Trezor vs. Ledger – Which Is the Best Hardware Wallet To Use With Bitcoin?
It's time to make the security of your BTC a top priority.
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Not your Keys, Not your Bitcoin.
I frequently repeat this golden rule in my articles. My goal is always the same: to make you aware that you only own the Bitcoin whose private keys you have in your possession. Any Bitcoin you leave in the hands of a third party is at risk. The risk is greater or lesser whether the third party is an exchange platform or a payment company like PayPal.
This is because PayPal will never give you access to your Bitcoin's private keys. The exchange platforms allow you to transfer your Bitcoin to cold storage of your choice, and this is a right you should use as soon as possible. This means that you should never have more BTC than you need on a trading platform.
A few weeks ago, I detailed 5 solutions for storing your Bitcoin outside the exchanges:
After reading this article, some people asked me what was the best option between a hardware wallet offered by Trezor and a hardware wallet offered by Ledger. As I had briefly explained, both companies offer excellent products. Nevertheless, there are some differences to be aware of before making your choice, which I propose to detail in the rest of this article.
Trezor vs. Ledger: device comparison of the two market leaders
The first thing you need to know, and that you may have figured out, is that Trezor and Ledger are the two leading crypto hardware wallet manufacturers in the world. Trezor is the originator of the first hardware wallet ever created. Ledger followed with great success, as the Ledger Nano S is probably the most popular hardware wallet, with over 1 million units sold worldwide.
So you are dealing with two heavyweights in the sector.
Both manufacturers offer two models: an entry-level model and a more powerful one. The level of security remains the same in both cases, but the storage capacities will vary from one model to another. On the Trezor side, you'll get the Trezor One and the Trezor Model T, while for Ledger, you'll get the Ledger Nano S and the Ledger Nano X.
The Trezor One and the Ledger Nano S are entry-level models. So I'm going to focus mainly on the capabilities of these two models.
Hardware (cold storage)
1,000+ cryptocurrencies (no support for XRP)
$70
Incorporated exchange: No
Device Size: 60mm x 30mm x 6mm
Mobile App: Android
Hardware (cold storage)
1,500+ cryptocurrencies
$55
Incorporated exchange: Yes
56.95mm x 17.4mm x 9.1mm
Mobile App: Android
Both hardware wallets are intended for the public ranging from beginners to advanced. The initialization phase of the wallets is identical in both cases:
Updating the device’s firmware
Creating a wallet
Creating a backup seed phrase
Creating a PIN for the device
It's something everyone can do. Ledger wallets offer an additional step with the installation of the Ledger Live App, which can be downloaded and installed like any other app and includes a built-in crypto exchange where users can trade different currencies. Trezor wallets interact with a computer through a Web-based interface on MyTrezor.com.
Trezor and Ledger wallets keep your Bitcoin in cold storage, which means that everything is stored offline, safe from hackers. To enhance security, Ledger uses Secure Element Chips. These are the same chips used in passports, SIM cards, or credit cards. The important thing to remember here is that all of these hardware wallets are still much more secure than any hot wallet.
Both wallets have a display screen. The screens are larger in Trezor, which allows you to see more lines of text. Those with vision problems may prefer Trezor's large color screens. This makes it easier to check addresses. The Ledger wallet screen does not support color. Text larger than the screen size will scroll slowly so you can read it all. This is not something that I think is critical, but it may be important for some users.
In terms of design, Ledger's wallets look like a USB stick and may look better.
Both wallets support a whole bunch of cryptocurrencies besides Bitcoin. The small exception on the Trezor side is that the device does not allow you to store XRP. Again, this isn't important to me, but if you're planning to buy XRP someday, it's good to take it into account when deciding. Finally, it's easier to interact with Ethereum or ERC-20 tokens, traded on the Ethereum Blockchain, with Ledger wallets. The support does not require any additional phase as with Trezor wallets.
Price-wise, the Ledger Nano S is slightly cheaper at $55, compared to $70 for the Trezor One. Prices are more expensive with the higher-end models: the Ledger Nano X currently costs $149, compared to $215 for the Trezor Model T. A notable price difference.
With these high-end models, you'll be able to store even more cryptocurrencies. The Ledger Nano X supports a mobile app for both Android and iOS, is battery-powered, supports up to 100 cryptos at once, and has a larger screen. If you trade, this is probably a better choice than the Nano S. The Trezor Model T supports more cryptocurrencies than the Trezor One, can also be used as a password manager, and also works as a U2F (universal second-factor) hardware token that generates one-time passwords for an extra layer of security on supported apps and websites. These are features that go beyond Bitcoin and cryptocurrencies.
Two top-notch devices. The choice will depend above all on the price and small details such as the design
Verdict: top-notch security products, with small differences that will give supporters of one brand or another
I may disappoint you, but since both products are top-notch in terms of security, which is the most important thing to me, I'm not going to steer you towards one or the other. Beyond security, the differences will depend on your preferences and profile.
The Trezor's larger, colorful screen will appeal to some, while the built-in crypto exchange of the Ledger’s wallets will give others more ease of use. The design of the Trezor One will leave something to be desired for others compared to the USB stick look of the Ledger Nano S which with its stainless steel body will be more durable.
The fact that Trezor does not support XRP and requires additional configuration steps for Ethereum or ERC-20 tokens may be a deal-breaker for some. Finally, others may not like having to install an additional application with the Ledger Live App.
The important thing is that you have very good products to take responsibility for the security of your Bitcoin, which is an essential thing. Finally, you should know that Block, Jack Dorsey's company, is currently working on defining a hardware wallet with a user-oriented approach since the community is being asked throughout the design process.
So we might have a third player that will revolutionize this market in a few months. To be continued!
Some reading
Bitcoin and KYC Policies – Everything You Need To Know (Risks, How To Protect Yourself, …). Whatever your choice, the important thing is to understand where the risks lie.
Four Essential Questions on Bitcoin Privacy and Anonymity Answered. An attempt to end the confusion of some newcomers to this world.
You’ve Bought Bitcoin, Congratulations! But What Does It Mean To Own Some Bitcoin? Where is your Bitcoin stored?
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