Security is always of supreme importance when it comes to making an investment. As it is investors’ hard-earned money that is on the line. Hence the investors look for reliable exchanges to invest and trade on.
Unfortunately, the due to the nascency of the crypto industry, not many exchanges have been able to provide that comfort to investors and there has been time and again hacks that always reminds them that their monies are not safe. The hot wallets, the one that is online and managed by exchanges to store their user’s cryptocurrencies have become the most prominent catchment areas for hackers to hack as they have a lot of digital assets.
Due to this these hacks and constant threats that are existent around hot wallets. A lot of analyst and street experts believe that the best way to secure these crypto assets is to store them in cold wallets or hardware wallets. And the two best names that are fighting to get the top spot in the hardware wallet industry are Trezor and Ledger. The following article is meant for the reader to identify the best cold wallet for themselves. Hence the article is built around comparing features that an investor would generally consider in buying a cold wallet. These include –
- Supported Devices
- Supported coins by Trezor and Ledger
- Setup and Usability
- Physical appearance and durability
- Look and feel
A Quick Overview on Hardware Wallet Trezor
Trezor was launched in the summer of 2014 and was the first hardware wallet introduced. The hardware wallet was by a company based out in Czech-Republic called — SatoshiLabs. Satoshilabs was founded by Marek Palatinus — with his understanding of tech and cryptocurrency created Trezor — along with his other invention called Slushpool. Understanding every aspect of the crypto industry and the security that hot wallets lacked.
Trezor was invented to help investors and traders improve the security of their crypto assets protecting them from hackers, viruses and third-party frauds. The idea behind this invention was fairly simple and straightforward — Keep digital assets offline away from all malicious characters and under the control of its users.
With not much history behind it, Trezor wallet did achieve some success which helped it built great reputation and over time has continued to improve on its features and support for new coins. By this Trezor has been able to stand out from its competitors and keep pace with the ever-growing demand for crypto. This farsightedness and dynamism of the founders have helped Trezor earn a reputation for being one of the best in the industry.
Quick Introduction of Ledger Hardware Wallet
Ledger, since its inception, has marched towards being the leader in providing solutions related to security for cryptocurrencies and blockchain-based applications. With Paris being the headquarter for the company, it has offices on Vierzon and San Francisco which houses a team of more than 130 professionals.
Ledger boasts of its success and capabilities in inventing a plethora of products and services which are used in safeguarding digital and crypto assets for individuals and companies. Among their products, the most successful has been the Ledger hardware wallets line which has customers in 165 countries. This customer backing has helped the company in raising substantial capital from private investors which now stands at over $85m in 4 rounds of investments.
Ledger is way far ahead of the competition when it comes to providing security solutions for cryptocurrencies. They have every component which makes it a trustworthy brand, be it the right mix of team, passion, or vision.
Device, OS, and App supported
Trezor device is compatible both with computer and smartphone. The supported operating systems are Windows 7 and higher, macOS 10.11 and higher, Linux and Android OS.
The latest Ledger devices require either a desktop computer (at least 64-bit Windows 8, macOS 10.8 or 64-bit Linux) or a smartphone (at least iOS 9 or Android 7) to install apps, to add accounts, to check account balances and to manage secure transactions.
Both the wallets, Trezor and Ledger, have their own interface which makes it easy to operate. Along with their own interface, users can access them with many third-party wallet apps. The table below shows the leading app and its compatibility with Trezor vs Ledger.
|App||Trezor||Ledger Nano S|
Currencies Supported by Trezor Wallet
Trezor supports a variety of digital assets which includes Bitcoin (BTC), Litecoin (LTC), Dash (DASH), Zcash (ZEC), Bitcoin Cash (BCH), Bitcoin Gold (BTG), Ethereum (+ all ERC20 tokens), Ethereum Classic (ETC), NEM, Expanse, UBIQ, and Bitcoin testnet.
As per recent updates, integration of ERC20 tokens are is currently not possible with Trezor Wallets but they can be easily and securely used with Trezor Beta Wallet along with other commonly used third-party wallets and services. While their seed and private keys stay protected in the Trezor device. There is a possibility that some of the ERC20 tokens may find it difficult to be recognized by Trezor firmware, but that doesn’t stop them from being stored and sent by Trezor Wallets. Users just need to mention the address path of their token, and it will be shown as “unknown token”
Currencies Supported by Ledger Nano S Wallet
Just like Trezor, Ledger Nano S also supports a variety of digital assets which includes many prominent coins and tokens. The main coins and tokens are transacted via the Ledger Live software interface. Following is the list of prominent coins supported by Ledger Nano S that includes Bitcoin (BTC), Bitcoin Cash (BCH), Bitcoin Gold (BTG), Ethereum (ETH), Monero (XMR), Ethereum Classic (ETC), Ripple (XRP), Litecoin (LTC), Dogecoin (DOGE), Zcash (ZEC), Dash (DASH).
The Ledger Nano S operates with its own interfaces: Ledger Live app (free Google Chrome application) while it also allows users to use other compatible software wallets that are mentioned above in the article.
Security Measures by Trezor and Ledger
With respect to security, both the wallets Trezor and Ledger provide the same level of security almost keep it neck to neck. The most prominent security feature of both Trezor and Ledger Nano S is that they both use their screens to generate and display the private key offline.
Also, the wallets asks users to create an access PIN along with a recovery seed. By chance, If the user loses his wallet or is stolen or damaged, their private key will be lost. This is what the recovery seed and PIN are for.
The user can use his recovery seed to get back their coins. The PIN prevents anyone else from accessing the wallet — if it is lost or stolen, no one else can get into the hardware wallet without the PIN the user has created.
Other than the PIN and recovery seed that helps the user to recover his lost private key, both the wallets, now, also provide a third layer of security called ‘Passphrase’. A passphrase can be considered as 24th word of the recovery seed. Just like a PIN, the user has the option to set the passphrase. This passphrase could be a word or a set of letters. It is expected that the user remembers the passphrase instead of writing it down thus securing it completely and away from malicious characters.
So, with respect to security features both Trezor and Ledger stand neck to neck.
Setup and Usability
The Trezor wallet and Ledger wallet both come in a physical form which needs to be connected to a computer via a micro USD cable. Both the wallets find compatibility with Windows, Linux, and macOS. The set-up procedure for both wallets is fairly simple and easy. With steps include — setting a PIN code and writing down a backup of the recovery seed which may be used in case the pin is lost. Similarly, the interface is clean, user-friendly and well-designed making it very easy to use in both Trezor Wallet and Ledger Nano S.
Let’s compare what the interfaces look like: Trezor vs Ledger
Physical Appearance and Durability
Trezor wallet is made up of plastic, while on the other hand, the Ledger wallet comes with a stainless-steel body (means in a more premium and sturdy body). This gives the Ledger Nano S an edge above in terms of being more stylish looking, but that’s not what a wallet holder looks for. But if we only talk about the durability here, then the Ledger Nano S scored the point above Trezor because of being more protected from damage.
Look and Feel of Trezor Vs Ledger
Both, Trezor and Ledger Nano S, are pretty much identical in size. Both are small enough which makes it easy to carry around while being discreet and non-obtrusive. Both the devices have a small screen on them accompanied by two buttons which makes it easy to navigate around. In terms of screen size, Trezor has a slightly larger screen which is a 128×64 pixel resolution. Comparatively, the Nano S is the smaller of the two in size, coming almost at the half the size of the Trezor. In terms of physical security, Nano S stands way ahead of Trezor as made from a mix of plastic and metal, with a robust plastic interior encased by a rotating metal sheath giving it a trendy look.
The price of the two models of Ledger is
- Ledger Nano X- USD 119
- Ledger Nano S- USD 59
The price of the two models of Trezor are
- Trezor T- USD 165
- Trezor One – USD 78
Again the difference is far less in both the wallets, for us to draw a winner is difficult. The user must look at the coin he wants to store and pick up his wallet. Also if the cost is the constraint then Ledger Nano X definitely is nearly USD 20 cheaper compared to Trezor’s base models. Rest Trezor and Ledger definitely go head to head in terms of being picked up by a user.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
All things Blockchain & Crypto. 3 years for writing for Crypto Publications, ICOs and Blockchain cos. Book Junkie. Travel Freak. Food rules my mood. Enough said. Follow me on twitter @vinniesingh7 or mail me at vinnie[at]squadx.io