In the emerging Cryptocurrency world, it is vital to keep in mind the security issues that come attached to it. Hardware wallets have been proved as one of the best alternatives to keeping your cryptocurrencies safe. Being the world’s first hardware wallet has undoubtedly shown to be an advantage for Trezor wallet in the emerging competitive environment.
For the people who are deep into the world of cryptocurrency, there may be many questions regarding the safety and storage of their currencies. This article answers all the questions regarding hardware wallets while keeping a focus on Trezor.
What is Trezor Wallet?
Trezor is a hardware wallet which handles cryptocurrency private keys and provides advanced security for it.
Trezor was found in the Czech Republic based company SatoshiLabs in August 2014. It was the first hardware wallet to be produced in the world.
This key-sized device functions as a USB dongle and provides safety to the cryptocurrency even when the computer is insecure. Trezor operated on a Zero Trust Approach which means that there are multiple layers of security to not be accessed by the third party.
Trezor is designed to protect the private keys from possible offline as well as online risks. Some of the prominent features of Trezor are:
- The device is water resistant.
- It weighs up to 12g.
- The OLED screen is 128 x 64 pixel.
- It supports Windows, Mac, Linux, and Android.
- The price at present is €89.
- The CPU is 120 MHz Arm Cortex M-3 Processor.
- The connection can be made in micro USB to desktop or mobile.
- It is CE, and RoHS certified in accordance with quality, reliability and environmental standards.
- PIN protection: A 4 word PIN code must be chosen to protect your Trezor from unauthorized access.
- Recovery Seed: it provides a 24-word code used to recover your wallet if you forget the PIN or if your Trezor gets lost or stolen.
- Single purpose: To minimize security issues, Trezor do not need any apps or downloads.
- There are no batteries, cameras, Bluetooth or Wi-Fi facilities which may compromise security.
Why Trezor wallet?
Following are the reasons why Trezor wallet have gotten so much fame and why you should be using them:
Trezor can be bought from the official website of Trezor at €89. The price is somewhat reasonable for experienced users for all the extra layers of security that it provides.
Since there are not many companies producing hardware wallets, the current price of Trezor is somewhat acceptable to a large extent.
The security provided by Trezor is uncompromised. The top-notch security that it contains is probably the reason for its higher price. It gives the cryptocurrency both physical and virtual protection from theft.
3. Offline Private Keys:
The Trezor wallet holds your private keys offline thus it is the cold storage for your valuable cryptocurrency.
4. Recovery Phase:
Trezor has a 24-word seed that is used to secure your account when you lose your Trezor or when you forget your PIN code.
5. Advanced Recovery Process:
to keep your device extra secure, you will have to enter individual alphabets on the Pin Pad through mouse clicks. The amazing thing is that the pad changes after every click to cut out the possibility of the words to get intercepted by a third party.
6. PIN protection:
You have to set a more than four-digit PIN code for an extra layer of protection So in case an unauthorized person has access to your device, they cannot do anything with it unless the PIN is used.
7. Encrypted Passphrase:
If you are not okay with just the pin, you can also add an extra layer of protection which is a password covering the PIN.
So until and unless you enter the Passphrase, no one can access the secure cryptocurrency. However, you will have to remember your passphrase since there is no way you can undo this act if you forget the passphrase.
9. Hidden (double) Wallet:
This unusual feature lets you enable more or less unlimited amount of hidden wallets. Each passphrase creates a new one. They all can coexistence.
This is the ultimate form of security provided by Trezor. Here, you can have an account with minimum Crypto while another account with your primary portfolio of cryptocurrency.
Thus, in case your Trezor is stolen and the hacker gets access to your passphrase, only the account with the smaller amount of Cryptocurrency is taken. The primary wallet stays safe from the theft.
10. Wipe password:
this feature as per the name helps you clean your Trezor. This leaves you with a fresh new Trezor wallet. So you will have to start from scratch.
Trezor is a compact, portable and simple hardware wallet. Black and white colors are available. The device comes with a small strap you can attach to your wrist or finger.
12. Software Wallets:
Trezor is compatible with various wallets. On the desktop, it is compatible with Electrum, GreenAddress, and MultiBit HD, on the web it is compatible with myTREZOR.com while on Android it is compatible with GreenBits, as well as Mycelium.
13. Multi cryptocurrency:
Trezor supports numerous cryptocurrencies like Litecoin, Zcash, Ethereum, Bitcoin Cash, Ethereum Classic, Bitcoin and also recently announced that it will support Rootstock as well. Also, a large number of coins can be stored on Trezor.
14. Multiple accounts:
Trezor allows multiple accounts to keep funds organized and separate.
15. 2-FA authenticator:
Trezor can be used as a 2 FA authenticator to log into a third-party service. The third-party services can be GitHub, Google Drive, WordPress, and more.
How to Use the Trezor Wallet?
Following shows the ways you can use the Trezor Bitcoin wallet:
- You must use the USB cable to connect your Trezor to your computer.
- Then go to my Trezor to download a browser plugin.
- Activate the plugin and choose a PIN. consider the following things during this process:
- Don’t type the PIN, simply click on the numerical pad which is shown in the browser.
- Every time you enter the PIN, check your Trezor device for the layout since the position of each number changes randomly.
- Since the numbers are displayed only on the Trezor device itself, a third party or hacker will not be able to determine the numbers through desktop access.
- Write down the 24 word randomly generated sequence and consider the following things:
- You will need this 24-word seed to restructure Trezor in case you lose it or you forget the PIN.
- It is used as the only backup during loss or theft.
- The seed can be recovered and used by other wallets since it uses BIP39 and BIP 44 standards for creating new wallets.
- Do not virtually note on your this seed, instead jot it down on a paper with a pen and keep it somewhere safe.
- Since you have to make an account to operate the transactions, go to myTrezor and click on “Account #1” which is on the left side of the screen.
- An empty transactions tab will be seen after which you should click the “Receive” tab. You will receive your first Trezor bitcoin address which is a long string of numbers and letters. Keep in mind that you must scan the QR code shown next to the address if you are transferring bitcoin from a mobile wallet.
- After the payment is made to you, a green transaction will appear in the transactions pane which means incoming transaction. Consider the following things:
- The transaction will be marked ‘unconfirmed’ initially.
- The process to complete the transaction may take up to 15 minutes.
- After the process is complete the date and time of the transaction’s completion will replace the ‘unconfirmed’ text that was shown earlier.
- Go to your account page and press ‘send’.
- In the payment page enter the destination bitcoin address and consider the following things:
- Type in a destination address and the amount for the transaction you are willing to send.
- You can also use myTrezor and press the scan QR code button in the address field, hold a picture of the QR code up to your computer’s webcam in order to connect the QR code with that of the recipient’s wallet.
- Bitcoin can also be sent to numerous addresses with one transaction. For that, you will have to select the “+” button which is on the right-hand side of the Send page. By clicking “Import from CSV” button you can choose to add multiple transactions.
- Now you simply have to click send and then enter your PIN code.
- Trezor will ask you to confirm the transaction.
- If all the information regarding the payment address and amount are correct then click the right button on your Trezor, if not then press ‘cancel’.
- After confirming the transaction, Trezor will show the total amount of the payment and the transaction fee as well. Confirm them as well.
- to view the process of the payment you can switch to Transaction window where the outgoing transaction will be shown in red.
Pros and Cons of Trezor Wallet
Trezor has both pros and cons even though it is a rising product in the world of cryptocurrency. Some of the pros and cons of Trezor are given below:
Security has not been compromised by the manufacturers of Trezor. Trezor provides multiple layers of protection to your valuable Cryptocurrency.
It limits hacking to a large extent with Recovery Phase, Advanced Recovery Phase, PIN protection, Encrypted Passphrase, Hidden Wallet, and Wipe password facilities.
2. Multiple currencies:
It supports numerous currencies with ease. The manufacturers of Trezor also quickly support other emerging cryptocurrencies as far as possible. I can easily convert the transaction from crypto to fiat currency.
3. Easy User interface:
It is widely accepted that Trezor is very easy and simple to use. myTrezor plugin has made the transaction process very easy for its users. The straightforward process makes the experience of using it rather easily.
1. Complicated PIN:
There are times when you might get irritated due to the relatively lengthy process of keeping up with the security features.
The PIN must be re-entered through a keypad every time you plug in the Trezor which is quite incomprehensible and time-consuming.
2. Limited transaction opportunity:
One of the main downsides of hardware wallets like Trezor is that there is limited transaction opportunity since the device must be plugged into the computer every time you opt to make a transaction.
Unlike hardware wallets, mobile and paper wallets can be used immediately without the need for this extra process thus making hardware wallets a little less attractive.
The price of Trezor is indeed larger than any other hardware wallet in the market at present.
This might also be due to its brand name and respect it has acquired over the years. However, if there are new hardware wallets with lesser price and similar features to Trezor, than people may opt for other wallets.
All in all, if you want a secure way to store your cryptocurrency without the constant fear of it being hacked, then you can go for Trezor which has both the respected name and remarkable features.
Cryptocurrency is an infant stage and is seeing a huge growth in the near future, thus it is best that you stash away your cryptocurrency where only you can access it. If you choose to store your cryptocurrency in a hardware wallet, it is recommended that you go for Trezor wallet.
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