Can’t decide the best wallet for your crypto? We are here to help!
As lucrative as the cryptocurrency world is, it comes with a high risk of losing your crypto because of hacks. To make sure that your crypto holdings stay safe with you, you must carefully choose effective storage solutions for them. One of the ways to keep your crypto secure is by holding it in a hardware wallet.
Hardware wallets are physical storage devices for your cryptocurrency that are not connected to the internet (because of which they are called cold storage). Their lack of connectivity makes them a safer option as opposed to keeping your crypto holdings inside a software wallet (mobile or computer applications, like Coinbase or BlockFi).
While there are a lot of hardware wallet options out there in the market, two of the most well-known ones are Ledger and Trezor. Here is a comparison of the two wallets to help you decide which one should be your go-to crypto wallet.
The most important thing you need out of these wallets is security. Both wallets let you generate offline security keys and provide a recovery seed (a list of words in a specific order that helps you recover a wallet) which can be accessed using a personal identification number (PIN). So even if your wallet is lost, it still cannot be accessed without your PIN.
For an additional layer of security, Ledger has a double chip base with the second chip being a bank-grade secure element (SE) to protect against hardware attacks. Trezor doesn’t use the same kind of secure hardware due to its closed-source nature, which the company believes is against the open and transparent nature of crypto.
The closed-source nature of Ledger’s hardware prevents third-party testing for vulnerabilities. However, a plus point of Ledger devices is that you can directly enter your password into the wallets, whereas for Trezor you need an additional keyboard to enter the password. Using an external keyboard opens up your wallet to vulnerabilities, like keylogging (using software to track everything a person types).
The higher-end Trezor model, Trezor T, helps users secure their holdings on supported applications. Trezor T can be used as a password manager; it generates one-time passwords for supported apps. While this has nothing to do with the security of the wallet, it does protect your holdings online.
Cost of the wallet
Both Ledger and Terzor have two different models of wallets—Ledger Nano S (US$59) & Ledger Nano X (US$119) and Trezor One (US$60) & Trezor Model T (US$190).
Types of cryptocurrencies supported
Both Ledger and Trezor are multi-currency wallets that allow users to hold 1,800 and 1,649 cryptocurrencies respectively. However, Trezor One supports a smaller number of cryptocurrencies than Trezor Model T, whereas both models of Ledger support the same number of cryptocurrencies.
Both wallet types also have incorporated crypto exchanges into their interface. One major difference is that users with ERC-20 tokens (tokens on the Ethereum network) on Trezor would need additional wallet software, like MetaMask, because these tokens have not been currently integrated into the Trezor wallet.
Hence, to keep them secure, additional wallet software is required. In contrast, ERC-20 tokens are directly supported on Ledger. Ledger also supports 24 third-party wallet applications as opposed to Trezor, which only supports 18.
Ease of use
Both Ledger’s and Trezor’s devices are easy to set up, and users are guided along every step. The lower-end models from both companies have a smaller display screen with buttons. Users might consider Trezor devices comparatively more comfortable to use because they have a bigger display than that of Ledger’s.
Both of these wallets have buttons to manage and navigate the software, but Trezor One’s buttons are easier to use than Ledger’s because they are spaced further apart from each other, preventing the risk of pressing both simultaneously.
As far as the higher-end models are concerned, Trezor again takes the lead with its color touchscreen. However, an advantage of using Ledger is that it is compatible with mobile devices via Bluetooth, whereas Trezor requires a USB connection.
Ledger devices work with the Ledger Live application on mobiles (both Android and iOS) as well as the computer. Users can access the application to set up their wallets, manage accounts, check their crypto balances in real-time and make transactions. Trezor also has a desktop application called Trezor Suite and an Android application, which was launched in the latter half of 2021. Users can use the Trezor Suite to manage their crypto portfolios and access compatible exchanges.
Besides supporting their own applications, both wallets are also compatible with a range of external apps. Ledger is compatible with apps, like MyEtherWallet, Binance, GreenBit, Magnum and Copay. Trezor also supports a lot of the same applications along with other apps, like MultiBitHD, Mycelium and Electrum.
So… which one should you choose?
Before you make a choice, here is a summary of the key features of Ledger and Trezor wallets:
|Feature||Ledger Nano X||Ledger Nano S||Trezor One||Trezor T|
|Number of Cryptocurrencies supported||1,800||1,800||1,649||Supports fewer currencies than Trezor One and Ledger models|
|Ease of use||Harder to use due to smaller screen and need for additional apps but has Bluetooth connectivity||Harder to use due to closely located buttons and need for additional apps but has Bluetooth connectivity||Easy to use due to touchscreen||Easy to use due to spaced out buttons|
|App compatibility||Compatible with a lot of apps and has its own Android and iOS app||Compatible with a lot of apps and has its own Android and iOS app||Compatible with a lot of apps and has its own Android app||Compatible with a lot of apps and has its own Android app|
|Security||Secure, with double chip base||Secure, with double chip base||No double chip, but is open source for third party verification||No double chip, but is open source for third party verification|
The two wallet types share a fair bit of similar features with each other. Now the choice is yours, if you prefer a wallet that has a touchscreen and can be verified by third parties, Trezor might be the one for you. But, if you want a wallet that supports more currencies and is easier to connect to your phone, Ledger might be the better choice. You must carefully consider what your needs are before you settle on either of the wallets.
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Image courtesy of Ledger and Trezor’s websites