Working out whether you are a crypto trader or investor at tax time can be…
Best Crypto Hardware Wallet: Ledger or Trezor?
The benefits of a hardware wallet.
A hardware wallet is a device that allows you to store your cryptocurrency assets offline and out of reach from malicious actors, but that’s not all…
Hardware wallets allow you to recover funds in the unfortunate event your device is lost, broken or worse…stolen. After three incorrect attempts at entering the PIN code, the hardware wallet will wipe its memory and restore itself back to factory settings.
You can easily restore your cryptocurrency assets to any hardware or software wallet with BIP39 compatibility. BIP39 is the cryptographic protocol that displays the complex alpha-numeric private key as an easier to manage 12-24 word mnemonic phrase.
If you’re not familiar with Ledger or Trezor already, you should be as they are the two leading cryptocurrency hardware wallet manufacturers.
Access and management of your assets are handled through easy to use applications, such as Ledger Live or Trezor’s web wallet, which is similar to how you would log onto your internet banking website to view and transact with fiat money.
Ledger Nano S vs Trezor One
Ledger Nano S
Our first stop on the way to choose the best crypto hardware wallet is the Ledger Nano S. This is by far the most popular cryptocurrency hardware wallet, designed and built by Ledger in France. It’s available for AU$99 AUD at Coinstop, and with 1 million+ Ledger Nano S devices have been sold since the release, it’s clearly a crowd favourite.
Now with over 1000 compatible cryptocurrencies, the Ledger Nano S is extremely versatile in terms of cryptocurrency storage options, but unfortunately quite limited when it comes down to user experience.
A major drawback of the Ledger Nano S is its limited storage capacity. If the apps are similar, e.g. Bitcoin and Litecoin, you will use less storage space than if you were to have Bitcoin and Ethereum apps installed. Using this method, recent firmware updates will allow storage of between 3 and 20 different cryptocurrency wallet applications at any one time.
The Ledger Nano S also features U2F (Universal 2nd Factor) compatibility, an open authentication standard that strengthens and simplifies two-factor authentication (2FA).
The second stop on the way to selecting the best crypto hardware wallet is the Trezor One. This is the original and most reliable hardware wallet on the market, coming in at an absolute steal for $99 AUD at Coinstop.
While also boasting 1000+ cryptocurrency assets, the Trezor One does not have any issues when it comes to application storage, as all applications are accessed through the Trezor Bridge software, and not actually held on the device.
The Trezor One also features U2F (Universal 2nd Factor) compatibility, an open authentication standard that strengthens and simplifies two-factor authentication (2FA), as well as a Password Manager to help secure your accounts.
Ledger Nano X vs Trezor T
Ledger Nano X
The Ledger Nano X is a battery powered, Bluetooth enabled cryptocurrency hardware wallet that allows you to safely and securely make cryptocurrency transactions while on-the-go.
The Ledger Nano X has a revised intuitive layout which sees the side buttons replaced with two buttons on the front face for easy navigation. Ledger have also beefed up their storage capabilities with the Ledger Nano X, which can now store up to 100 different cryptocurrency wallet applications at the same time, solving the capacity issues in the previous Nano S model.
The nest stop in the search for the best crypto hardware wallet is the Trezor Model T. This is the next-generation cryptocurrency hardware wallet, designed to be your universal vault for all your digital assets. It is your wallet, it is your keychain, it is your digital safe. It boasts a full colour touchscreen for increased user experience and navigation.
The Trezor T can also serve as your U2F hardware token. The Trezor T fully utilises its screen to inform you about the authentication request before you approve it. Passwords are individually locked with the Trezor Password Manager, using your digital keys. Secrets are then released one by one, and only after your physical confirmation on your Trezor T device.
Audited by security researchers, verified by its track record. Trezor do not have anything to hide from you; they follow the open-source ethos.
Packed with loads of features and an easy to use interface, hardware wallets are fast becoming the go-to storage device to safely secure cryptocurrency assets.
So how do you choose the best crypto hardware wallet?
If you’re a believer in open-source principles, the fully open-source hardware and software produced by Trezor should be your first choice. A lot of Ledger code is open-source, but not all of it, and for some people that’s a deal breaker.
With increased merchant adoption, people can easily spend their cryptocurrency at restaurants, bars and airports. The Bluetooth enabled Ledger Nano X is perfect for making transactions on the go.
For a lot of people, cryptocurrency compatibility is how they make their final decision. While both Ledger and Trezor wallets are compatible with over 1,000 different cryptocurrencies/tokens, they’re not compatible with them all.
As the blockchain industry grows, new manufacturers will enter the scene trying to grab a slice of the market share that is so heavily dominated by both Ledger and Trezor. Some of these products may boast more features than the Ledger or Trezor devices, but one thing they can’t manufacture is the trust the market has with Ledger and Trezor cold storage wallets.
Trying to dethrone Ledger or Trezor will be a difficult task.
If you’re interested in learning more about hardware wallets, or need a hand deciding which one is best for you, please feel free to send Coinstop an email (firstname.lastname@example.org) – they’re always happy to help.
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Stuart Reynolds is the founder of Fullstack Advisory, an award-winning accounting firm for businesses leading the future. He is a 3rd generation accountant who specialises in tech companies, agencies and entrepreneurs.