For long-term storage of Bitcoins or Ethereum, it’s not safe to store your cryptocurrency in an online wallet or exchange. Even keeping a live wallet on your own hardware is lower risks. You can minimize your exposure to hackers as well as untrustworthy people in your home or office.
1. TREZOR
What is TREZOR?
TREZOR is a single purpose computer which signs Bitcoin transactions made through a desktop or web-wallet. It makes transactions completely safe even on a compromised or vulnerable computer. TREZOR provides the highest possible security for all Bitcoin and Litecoin users (Dash, Zcash, Ethereum, Ethereum Classic and all ERC-20 tokens.), even the non-technically savvy ones. Because the use of TREZOR is very easy and intuitive we believe it will help Bitcoin being adopted by common people.
How does TREZOR work?
The mechanism of making transactions with TREZOR is simple as this:
- 1. Connect the device to the USB and run your wallet software.
- 2. The device is automatically recognized by your computer as a new USB device.
- 3. Once the wallet software asks for the master public key, it will show your addresses and their balances.
- 4. When you want to send some coins, your wallet software creates a template of the transaction and sends it to TREZOR.
- 5. TREZOR displays a transaction summary and asks you to confirm the transaction by pressing the confirmation button.
- 6. TREZOR signs the transaction using a private key stored in the device and sends a signed transaction to the wallet software.
- 7. The desktop software then sends the signed transaction to the Bitcoin network.
How is TREZOR different from an encrypted wallet?
Even using a strong password doesn’t prevent viruses to silently sit on your computer and wait until you want to transfer coins out of your wallet. This is a vulnerable point, because a virus has access to the wallet file and can read your passphrase from your keyboard.
On the contrary, TREZOR never sends private keys to the computer, because when you want to send some coins out of your wallet, TREZOR asks bitcoin software for payment details, signs the transaction internally and then sends back just a digital signature of the transaction. There’s no point where malware on your computer could access the private keys or send away your coins without your permission.
Price: $99
2. KeepKey
KeepKey is a secure cryptocurrency HD wallet that was launched in 2015. This wallet is easy to setup but also has some more advanced features then TREZOR OR LEDGER, making it a great choice for Bitcoin users!
KeepKey’s pin code and number randomization
1) your wallet is secure from physical theft.
2) that a hacker couldn’t steal bitcoins from your wallet with malware.
KeepKey vs. TREZOR
- The design of the two devices also differ
- KeepKey is aluminum, and heavier.
- TREZOR is plastic and lighter.
- TREZOR is more drop-proof than KeepKey.
Does KeepKey Work with Altcoin?
KeepKey can be used to store Litecoin, DASH, and other altcoins. It’s up to software wallet developers to integrate support–the device itself is compatible with any altcoin.
Price: $99
The company founded in January 2015, Ledger is a French startup that combines the strong expertise of its co-founders in security, smartcard, cryptography, and embedded hardware.
The Ledger Nano S is hardware wallet, supports Bitcoin, Litecoin, Ethereum and altcoins to hold different assets. Like KeepKey or TREZOR, it can be used even on a computer that is infected with malware.
Your private keys are never held or known by Ledger or a third party: they are hard locked in the Secure Element. With Ledger Nano S, your wallet remains decentralized, you are your own bank.
Ledger Nano S ensures only you can access your accounts by requiring a 4 digit PIN code each time it is plugged to your computer.
When you setup your Nano S, the wallet generates a recovery phrase. The recovery phrase is a complete backup of your wallet.
On a normal Bitcoin wallet, like an iPhone wallet, the recovery phrase is displayed on your phone’s screen.
Since your phone is connected to the internet, it’s very possible that someone could hack into your phone to 1) steal your bitcoins or 2) snatch your recovery phrase.
When you own bitcoins, storing and protecting them is your own responsibility. The Ledger Nano S is accessible to all, and secured, thanks to highest banking industry standards. Your account can be backed up and restored if your Nano S is lost or stolen. You can use your Ledger Nano S on any computer, PC, Mac or Linux. Anybody can install and use it without technical skills.
Price: 58 Euro
Bitcoin Wiki 