Ledger and Trezor take the lead in cold wallets when it come to storing cryptocurrency. This is because Cold hardware wallets are a safer alternative to hot wallets since they are less vulnerable to viruses hosted on computers or getting hacked. Its why the smartest Crypto investors prefer them over simply keeping coins on online Crypto Exchanges.
It is important to highlight their differences to decide which one is the Best Crypto Cold Wallet among the two. Once users have a clear idea about the pros and cons of both Trezor and Ledger, they can make an informed decision. However, before diving into the specifications of each wallet, the benefits of owning a cold wallet have been highlighted below.
Benefits of Cold Wallets
Cold wallets are digital wallets that allow you to store your cryptocurrency offline. They are signed offline and later disclosed online, meaning they are only used as a means of storage.
Cold wallets have several advantages over hot wallets:
The major benefit is that the private keys used to authorize transactions are either stored on a paper document or on hardware that is not connected to the internet. It means that there is no way for these keys to get exposed to the internet, which can protect them from hackers and malicious software like viruses. Well, as long as you don’t publish your private key somewhere on the web intentionally…
Hot wallets, on the contrary, have the weakness of getting hacked as they are easily available on the internet. An example of keeping your coins on a hot wallet, is placing your coins on an Exchange such as Binance or Bitfinex. Don’t do that if you are simply Hodling your Coins long term without intention of selling for a very long time.
Furthermore, since any reliable organization does not back Crypto, if you lose your coins, there is no way to retrieve them. For this reason, keeping your currency in a cold hardware storage wallet such as Ledger or Trezor is the wisest option.
Ledger VS Trezor: Basics
The Ledger wallets were introduced in the market in 2014 and are stored on hardware devices like flash drives to keep your data safe. These wallets use BOLOS (Blockchain Open Ledger Operating System), a customized operating system developed by Ledger. This makes it difficult for any outsider to break into the system.
Still, all the necessary information is provided to the user when it comes to cryptographic operations. Supporting over 1100 cryptocurrencies, Ledger is a popular choice because it allows users to easily receive and send coins from both block-chains and third-party devices.
The Trezor crypto wallet was launched in 2013 by SatoshiLabs, one of the first cold wallets to enter the market. Its popularity is its user-friendly interface, which makes it easy to use even for beginners. In addition, unlike Ledger, which uses a specific operating system, the Trezor firmware is open-source. Even though this means that any bugs or issues can be identified easily, the open-source system makes it somewhat less secure than Ledger.
Ledger VS Trezor: Versions
Ledger and Trezor wallets are available in two hardware versions, each with pros and cons. Ledger wallets are available in Ledger Nano X and Ledger Nano S. At the same time, the Trezor versions include Trezor One and Trezor Model T.
The Ledger Nano S device was first introduced in 2016, while the X version came out in 2019. The major difference between these two is that the latter provides a Bluetooth connection and storage for a larger number of applications. However, the overall appearance of both devices is more or less the same.
The Trezor One was the first device launched by Trezor, and it comes with U2F-factor authorization and a password manager. The Trezor Model T was introduced in the market in 2018. It is a more advanced machine that features a colored touch screen that is bigger than One and an SD card slot for added convenience. Both the devices come in a signature black color, which helps them stand out from others.
Ledger VS Trezor: Functionality
Before making the final decision between the Trezor vs. Ledger wallet, users must be knowledgeable about the specific functionality. These have been discussed one by one.
The Ledger Nano wallet comes with an application that is called Ledger Live. It can be installed on mobile and desktop devices, making it easier for users to keep track of their crypto funds. The application also allows users to send and accept funds and oversee their accounts. The Ledger wallet supports a wide range of third-party applications like MetaMask and MyCrypto. Exodus is the only application that is not compatible with Ledger.
To start using the Ledger device, users will first need to plug it into their device and allocate a specific pin of their choice. Once complete, the device will generate a unique 24-word seed phrase you must write down and save on your phone or paper. It provides an additional level of security; just make sure you do not lose this phrase under any circumstance.
Unlike Ledger, the Trezor wallet does not come with a mobile application. Instead, users need to add an extension to Google Chrome or use the Trezor Bridge compatible with different operating systems. Since Trezor does not have a unique operating system, several users find it easier to handle. A desktop app exists named Trezor Suite, which can be installed and used to manage crypto accounts.
Like Ledger, Trezor can connect with almost all third party-applications, including Exodus. However, if you use Khyber Network, you will need to use Ledger, as it does not work with Trezor. The Trezor wallet allows users to transfer their coins and keeps them safe using public and private keys. Keep in mind that the device itself does not keep coins stored.
When deciding between Ledger vs. Trezor, users need to keep their specific needs in mind. Both cold wallets provide very similar features, including access to almost all cryptocurrencies.
The Ledger is slightly better due to its user-friendly application, Bluetooth connectivity, and lower price point. The Trezor comes with a better user interface and a larger screen but at a higher price. So, look at Trezor and Ledger’s features before going for any cold wallet.