member since March 28, 2018. My total time logged in:
. on this forum. My trust score is
. Currently I am a "Sr. Member" and I will try to explain why I would like to be a merit source.
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Table of contents 1.
General Information 2.
The most popular hardware wallets 3.
Other hardware wallets worth attention 4.
Comparison of wallets General InformationWhat are hardware wallets?Hardware wallets are devices designed to store private keys and sign transactions independently from the computer. Their main advantage is being able to use them even on an infected computer. These days, most hardware wallets have built-in screen on which user can check whether or not the destination address was modified by a malware. However, it is not possible to store every cryptocurrency on a such device. It all depends on the support of the manufacturer.
What if I lose my wallet or destroy it?At the first boot, every hardware wallet generates either 12 or 24 word seed which you can later extend with a custom passphrase. This seed can be used to recover coins using third party software, for example, Electrum. It is recommended to test the seed before sending any coins to the generated address. Exposure of the seed should be considered as a major security issue and coins should be urgently moved to another address not associated with the same seed. Firmware updates sometimes wipe the device, keep that in mind before updating your device.
Are hardware wallets completely safe?No, there is no perfect solution. A few vulnerabilities have been found in the most popular hardware wallets but they required a physical access to the device. Here are examples of attacks that were possible to perform on
TREZOR One and
Ledger Nano S. If you don't trust hardware wallets because of that, you should consider using a cold storage. It's less convenient but it provides higher security.
Choosing a proper walletEvery hardware wallet is different. It is difficult to recommend only one model but there are only a few companies which sell trustworthy devices. Keep in mind that you are not paying only for the device but also for a long-term support. It would be a shame if your wallet didn't get an update after, for example, SegWit was activated.
The most popular hardware walletsLedger Nano S
This device is maintained by a French company. Ledger decided to use Secure Element which checks on every boot if the software on the device was modified. Some people are not keen on this solution since it's not completely open-source. You can either use Electrum or Ledger's Chrome app to access your wallet. It will be soon replaced by a new desktop and mobile client which will have more features. Currently, their Chrome app seems to lack some useful features such as using your custom backend and signing transactions without broadcasting them. To send specific coins you have to install a proper app on your device using Ledger Manager. Because of Secure Element, the available space on this model is quite small. However, you can uninstall apps anytime and your coins won't disappear. Later, you will have to reinstall the app which takes some time.
Ledger Nano S supports a huge variety of altcoins which is why many people choose it. You can find a full list
here.
Ledger Blue
Big touchscreen, built-in battery, Bluetooth connectivity (not used by any app) and a larger memory are things which differ this model from Nano S. Due to high manufacturing costs, Ledger decided to stop selling this device. At the time of writing this guide, the last batch of ten thousand devices is available. Its support has been much worse than the other model, but Ledger is trying to make up for it.
TREZOR One
TREZOR is one of the most trustworthy hardware wallet manufacturers, located in Czech Republic. TREZOR software is fully open-source so anyone can contribute and help with implementing more coins. TREZOR is constantly upgrading their web wallet interface - you can find many features which are not supported natively by other hardware wallets. The device doesn't have any pre-loaded firmware. Due to security measurements, it's downloaded from TREZOR's servers on the first boot. Some users might find it difficult to input PIN and the seed recovery is done on the computer.
TREZOR T
TREZOR T runs on a completely different software written from the scratch. Developers claim that it will make adding more coins easier. This model has a touchscreen which allows user to input PIN and passphrase on the device screen. SD card slot is definitely an unique feature. In the future, it will be possible to store files which will be automatically encrypted with your private key. This model will soon support Monero and Ripple.
KeepKey
KeepKey has been recently bought by ShapeShift. This device has less features than models described above. However, the developers are trying to make up for it. KeepKey
does not support native SegWit addresses (it's not possible to receive and spend from them). You can use either Chrome extension or Electrum to manage your coins. Because of the large screen, it might be difficult to hide or transport this wallet.
OpenDime
OpenDime is a small USB stick which you can hand out to any person you want. The device generates private keys and does not expose them (even not to the owner) unless the seal is void. There is no need to broadcast a transaction to the network, it's useful especially if the transaction fees are too expensive. You can simply give it to the other person.
Other hardware wallets worth attentionColdcard
This device doesn't have any specialized software. It works with some well-known software wallets. The device has a micro SD card slot which can be used for data storage and transporting (un)signed transactions. Currently, it's only available as a pre-order. It's worth to mention that you can use multiple PINs (accessing different wallets or even bricking the device).
BitBox
A small wallet created in Switzerland. Wallet data is stored on a micro SD card. Instead of built-in screen, this device has a touch button which is used for accepting and rejecting transactions. It is possible to use a smartphone to verify if the recipient's address is correct. It does not support as many altcoins as Ledger and TREZOR.
Bitlox
Credit card sized wallet with e-ink screen which doesn't require much power. Bluetooth can be used to communicate with a mobile device and a micro-usb cable with a computer.
Comparison of walletsWhich one is better? TREZOR or Ledger?It all depends on your needs. Ledger mostly focus on supporting more and more altcoins while TREZOR developers are adding more advanced features to their wallet. I would recommend TREZOR for anyone who is not interested in altcoins. Their build quality and support is almost equal (TREZOR team responds very fast not only through their ticket system, but also GitHub and Telegram).
What is the difference between TREZOR One and TREZOR T?TREZOR T is going to support more coins in the future because of new hardware and software. Touchscreen in TREZOR T allows for a secure input of PIN, passphrase and the seed in case you want to recover your coins.
Which device is more future proof?If you decide to buy either TREZOR or Ledger you won't have to worry about future Bitcoin forks. Don't expect to be able to claim every single one without exposing your keys to a third party software. More advanced features such as touchscreen and additional connectivity are useful, but they might easily break, it will make your device useless.
I hope admin will consider my application.
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