Cryptocurrency is a digital currency (decentralized and encrypted) which is transferred between users and confirmed in a public ledger (to keep track of transactions). New coins are generated via a process known as mining. Cryptocurrency is on the rise, and so is its application; arguably world currency in the future may be in the form of cryptocurrency so it’s worth it to keep your eyes on it! When it comes to “crypto”, the need for an intermediary is vanquished – all transactions are direct, and remain between source and destination. Like every form of currency, cryptocurrency must be kept secure and safeguarded from theft or hackery. This protection is provided by a cryptocurrency wallet. Around 35% of cryptocurrency users make use of hardware wallets. Hardware wallets are designed like USB devices and can be connected to any computer. They are the most secure wallet type, so much so, that some hardware wallets can remain uncompromised even when still attached to a computer that has been hacked. Two of the arguably best hardware wallets available are Ledger Nano S and Trezor. Here is a detailed comparison of them. Let’s compare Ledger Nano S vs Trezor…
Ledger Nano S
A Ledger Nano S hardware wallet is one of the most inexpensive hardware wallets and is available for $95. It looks like a USB device. A user can sign into the device through a 4 digit pin each time it is plugged into a computer. Transactions cannot be manipulated with, as they are physically verified on the embedded screen with the press of a button. What makes it more secure is the fact that it also supports high second-factor authentication – FIDO (Fast Identity Online), on websites and their subordinates (like Google and Google Dropbox). A ledger Nano S wallet can hold popular cryptocurrencies like Bitcoin, Ethereum, Ripple, and Litecoin. An added advantage is the fact that each cryptocurrency can be managed from the same device. During setup, a 24-word seed is created offline. This is used for recovery purposes. An additional word (checksum) can be added to the seed but must not be forgotten, as it is added to the original 24-word seed. A Ledger Nano S wallet can be used in offline mode as well.
General use of the Ledger Nano S wallet is straightforward and it is a good wallet for first-time cryptocurrency owners or novices.
Trezor operates as a “cold storage” device, which essentially means that it is always offline. It was initially created for the safe storage of Bitcoins, as its name literally means “vault”. Trezor can also be used for Ethereum though when paired with the MyEtherWallet web interface. It also supports popular cryptocurrencies like Litecoin, DASH and, Zcash. It is a small, key-shaped device which is connected to a computer through a USB cable. The cost of a Trezor hardware wallet is $110. It is considered to be the most secure wallet available. A pin code is required to access the device and after every wrong attempt to enter the pin, the user has to wait twice the power of the previous wait time. During setup, a 24-word seed is created offline. This is used for recovery purposes. An additional word (checksum) can be added to the seed but must not be forgotten, as it is added to the original 24-word seed.
Using a Trezor wallet is very straightforward and is recommended for first-time crypto owners and/or crypto novices.
Ledger Nano S vs Trezor
So let’s breakdown the ‘Ledger Nano S vs Trezor’ review. Regarding market reputation, Trezor is a seasoned hardware wallet and consistently ranks for being one of the most popular. A Ledger Nano S however, is sleeker and more appealing to look at in comparison. A Ledger Nano S comes in an aluminium casing which provides more physical protection than the plastic casing provided by a Trezor (although Trezor may prove to be more drop resilient). Trezor is compatible with all android devices and is essentially a small computer, while a Ledger Nano S looks like a pen drive and makes use of two chips for security – this is advantageous to those looking to make use of this. In terms of coins, a Ledger Nano S supports over 10 more cryptocurrencies than a Trezor hardware wallet (They support the same core cryptocurrencies, but can’t support all cryptocurrencies due to hardware constraints).
Trezor has slightly better wallet software; even allowing transaction information to be synced with a DropBox account. An infinite number of hidden accounts (shrouded accounts) can be created with a Trezor wallet and it also provides support for password administrator functionality. A Trezor hardware wallet costs $110, which is slightly more expensive than the cost of a Ledger Nano S at $95, but in terms of the user longevity with these items, such a small price difference shouldn’t be the deciding factor when purchasing. Remember a wallet is important – after all, it is keeping your “money” safe.
So, research should be done before purchasing – a wallet needs to suit your needs first and foremost and with a host of different ones with unique attributes out there, the choices are vast. For us though, Trezor and the Ledger Nano S are both worthy contenders. So is there a real winner in the Ledger Nano S vs Trezor debate?
Featured Image: twitter