and trust, showing they have nothing to hide while also letting other people participate and suggest improvements.
Use Trezor Hardware Wallet For Better Security
Check out the Trezor Wiki page for more information regarding security and best practices for cold storage. In addition, they offer an easy how their easy user interface and open source software and firmware for trust and transparency.
As with anything in the crypto world, you have to be cautious and not fall prey to fraud. Once your hardware wallet connects to a computer, you must always connect using the official site. Ensure that there are no gaps for someone else who steals access information about your account or funds (especially if they’re stored online). Safety First!
Summing Up: Trezor Hardware Wallet
When it comes to protecting your Bitcoin and cryptocurrencies, there are a lot of options out there. But the most trusted way I’ve found for storing my coins is with the Trezor hardware wallet. It’s easy to use, affordable and offers top-notch security that provides peace of mind. There’s nothing like knowing your assets are protected against cyber hacks.
If you’re looking for an effective solution between price, experience, and security – this is it! You can purchase one today by clicking here!