The Need for a Hardware Wallet
New to this Cryptoworld and doing your analysis for best way of storing your cryptocurrencies? Then, surely you would have come across the major types of Crypto wallet until now. The three major types including Online, Software and Hardware wallet. The Online wallet, also called as the hot wallet is usually connected to the internet all the time making it prone to external hacks and viruses thus costing your wallet storage completely.
On the other hand Software wallet the private keys and the complete safety will be handled by the user as the software will be installed locally in a PC. The software wallet will be open to computer hacking, hardware damages, viruses and other PC damages. These reasons thus lead to the use of third option for storage purposes of Cryptocurrencies- Hard ware wallets.
Advantages and Disadvantages of a Hardware Wallet
This feature makes your Cryptocurrency storage more secured Unlike hot wallet.
This makes the wallet immune to any kind of Remote attacks and if strong password is been used then the device will be much more protected from illegal hacks
Since while using your hardware wallet you will the sole handler of your keys, this makes the storage more secured.
Functionality and Convenience
Unlike online wallet, Hardware wallet has limited functionality and convenience in the usage of stored cryptocurrencies
Since hardware wallet is handled offline, this limits the storage capacity to minimum level compared to the other two.
Below we will be discussing about Trezor wallet and how Trezor wallet overcomes these disadvantages mentioned above.
What is Trezor?
The Trezor Hardware wallet was developed by the company SatoshiLabs in 2014 located in Czech Republic and is one of the first and most secured hardware wallet ever released for the storage of Cryptocurrencies in offline mode(without any internet connection).The Trezor wallet has the provision for the storage and exchange of wide range of Cryptocurrencies. Tresor cannot to affected by any kind of malware as it will not be connected to the online server. Its much easy to use and has simple user interface and is Widows, OSx, Mac OS, AndroidOS and Linux friendly. Trezor make it easy to store a large number of cryptocurrencies in a secured and inactive manner even for a long period of time.
The Trezor have introduced two models- Trezor One and Trezor Model T. Trezor one is the first introduce model which is basically operated with the help of provided two buttons. Later the Next generation Hardware wallet called the Trezor Model T was introduced which include modern as well as intuitive interface for the best user experience. It is accesses based on the touch screen on the device.
The Trezor device is small and easy to carry and if there a need to carry out any transaction by connecting the device to any computer. For more security the Trezor allows limited USB connection. If stolen, the pin generated initially for the device can used to recover user’s Cryptocurrencies.
Trezor Supported Coins
Trezor wallet supports near to 1085 coins and tokens. The most common ones include Bitcoin, Etherum, Bitcoin Cash, Litecoin, Dash, Ethereum Classic, NEM, Zcash, Bitcoin Gold, Gogecoin, VeChain, Decred, Qtum, DigiByte, Icon etc.
List of all the coins and tokens supported by Trezor
The Cryptocurrencies supported by only Trezor Model T are Ripple, Cardano, Monero and Tezos.
Unique Features of Trezor wallet
Transparent and Open source mode of security- The components that stores and manages the private keys and digital identities are transparent(I.e)any developer can read and verify about the function of the device.
The accessing of wallet using PIN number by the user in order to buys or sell the crypto coins- To avoid unauthorized physical access the by setting up PIN which is 4-10 numbers long.
Handing of Private keys only by the user- There wont be any third party holding the users private keys.
The provision of Recovery seed- The recovery seed consist of 12-24 words which will be uniquely generated by Trezor, initially during the set up of the device. This sentence must be kept safely in case the users device get lost, it will help in recovery of data and Cryptocurrencies in a new device when the seed is entered as such.
The Passphrase protection- The passphrase contains words or sentence which when set up, the user will be asked for passphrase every time trezor is used. With the help of passphrase the trezor will be impervious to any physical attacks. It even protects the wallet even if someone has stolen the Recovery seed for user. Without the passphrase the theif wont be able to access the Crypto coins.
The use of Cryptography to manage Passwords- the user will be able to encrypt each and every password by just a simple click in their trezor device. This data is then automatically uploaded in encrypted form to the user’s private cloud storage which will always be available when needed. The password manager can be handled using a simple pin.The wallet has the ability to store unlimited number of keys. One can generate as many hidden wallets using the Passphrase.
Top security features including U2F two factor Authentication and Password manager are being used in Trezor.
The Trezor screen also help to confirm the transaction between the interested recipient.
The Trezor buttons will help to avoid hackers trying to send or receive the cryptocoins as the buttons has to be physically pressed in order to carry out the transaction.
The device is small and sturdy- The device easily fits into the palm and it is tamper proof, water resistant and is extremely durable.
Both the Trezor model T and Trezor One has trusted display- Added to Trezor T has added feature of large full color touch screen which is an advantage in checking the address while sending and receiving crypto coins, for confirming the request for all major processes and for the display of recovery seed.
How Trezor Hardware Wallet Overcomes the Disadvantages?
Initially we discussed the disadvantages in most of the hardware wallet, now let us see how trezor helps to overcome the disadvantages.
The Functionality and Convenience is increased in Trezor as the user can use their device as a U2F token to use the required webservices or to encrypt/decrypt the passwords of the device (Trezor Password manager) or to access different apps and services.
The user convenience in Trezor adds up to the advantage. The ability to use the wallet whenever and wherever possible just by plugging the Trezor to carry out the transaction easily in any form is considerable. The user can use Trezor wallet to buy Crypto using Fiat or exchange the crypto using the In wallet Exchanges.
The storage capacity of Trezor device has no achievable limit. Thus making it more approachable in order to store large amount of Cryptocurrencies/ tokens.
Limited USB Connection- Even if a device gets infected by virus the cryptocurrency in the wallet wont be affected.
Protection against Keylogger- A key logger is a program watches and records what ever the user type, like all the passwords, personal information, etc. But the user can sign in to their wallet without any discrepancies since the Trezor’s smart pin Matrix will randomize the numbers typed by user to avoid pass-code detection be the keyloggers. Only the user can see the digits on the Trezor screen.
Firmware Updates- Continuous firmware updates are provided for the device whose details will be explained in the Trezor blog when ever needed in order to protect against newly evolving threats.
U2F mode of Authentication- While logging in the users needs to confirm the signin with a click on the Trezor device.
Phishing protection with the help of On screen Verification- If the user wishes to make the payment through online, its important to know the receiving address. Trezor helps the user by displaying the URL of the website the user is getting logged into and what the user is going to authorize
Protection against Brute forcing the PIN- Physically when the PIN is entered wrong, the waiting time between the attempts increases by the power of two. After 15 unsuccessful attempts the device automatically wipes itself the data present in it.
User’s stolen computer- Even if the users computer gets stolen, then user’s data will be secured within the Trezor device and the Trezor device can be used in another computer. Its not possible to loot the user’s fund without the Trezor device itself.
The Way to Setup the Trezor Wallet
I. Plug the Trezor wallet into the PCs USB port and once connected the device will show an image of a lock and the website to visit to. The website will provide you guidance about the features of the wallet.
II. The next step is to install the Trezor wallet which will enable the connection between the hardware wallet with the blockchain. This can be done by adding chrome extension or by directly downloading it in the device.
III. Then the latest firmware should be installed. The user will then be asked to check the Fingerprints on the device and the system. Select continue for the further processes.
IV. Now the unplug the device and reinsert it. Then again go back to “wallet.TREZOR.io”
V. Now the user will be asked to give a name to the wallet and the PIN, 24 word Backup Phrase will be set up by the user in the following process. A 24 lined paper will be present along with the Trezor box which can be used to jot down the phrase. Here with the user has completed the Trezor wallet set up process.
Transferring Funds to the Trezor Wallet
Plug the device to the PC and enter the PIN number and then visit the wallet via the chrome extension or through the software downloaded earlier. On the top left page, there will be a drop down box from which the user can select the cryptocurrency that has to be sent to the Trezor wallet. Then the receive option provided on the top of the screen has to be selected. Now the user will be able to see the unique wallet address for the cryptocurrency that has to be transferred. This address is then used (Copy&paste) in the user’s wallet in order to transfer the funds.
Sending Funds from the Trezor Wallet
Open the wallet and at the left end select the coin that has to be sent. Now select the Send option on the top of the page. Then add the wallet address of the person to whom the coins has to be sent. Once the required info is been filled up Select Send Option.
Now, you would have got an idea about the way Trezor wallet works. I guess by now you would have decided whether or not to buy Trezor wallet. If you are sure about getting one, then Pulsehyip, a foremost Cryptocurrency Wallet Development company will serve you the best for your cause.Get your Trezor hardware wallet support from Pulsehyip. Be open to approach our top technicians if you have any queries.