As more people spend their hard-earned money on cryptocurrencies, the popularity of crypto is increasing. It has quickly reemerged from being written off as sketchy to becoming the talk of the town. Not only that but selecting between hardware wallets and digital wallets causes a lot of confusion.
Trezor Vs. Ledger Nano – these are the two most popular hardware wallets popularly used and were both introduced in December 2016. These are 2 of the crypto trading tools I normally use.
Let’s talk about the major differences between their features and specifications. But first, let’s start off with the most popular question (which you may already know!)…
What are Hardware Wallets?
In order to protect your crypto assets, hardware wallets use physical devices to hold private keys for your digital assets. They have been hailed as an innovative way of keeping your currency safe from hackers and fraud.
How does it work?
Crypto always exists on the blockchain and is never kept in the hardware wallet itself. Your PIN and an optional private key is the only thing the hardware wallet holds. A list of words called a seed phrase is used to generate a new copy of your private key. It includes a set of 24-word combinations produced by your cryptocurrency wallet and provides access to the cryptocurrency linked to that wallet. Consider a cryptocurrency wallet to be like to a password manager, and the recovery phrase to be like the master password.
So, don’t let anyone access the seed phrase. You must keep them offline in a secure place.
It’s quite tough for a thief to remove your keys from your hardware wallet if they manage to get hold of it. The keys are never made available online, making them impossible to steal. It is called a cold wallet for this reason.
Trezor vs. Ledger Nano | Overview
SatoshiLabs creates advanced security tools and improvements for Bitcoin. It was founded in 2013 with the sole purpose of developing and manufacturing the world’s first cryptocurrency hardware wallet, the Trezor Model One. SatoshiLabs is community-oriented and focused on improving cybersecurity practices while accelerating Bitcoin adoption. With an approach to design that carefully balances security and ease-of-use, while constantly expanding.
Ledger Nano Overview
Ledger Nano was founded in 2014 by eight experts with diverse backgrounds in embedded security, cryptocurrencies, and entrepreneurship, who came together with the goal of developing secure solutions for blockchain applications. They are a fast-paced, growing company developing security and infrastructure solutions for cryptocurrencies as well as blockchain applications for individuals and companies, by leveraging a distinctive, proprietary technology.
Trezor vs. Ledger Nano | The Look
While the hardware design is immaterial in terms of functionality, the screen is. They are used to display the seed phrase as well as to send cryptocurrencies.
The Trezor Model T has a 240X240 color touchscreen, while the Ledger Nano X has a 128X64 monochrome screen. The Ledger Nano device is unquestionably smaller than the Trezor device, making it easier to carry or protect.
Both Trezor and Ledger wallets do not differ much when it comes to their size, Trezor’s biggest model is the Trezor Model T, 64mm x 39mm x 10mm in size. Ledger’s biggest model is the Ledger Nano X, which is 72mm x 18.6mm x 11.75mm.
Material may also be important to users. Trezor hardwallets have a distinct shape and are placed in a plastic casing. Ledger Nano hardwallets, on the other hand, have a sleek design similar to a standard steel USB storage device.
Trezor vs. Ledger Nano | Supported Coins
It is important to take into account which coins are supported by both wallets. Trezor wallets support over 1649 + cryptocurrencies, whereas both Ledger Nano wallet versions (X and S) supports over 1800 cryptocurrencies in the Ledger Live app .
Trezor vs. Ledger Nano | Supported OS
Trezor and Ledger are both computer and smartphone compatible. And they’re fairly similar!
The Trezor and Ledger Nano hardwallet are compatible with Windows 10, macOS 10.11 and higher, Linux, and Android OS.
Trezor vs. Ledger Nano | Open Source
The choice between secure hardware and open source really depends on user preferences.
The Trezor wallets are using open-source firmware and software. Some users prefer the open-source nature of Trezor wallets because it allows them to view the code and report any vulnerabilities that may exist.
Meanwhile, the Ledger Nano device has its own custom operating system and Secure Element (SE) chip type known as BOLOS, which provides greater security than open-source software in general. Furthermore, by restricting access to specific parts of the hardware and software, the Secure Element (SE)‘s integrity can be maintained, thereby protecting its secrets from extraction and preventing key operations from being compromised.
Trezor vs. Ledger Nano | Password Encryption
The Trezor and Ledger Nano wallets both have different password features and each unique passphrase unlocks a distinct set of accounts.
Trezor Password Encryption
This password is entered into Trezor wallets via a connected device, such as a laptop, which can put you at risk from fraud and scams. Luckily, the Trezor Model T‘s microSD card feature can be used to encrypt the PIN and further protect the device from malicious attacks. The device can be bound to a microSD card and cannot be unlocked without it until the user disables the feature intentionally or the factory resets the Trezor Model T.
The Trezor Model T supports the use of a password manager, which functions similarly to other password managers, except that there is no master password to handle all of the passwords for the various websites. Each password is secured with a different key, and the signature is derived from a different private key on the device. Furthermore, Trezor ensures that it cannot access the data stored in the Trezor Password Manager.
Ledger Nano Password Encryption
Ledger Nano Passwords, on the other hand, are based on your Ledger’s seed, which is a word-combination password linked to another PIN and entered using the standard keys. If you lose your Ledger Nano, you can recover them using your backup seed. All you need to know is that your passwords must be named differently.
Watch more info from CryptoDad:
Trezor vs. Ledger Nano | App Compatability
Trezor hardwallets are compatible with MyTrezor, MyEtherWallet, Electrum, Greenbits, MyTrezor, Magnum, Copay, GreenBits, Electrum, Mycelium, etc.
The Ledger Nano hardwallet is compatible with apps such as Ledger Live, MyEtherWallet, Electrum Copay, Magnum, Mycelium, Electron Cash, GreenBits, MyCrypto, Binance, etc.
Trezor vs. Ledger Nano | Security
Let’s start at the beginning: why should you use a hardware wallet?
The main reason is that it allows you to easily and quickly access your private keys for transactions while keeping them completely secure and hidden. Because your private keys are effectively stored within your hardware wallet, the device’s security is a major concern. So how can you be sure they’ll be safe?
Trezor models have a single chip base, closed-source firmware, and are not vulnerable to third-party vulnerability tests. With Shamir Backup, it provides improved private key security.
Here’s a quick video about Shamir Backup:
Meanwhile, the password for your Ledger Nano hardware wallet is linked to another PIN that is entered using the normal keys. It also employs a dual-chip platform, a general-purpose 32-bit microcontroller (STM32F042K), and the other one which is a bank-grade Secure Element.
Secure Element is a type of chip commonly found in passports, credit cards, and payment systems. In other words, any environment in which your most sensitive personal data must be present while remaining completely secure and hidden.
And the purpose of using Secure Element (a type of Smart Card) is to add an extra layer of security that standard components lack. It not only protects your data but also incorporates inherent countermeasures against many known attacks, making it tamper-proof and hack-resistant.
Trezor vs. Ledger Nano | Pricing
Trezor vs. Ledger Nano | Choosing which one to use
Hardware wallets can store multiple crypto-currencies in a discrete, offline environment at the same time. They are secured by an encrypted pin that we generate. Because the transaction is verified by the hardware wallet, these wallets do not allow anyone to make a transaction without having access to the device. So, as long as we are the only ones with access to the hardware wallet, our data and transactions are secure (safe and sound!). After three consecutive incorrect password entries, the wallet locks out anyone who attempts to force entry by using different pins.
Both crypto hardware wallets are extremely safe, and the final decision will be based on the user’s personal preferences. While hardware wallets are more protected than software wallets, users should be aware that advanced phishing attacks can still occur. Users should never provide their 24-word seed to anyone and should keep it safe at all times.