Bitcoin Forum

I'm trying to understand how these work.  From what I understand so far the Trezor or KeepKey contain a "private key" that's used to sign a transaction.

I watched a couple of videos but most just show how the devices operate and don't give a high level view of what each actually does.

Can someone explain to me how this works in a few more words.  Does the Trezor or KeepKey generate a wallet address for example.  Also I understand if I lose either then I can restore if I know a set of words.  But how does that actually work?

Here (http://doc.satoshilabs.com/trezor-user/index.html) is a link to the Trezor User Manual. You should read it carefully.

Those hardware wallets still require a wallet on a connected computer in order to function. They can interface with certain wallets, you will need to check their websites to find out which ones. Those wallets create the transaction and then sends it to the hardware wallet for you to authorize it to sign the transaction. Then the transaction is sent back to your computer and broadcast through your computer.

The hardware wallets generate the addresses. The addresses are generated deterministically from a seed, meaning that the same algorithm is always used and when using the same seed, the same set of addresses are produced. The recovery words are just a representation of that seed.

rcscholey

If I can figure out how to use a Trezor, you can too.  :)

I may be explaining this poorly, but the Trezor needs to be hooked-up to a computer, but the "real work" (and, hence the secure functions) are done within the device itself.

Once you are set up properly, you can even use the Trezor on an infected computer.

I agree with "BitcoinNewsMagazine", read the instructions carefully!  But, you will likely be happy with a Trezor.  I am.

If you have a new Android phone that has USB Host (OTG) enabled you can just use Mycelium wallet on your phone and hook Trezor to the phone using an OTG cable to sign transactions. Best of all worlds, portable and highly secure bitcoin transactions. You cannot do this with KeepKey. If friends ask me if they should buy a Case wallet I tell them to spend the $200 on a new phone (if they need one to get OTG) and buy a Trezor. Oh, and forget iPhone.

It sounds like the OP has done this already, thanks for turning him away.


This sounds like sound advice.

To the OP - once you've got it sorted a lot of us would love to hear your experiences with both, write a review or something.

The word "wallet" means two things:

• 1. A file that holds your private keys and/or related information. In the case of a hardware wallet, it also  includes software that creates addresses and signs transactions using the stored private keys.
• 2. Software that connects to the Bitcoin network and creates and publishes transactions, and monitors the addresses in your wallet.

Most wallets are a combination of #1 and #2. They access the Bitcoin network and manage your private keys and the bitcoins that they hold.

Hardware wallets, such as Trezor, Ledger, and KeepKey, are limited to #1, so they need software that does #2 in order for you to use them. Tezor and Ledger both have sites that you can use to spend the bitcoins in your hardware wallet.

Hardware wallets generate their own addresses using the list of words that you write down. If you enter the same list of words into two different wallets, they will generate the same addresses. That way if you lose your wallet, you can enter the same list of words into a new one so that it will use the same addresses as the old one.

I use the Trezor for online buying on different platforms, but I still have online accounts to diversify a bit and to use different wallets for different projects or experiments. You do not want to have one device to

link all your online activities, because it increase the risk for hacking. I know it's not a fool proof method, but it's working sofar.

I use the Trezor for more secure transactions in higher amounts, but I always keep the main stash in cold storage not linked to it at all.  ;)

You will need a wallet. You can use mycelium for Android. You can use Electrum, myTrezor wallet and I think even Multibit HD has a Trezor support at the moment.

They are all good wallets and you should choose them upon your needs.

Cheers!

I'm not asking you to share your personal details but what would you suggest I use for cold storage.  One problem I have is that I have no access to a safe deposit box so it would be difficult for me to use a paper wallet. I saw Xapo and was wondering about using that service. 

This is kinda handy. Thx

seem unnecessary in my opinion Trezor already more than enough to save your bitcoin.

with trezor. you cant just press a button on the device while walking around town to send a TX.
you cant even just plug it into any random persons computer and use it instantly, you need to download the browser extension and log in.. which is a security weakness. (imagine a virus that can detect a trezor/webextension and replace it with a malicious version to send funds to them blackhat instead of the address the user types in)

i think phone app wallets are pretty much on par with a trezor.. no better, no worse. however we are still in the innovation stage and things will get better and more independent, away from third party services

You do not have to use the Chrome extension with the myTrezor.com web wallet, as Trezor supports 5 other wallets like Electrum or Multibit HD. Trezor (also Ledger) are the only secure ways to send bitcoin from your phone using Mycelium.

I would suggest multibit...

I'm thinking the same way.

Check the Trezor wallet, and you will understand everything  ;D Trezor is one of best BTC devices  ;)

I think I am still "old-fashioned"... I only trust paper wallet nowadays... I guess I need to buy on Trezor to change my thinking...

It is safe to use a Trezor on a compromised computer. The private keys are never revealed, and a transaction cannot be modified because it is signed by the Trezor and verified by you. A phone wallet is not as secure.