Trezor Wallet: Everything to Know

By  Beluga Research July 23, 2023

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Summary

  • Trezor is a hardware wallet that offers a user a secure way to store private keys and manage cryptocurrencies
  • IT connects to a computer or mobile device via USB
  • Trezor was the first crypto hardware wallet to be released in the market
  • Use of a Trezor wallet requires a download of the Trezor Suite software

Overview

Trezor is a hardware wallet that offers users a secure way to store private keys and manage cryptocurrencies. Trezor was created by SatoshiLabs, a company based in the Czech Republic. It was the first hardware wallet for the cryptocurrency ecosystem. The Trezor wallet is a popular choice for cryptocurrency enthusiasts.

A Brief History

In 2014, a group of developers led by Marek Palatinus, aka Slush, introduced the Trezor wallet. The goal of the team was to create a device that would allow users to store private keys offline. Offline storage is more secure than storage on a computer or mobile device.

In 2018, SatoshiLabs released the Trezor Model T, an upgraded version of the original Trezor wallet. The Model T features a touchscreen display and supports a wider range of cryptocurrencies. This makes it a more versatile option for cryptocurrency users.

What is a Trezor Wallet?

A Trezor wallet is a hardware wallet used to store private keys. It is a small physical device that connects to a computer or mobile device via USB. The Trezor Suite software, which is necessary to use the wallet, provides a way for a user's computer or mobile device to communicate with the wallet.

A user who sets up a Trezor wallet will be prompted to create a PIN code, a set up numbers to access the wallet. They will also be prompted to create a recovery seed, a list of 24 random words used to recover the wallet. The recovery seed helps a user gain access to the wallet if the wallet has been lost or stolen. A user should keep their recovery seed in a safe place. Anyone with access to the recovery seed can utilize the Trezor wallet.

A party can use a Trezor wallet to send, receive and trade cryptocurrencies. Sending cryptocurrencies involves connecting a Trezor wallet to a computer or mobile device and entering a PIN code. The user is then prompted to confirm the transaction on the Trezor device. Receiving cryptocurrencies involves providing the sender of the cryptocurrency with the wallet address. This can be found in the Trezor wallet.

Getting Started

  • Connect the Trezor wallet to a computer or mobile device with a USB cable. The user will then be prompted to download and install the Trezor Suite software. This allows the Trezor device to communicate with a computer or smartphone.
  • Create a new wallet on the Trezor device. This involves choosing a PIN code, which the user employs to access the device and sign transactions. They should choose a PIN code that is difficult to guess but can be remembered.
  • Send and receive cryptocurrencies. The Trezor wallet supports a wide range of cryptocurrencies, including bitcoin, ether and litecoin, among others.

Unique Aspects

  • Open-source firmware. The code used to operate the Trezor device is publicly available for review and can be audited by any party. Such transparency ensures that the device is secure and free from any backdoors or vulnerabilities.
  • Support for multiple cryptocurrencies. Some hardware wallets only support a few cryptocurrencies. The Trezor wallet supports over 1,000 coins and tokens. It is a versatile device that can be used to store and manage a wide range of digital assets.
  • Passphrase feature. This feature adds an extra layer of security to the wallet. With a passphrase, anyone who gains access to a user's device still needs to know the user's passphrase to access funds. This feature is particularly useful if a user is storing a large amount of cryptocurrency on a device.
  • Designed with user privacy in mind. The device does not collect any personal information about users. All transactions are signed locally on the device. This ensures their private keys never leave the device.

Advantages

  • Security. Trezor hardware wallets are designed to provide maximum security for cryptocurrencies. They store private keys offline, making it impossible for hackers to access remotely. Additionally, Trezor wallets use a PIN code and a recovery seed to protect funds in case a device is lost or stolen.
  • Ease of use . Trezor wallets are easy to use, even for beginners. They come with a simple interface that allows a user to easily manage cryptocurrencies. Additionally, Trezor wallets support multiple cryptocurrencies. This simplifies management of multiple digital assets with one device.
  • Compatibility. Trezor wallets are compatible with a wide range of operating systems, including Windows, Mac and Linux. They can be used with popular cryptocurrency wallets such as MyEtherWallet and Electrum.
  • Open-source. Trezor is an open-source project. The code is available for anyone to review and edit. This adds an extra layer of security as the code can be audited by independent security experts.
  • Customer support. Trezor provides excellent customer support. They have an extensive knowledge base on their website. There is also a dedicated support team that can help a user with any issues.
  • Use of CoinJoin. A holder of a Trezor wallet can keep bitcoin transactions more private. They can use the CoinJoin process to make the origin of the coins difficult to trace. The CoinJoin process involves multiple parties signing a smart contract to mix coins. The process mixes the users' addresses, which makes it hard to determine which parties provided the coins.

Disadvantages

  • Cost. A Trezor wallet can be more expensive than software wallets. The cost is justified by the added security. Yet it presents a barrier for some users.
  • Limited availability . Trezor wallets are not as widely available as software wallets. They can be purchased online but may not be available in local stores.
  • Physical vulnerability. These wallets are designed to be durable. Yet they are still physical objects that can be lost, stolen or damaged. They can also be affected by environmental factors, including extreme temperatures and exposure to water.
  • Compatibility issues. Trezor wallets are compatible with many operating systems and cryptocurrency wallets. They may not be fully compatible with all operating systems and software programs.