Hardware cryptocurrency wallets are considered the safest options for storing digital coins in the market today. Because they store the coins offline and users are required to have them physically when running transactions, attackers find it almost impossible to hack.
One of the leading hardware wallets that have won the hearts of many cryptocurrency enthusiasts is Trezor. The wallet’s ability to store multiple tokens has made it a top option especially for those who want to trade aggressively in the market.
Even with its thrill, the cryptocurrency community was shocked in August 2017 after a hacker used malware 1.5.2 to gain access taking advantage of vulnerable chips made by STMicroelectronics.
This Trezor wallet review is a comprehensive evaluation of the wallet to seek answers to the hard questions, including “Is Trezor wallet safe?” and “Should you use Trezor wallet to store your coins?”.
What Exactly Is Trezor?
Trezor wallet was created by Satoshi Labs and released into the market in 2014. This made it the first hardware wallet that combines secure offline cold storage and capability to spend tokens with the convenience of a hot wallet.
The wallet is a finger-sized device with a small LCD screen that allows you to key in the wallet’s pin and follow transactions. Note that it requires plugging in to a computing device such as phone, desktop, or laptop to function effectively.
The primary goal of the Trezor hardware wallet is protecting the private keys from offline and online risks. This means that the private keys are kept away from the internet and confirmations only take place in-device.
Trezor allows the user to easily confirm the address, transaction fee, and other details before flagging off transactions. If you put it in a layman’s terms, the wallet makes it possible to connect it even to a malware-infected computer and still run safe transactions because the private keys never leave the hardware wallet.
Trezor: A 4.6 Star Rated Hardware Wallet
When people, especially those with heavy investment in cryptocurrencies operate in the industry, there is nothing as terrifying as getting reports that another wallet has been attacked. They keep wondering whether they will be the next or if their tokens are indeed safe.
Trezor wallet is a 4.6-star wallet because it provides users with the peace of mind by assuring them of offline storage for their funds. Since its launch in 2014, the wallet has been a fortress with hackers finding it extremely difficult to crack.
The only instance when Trezor hardware was hacked was in mid-2017 when a hacker took advantage of the vulnerability of a chip designed by STMicroelectronics.
The focus of the development team to keep improving the wallet has helped to introduce new features such as a password manager, cryptosteel and dry-run recovery that deliver better user experience. This focus on improvement has made the community believe that Trezor wallet will continue playing a central role in helping the blockchain niche grow from one step to another.
How Does Trezor Work?
The Trezor wallet operates by sending signed notes of payment (transactions) online. This implies that you will need the right private keys for the respective blockchain whose coins you want to store on Trezor.
Here is the process of setting up and working with Trezor. First, you will need to buy the Trezor hardware from the market such as Amazon and set it up.
- Plug Trezor into a computer USB port. It will light the LCD screen to reveal an image of a lock and the site you should visit for further instructions before redirecting to you to wallet.TREZOR.io.
- Install the wallet so that it can start connecting with your blockchain (Bitcoin, Ethereum, or others). You can opt to download it directly or install it as a Google Chrome extension.
- Install the latest firmware and confirm that the “Fingerprints” match what is displayed on the computer screen.
- Unplug the Trezor wallet and reinsert it. Then, visit www.TREZOR.io to give the wallet your preferred name. You can do this right away or later on.
- Set your PIN. This is very important because the PIN will always be required when using the wallet.
- After generating the PIN, the wallet will display a 24-word backup phrase that will be required to restore the stored tokens if the wallet gets lost.
- Start transferring your cryptocurrency to the wallet. Note that the coins you want to store must be supported by the wallet. Some of these include Bitcoin, Litecoin, Dash, Ethereum Classic, Ethereum, and all ERC-20 tokens.
The following video demonstrates how you should go about depositing cryptocurrencies from Trezor hardware wallet:
Is Trezor Secure?
When the revelations that Trezor had been hacked in 2017 emerged, a lot of people started worrying about whether their tokens stored in the hardware device were indeed safe. The problem was caused by malware 1.5.2 but was fixed by the development team.
The attack demonstrated that even the best technology in the market cannot be 100% attack proof. Newer updates are adding more security features to make Trezor secure. For example, Trezor 1.6.1 update released in March 2018 introduced the Tamper Evident Seals.
Other components used to guarantee users of optimal safety include:
- The coins are always kept offline.
- The development team releases regular Trezor updates.
- Trezor uses a limited USB connection that helps to keep the wallet safe even when plugged into an infected computer.
- The Trezor PIN is designed to alter the arrangement of numbers and make it impossible even for a keylogger to steal the keys.
It is important to appreciate that the security of the Trezor Bitcoin wallet is also dependent on you. For example, it is your duty to store the wallet’s PIN and seed phrase safely and away from third parties.
Trezor wallet is a demonstration of the latest technology derived from the need to guarantee blockchain users of optimal security. It is considered by Satoshi Labs as an important component in helping to take blockchain to the next level because users are assured of optimal safety for their coins.
- Your coins are always stored offline, which makes it almost impossible for attackers to access and steal your coins.
- When making transactions, the private keys do not leave the wallet.
- The wallet supports many coins such as Bitcoin and all ERC-20 tokens.
- Though it is a hardware wallet, you are still be able to recover the tokens in case of a loss by using the seed phrase on a compatible wallet.
- The petite size of the wallet makes it easy to carry around and use at any time.
- It is very expensive.
- Though the wallet is indeed very secure, it is still prone to get lost through misplacement.
This Trezor wallet review established that though the wallet is costly and had an instance of a successful hacking attack in 2017, it is among the best in the market. It is relatively easy to use and people can store a wide range of coins.
If you have been looking for a wallet to store your digital coins, Trezor is one of the most secure wallets out there. The main competitor that has been demonstrated to be equally effective in storing digital coins is Ledger Nano S.
Consider comparing Trezor review with a Ledger Nano S review to establish which one has more advantages. You should particularly check for the wallet that is more secure and supports more cryptocurrencies of interest.