A Hardware Wallet for All Occasions – Bitcoin Exchange Hacks Increase Need For Trezor Cold Storage Solution
This post contains affiliate links, but the author was not paid or gifted a device to produce a review.
Barely a week goes by without another splash headline about a crypto exchange being hacked resulting in the loss of millions in Bitcoin.
The adage ‘not your keys, not your coins’ has never been more relevant, with more and more people delving into the world of digital currency than ever before.
If you’re not family with the phrase, it simply means that if you use an exchange to store your coins then they are the custodian of your private and public keys. This data is then vulnerable to a hacking attack and your coins can potentially be stolen.
This is why many crypto investors, or even those who have a small holding, are taking their crypto offline and using a ‘cold storage option’, such as a hardware wallet like the Trezor One to secure their coins.
There are other hardware wallet manufacturers out there, but SatoshiLabs, the company behind Trezor, is one of the best known well established, and has a strong and trusted history in the hardware wallet space.
SatoshiLabs currently produces two models – the Trezor One and the Trezor Model T. The former being a simple, cost-effective solution and the latter a more expensive, touchscreen version.
For the purposes of this review we’ll be looking at the Trezor One which we bought with our own funds in order to produce a balanced and unbiased review.
The first thing to say is that the Trezor is very straightforward and does not require any specialist technical knowledge. A basic understanding of crypto wallets is recommended though.
Our Trezor arrived in a reassuringly robust tamper proof box to ensure that no nefarious actors had meddled with the device and potentially made it vulnerable to attack.
The device itself is quite small and light, but still manages to feel robust enough to throw in your pocket and not worry about too much.
The package contains a USB cable to link it your PC and a simple lanyard attachment. We ended up using the device on a mobile, which required a specific cable. This was easily and cheaply obtained from Amazon.
Setting up the device is extremely straightforward and doesn’t require any specialist technical knowledge at all. The only part which some people might find daunting is when you’re prompted to create a 24-word recovery seed (see below):
The device prompts you to write down a series of words on a supplied card which will be used to recover your Bitcoin if ever your device is lost, stolen or gets broken.
Secure your seed phrase
It’s vitally important to make an accurate note of your seed phrase as your cryptocurrency will potentially be lost forever without it. Keep this card safe and never put the information it contains online.
Once this is done and you’ve set up a five-digit pin number you’re good to go - you’re now officially your own bank!
The Trezor platform generates Bitcoin addresses for you to use to receive crypto. Some people recommend using a different address for each transaction to help preserve your anonymity, but that’s a matter of personal choice.
The bundled software and app are extremely intuitive and are a breeze to use to use, with everything working as it should without complications.
And when it comes to sending coins to another address, Trezor automatically suggests different levels of fee to add to the transaction to influence how quickly it’s confirmed.
Given the number of exchange hacks that seem to occur in the crypto world, keeping your Bitcoin stored on a Trezor will give you piece of mind that they are safe, especially if you’re a hodl-er building up an investment pot.
It’s also incredibly empowering to know that you’ve got your own portable bank in your pocket giving you complete financial autonomy – one of the core aims of Bitcoin when it was first developed by its pseudonymous creator Satoshi Nakamoto.
The only criticism we have is the price – the Trezor One, which is the most basic device (although sufficient for most people) costs around 60 Euros at the time of writing.
We feel this is a little high given most people only hold a small amount of crypto and is another barrier to the wider adoption of Bitcoin. Thirty Euros seems a more acceptable price.
Having said this, as more and more people join the Crypto world demand for secure cold storage will only increase and Trezor is ideally placed to capture a large slice of the new market with its simple and effective solution.