Whether you’re a hodler or a trader, crypto security is paramount. Methods of protecting your digital assets from online and offline threats vary. Typically, though, the optimal solution involves using a mix of cold and hot wallets.
The latter, while convenient for quick access and everyday transactions, are connected to the internet and can be vulnerable to hacking or phishing attacks. Cold wallets, on the other hand, offer a higher level of security by storing your crypto offline, making it far less susceptible to online threats.
In the world of hardware crypto wallets, two names stand out: Trezor and Ledger. Both offer robust security features, but each has unique strengths. Let’s dive into how these two compare to help you choose the best option for securing your crypto long-term.
Trezor vs Ledger – historical background
Trezor was the trailblazer in its niche. In Bitcoin’s early days, after a 2011 crypto conference in Prague, Pavol “Stick” Rusnák and Marek “Slush” Palatinus, Czech developers, began to think about a secure and trustless solution for storing digital assets. They decided to turn this idea into business in 2013 and founded a company. The first product, the Trezor Model One, was launched on July 29, 2014, marking the debut of the world’s first hardware wallet. The innovation led to significant advancements in security practices within the crypto community and inspired followers. In the following years, Trezor added Trezor Model T, then Trezor Safe 3, and finally Trezor Safe 5 to its inventory.
Ledger was the next project to offer top-quality offline storage for cryptocurrencies. The company was established in 2014 by Éric Larchevêque, Thomas France, and Pascal Gauthier. The team quickly gained recognition for its Ledger Nano S, which became one of the best-selling hardware wallets globally. Ledger has focused on combining high-level security with ease of use. Their devices use a secure Element Chip, similar to those used in credit cards, providing an additional layer of protection against potential threats. Since its inception, Ledger has expanded its product line to include Ledger Nano X and Ledger Nano S Plus. The latest additions to Ledger’s offer are Ledger Stax, launched in 2022, and Ledger Flex, introduced in July 2024 – each bringing new qualities to the brand’s offering, including the world’s first curved E Ink touchscreen (Stax).
Both companies have significantly contributed to making cryptocurrency more accessible and secure for users around the world, remaining at the forefront of cryptocurrency protection solutions.
Trezor vs Ledger – security features and considerations
When it comes to crypto wallets, security is the number one issue. So, for starters, let’s take a closer look at how both wallet providers ensure asset protection.
Ledger crypto security features
Ledger’s security is a multi-layered system designed to protect users’ private keys and crypto assets, but it’s not without potential risks. Here’s a short breakdown.
Secure Element chip
Ledger offers robust physical security with its Certified Secure Element (CC EAL5+) chip. It’s a military-grade component, also used in credit cards and passports, designed to resist physical attacks like power glitch (they change the circuit voltage for a brief moment) and side-channel attacks (they steal cryptographic keys by measuring coincidental hardware emissions). The Secure Element checks for tampering at each boot and powers all the functions of the Ledger wallet: generating and storing the private keys, running the code, powering the Ledger OS, running cryptographic operations, and running all the apps. Ledger provides proof that the chip is genuine.
BOLOS operating system
Unlike Trezor, Ledger relies on closed-source, proprietary firmware, giving them tight control over the code. The company developed a custom OS called Blockchain Open Ledger Operating System or BOLOS. The software works within the Secure Element chip to run each app and ensure that they operate independently, preventing any single point of failure within the wallet.
Secure screen
Device screen is a common vector of attack. That’s why Ledger went an extra mile to develop a secure screen controlled directly by the Secure Element chip, isolated from the internet connection. The tamper-proof screen allows you to verify the real recipient’s address, ensuring transactions are sent to the correct destination even if your connected device is compromised.
PIN code
All Ledger hardware wallets are protected by a 4-8 digit PIN code set by the user. Entering an incorrect PIN three times resets the device to factory settings.
Hidden wallet
Ledger supports hidden wallets through the use of passphrases. By adding a passphrase to your recovery phrase, you can create a new set of secret accounts that are not accessible with the standard 24-word recovery phrase alone. This feature adds an extra layer of security and plausible deniability, as even if someone gets hold of your recovery phrase, they won’t be able to access your hidden wallets without the passphrase.
Seed wiping system
Ledger hardware wallets have a native seed-wiping system via the Secure Element in the event of a physical hacking attempt.
Hardware security
Ledger Nano X and Ledger Nano S Plus have stainless-steel casings, making them durable and immune to physical damage. However, Ledger Stax and Flex have a different build but they also combine metal (aluminum frame) with plastic (back cover).
Ledger cold wallets – key considerations
Ledger is most secure when used as a cold storage wallet. Connecting to dapps, staking directly from the wallet, or using swap features increases the risk of exposure to vulnerabilities. Hackers cannot directly access your offline wallet, but they can use phishing to steal sensitive account information and gain access to your funds. Remember to buy Ledger devices directly from the manufacturer to avoid devices compromised before reaching you.
Lastly, it’s worth mentioning the controversies around Ledger Recover. The feature (it enables sharding recovery seeds and dividing them among third parties) has sparked confusion in the crypto community, with some arguing that it compromises the fundamental principles of a cold wallet. Still, it’s an optional program that users have to opt into and can’t be forced into it.
Trezor crypto security features
Trezor’s security approach emphasizes transparency, user control, and robust recovery mechanisms to safeguard your crypto assets. Here’s a detailed look.
Secure Element chip
Trezor has made a significant advancement in its security with the integration of a dedicated Secure Element chip, specifically the OPTIGA™ Trust M (V3) – first introduced in the Trezor Safe 3 and then in Trezor Safe 5. Like in Ledger devices, the chip provides top-tier protection from software and hardware attacks.
PIN protection
Like Ledger, Trezor offers a personalized PIN code that prevents unauthorized access to the device. The wallet allows five incorrect PIN attempts, and then enforces an increasing time delay before the next attempt, thwarting brute-force attacks.
Hidden wallet
Trezor also adds an extra layer of protection to your wallet backup. By using a custom passphrase, you can create a hidden wallet on top of your existing backup, making it virtually unbreakable. The passphrase is not stored on the device, further enhancing security.
Open-source firmware
Trezor’s software is open-source, allowing the community to scrutinize the code for vulnerabilities and quickly patch security loopholes.
Secure bootloader
Trezor implements multiple layers of code to ensure the legitimacy and safety of operations executed by the device. The bootloader verifies the device’s firmware signature, preventing malicious or tampered firmware from running.
Trusted display
Trezor’s Trusted Display feature is similar to Ledger’s Secure Screen. Both features ensure that the information displayed on the device is verified and secure. With Trezor’s Trusted Display, the device shows verified information directly from the hardware wallet, ensuring that even if your computer is compromised, the correct information will be displayed on the Trezor device.
Shamir Backup
Trezor’s Shamir Backup enhances the security of a crypto wallet by splitting the traditional recovery seed into multiple unique shares. You can create up to 16 shares, each a sequence of 20 or 33 words, and designate a threshold, which is the minimum number of shares needed to recover your wallet. This method protects against both theft and loss – even if some shares are compromised or lost, your wallet remains recoverable as long as you have enough shares to meet the defined threshold.
Hardware security
Trezor Model One and T are made of PC/ABS engineering thermoplastic blend, while the Safe models are protected by anodized aluminum backplates.
Trezor cold wallets – key considerations
While Trezor provides top protection against digital threats, it’s crucial to safeguard the physical device itself from potential physical damage. Trezor does a good job but is not on par with metal-based protection of Ledger’s earlier devices. Trezor’s wallets are also bigger than the two Ledger models, which might make them less convenient to handle and potentially more conspicuous if that’s a factor you want to consider.
Ledger vs Trezor – security comparison summary
Both Ledger and Trezor offer robust security but approach it differently. Ledger emphasizes hardware-based security in a metal case (Nano X and Nano S Plus), but its firmware is closed-source. Trezor prioritizes transparency with its open-source software, allowing for community audits and greater trust, and offers Shamir Backup, which splits the recovery phrase for enhanced security. The choice depends on prioritizing hardware-level security and an integrated experience (Ledger) or open-source transparency and community-driven security (Trezor).
Ledger vs Trezor: usability and features
Now, let’s talk about usability. While security is crucial, ease of use is also a key consideration when choosing a hardware wallet – especially if you plan to use it regularly, not just stash it away. Both Ledger and Trezor offer convenient solutions, but they approach user experience differently. Let’s take a look at the key features of their wallets.
Hardware and design
Ledger is known for its compact, sleek design. The Ledger Nano S and Nano X are small, USB-like devices that can easily fit into a pocket or be tucked away in a drawer. The devices have a robust aluminum body, making them durable but lightweight. The Nano X, which supports Bluetooth connectivity, is slightly larger to accommodate the wireless feature, but it’s still fully portable. However, Ledger Stax and Ledger Flex bring things to a different level. Both wallets feature a sleek, credit card-sized E Ink touchscreen. The screen spans the entire front of the device and curves onto the back, offering clear readability in various lighting conditions. Made of black aluminum with embedded magnets, the Stax allows multiple devices to be stacked securely. Flex also provides great user experience with customizable touchscreen. Both models require careful handling, though, due to the lack of metal casings.
As already explained in the security section, Trezor wallets, specifically the Model One and Model T, are made from plastic only, which makes them potentially less durable than the older Ledger models with their metal cover. On the other hand, the Trezor Model T and Safe 5 stand out for their vivid touchscreens, which make them more intuitive to use compared to the Nano S or Nano X button-based interface. The touchscreen is especially handy when navigating through the wallet’s options and entering passphrases.
Overall, the older Ledger models win on durability with their metal casings but their reliance on buttons for navigation might feel a bit less intuitive compared to Trezor’s touchscreen. This could be a deciding factor for users who are new to cryptocurrency or want a more seamless, modern experience.
Software and ecosystem
Ledger devices rely on Ledger Live for wallet management. It’s an official app that allows you to send, receive, and stake cryptocurrencies. The app also supports buying, selling, swapping, and even earning rewards through staking or DeFi integrations.
It’s available on desktop (Windows, macOS, Linux) and mobile (iOS, Android), with Ledger Nano X supporting Bluetooth for a wireless connection. Ledger Live also lets you install and manage different blockchain apps on your device, since Ledger wallets have limited storage for different cryptocurrencies.
Essentially, while your private keys stay locked inside your hardware wallet, Ledger Live gives you an easy-to-use interface to interact with your funds. You can check out more details on their official website: Ledger Live.
Trezor Suite does more or less the same for Trezor devices. The app – available for both desktop and mobile devices – is a user’s command center for secure crypto management. Through Trezor Suite, you can send and receive a wide variety of cryptocurrencies, from Bitcoin and Ethereum to various ERC-20 tokens, without risking the disclosure of your private keys. The interface allows you to manage multiple accounts (up to 10 for each cryptocurrency), and you get a clear overview of your entire crypto portfolio with a handy dashboard that displays your total balance and recent transaction history.
Trezor Suite also offers advanced features, such as coin control, which allows you to select which specific parts of your holdings to use for a transaction. Plus, an integrated exchange lets you swap cryptocurrencies right within the app. Trezor also lets you connect to your own Bitcoin full node for maximum control and privacy. For reference, Ledger has only recently developed SatStack a lightweight bridge connecting its Live app with a personal Bitcoin full node.
What’s more, Trezor Suite uses Tor by default, making it harder to link your IP address to your Bitcoin activities. However, other advanced features like staking and NFT management often require integration with third-party wallets.
If you’re frequently on the move, Trezor Suite Lite is available as a mobile app for both iOS and Android, but it doesn’t have all the features of the desktop version.
Staking capabilities
Ledger is generally considered the better choice for staking due to its wider support for cryptocurrencies and integrated features via Ledger Live. The app allows users to stake coins and tokens such as Ethereum, Solana, Cardano, Tezos, Tron, Cosmos, Algorand, Polkadot, Osmosis, and many more. Overall, Ledger provides a more integrated experience through its platform, enabling direct access to staking and NFT management without needing third-party software.
Trezor also offers staking for Ethereum through the service provided by a third party, Everstake. Apart from that, users can stake Cardano directly from the wallet. But that’s it for Trezor Suite. In short, Ledger easily prevails regarding staking.
Supported coins
All Ledger wallets support over 5,500 cryptocurrencies – a much greater number than Trezor. Overall, Ledger devices are more comprehensive for users managing complex portfolios with niche or emerging cryptocurrencies. The company details all Live app-supported coins and tokens on its website classified into send/receive, buy, swap, and stake functions as well as its hard wallets’ compatibility with third-party wallets.
Trezor supports over 1,500 cryptocurrencies – not bad, but far fewer than Ledger. The exact number is hard to determine, as the company only mentions “hundreds” of supported coins. Additionally, support varies across different assets. Trezor provides a detailed list of supported currencies and tokens, categorized for easier navigation. Users can select a specific wallet from a drop-down menu to check whether a given asset is supported for sending, receiving, buying, selling, swapping, or staking.
Trezor vs Ledger – price comparison
You shouldn’t compromise on security to save a few bucks, but trade-offs regarding usability may be reasonable depending on your needs. Both brands offer products with varying features and significantly different price tags. Let’s quickly run through their offer and compare cost effectiveness.
Trezor wallets
Trezor Model One – with prices starting at $69, this entry-level wallet provides essential security features suitable for beginners.
Trezor Safe 3 – is available for $79 and offers enhanced security features and a monochromatic display with physical buttons.
Trezor Model T – priced at $129, it provides advanced security and includes a touchscreen.
Trezor Safe 5 – sold at $169, this premium model features a 1.54” color touchscreen with haptic feedback.
Ledger Wallets
Ledger Nano S Plus – at $79, this model offers a balance between affordability and functionality.
Ledger Nano X – at $149, it features Bluetooth connectivity for mobile use.
Ledger Flex – priced at $249, it features a 2.84-inch E Ink touchscreen, Bluetooth connectivity, and supports NFTs.
Ledger Stax – the premium model with advanced features, priced at $399, designed specifically with cryptocurrency and NFT management in mind.
Trezor vs Ledger – cost-effectiveness and value for money
In terms of cost-effectiveness and value for money, the choice between Trezor and Ledger devices largely depends on your priorities. Trezor’s Model One offers an affordable entry point into hardware wallets. It’s a good choice for beginners, though it lacks support for some popular cryptocurrencies. On the other hand, Ledger’s Nano S Plus, at a slightly bigger price, provides broader asset compatibility and a more modern design, making it a moderately better choice for users needing wider coin support.
In the mid-range, Ledger’s Nano X stands out with Bluetooth connectivity, allowing users to manage assets on the go, whereas Trezor’s Model T justifies its higher price with a touchscreen interface and an emphasis on open-source security. Both models offer strong security features, Ledger’s use of a Secure Element chip is a key advantage in protecting private keys, while Trezor counters with Shamir Backup for enhanced recovery options.
For premium users, Ledger’s Stax, priced at $399, is a luxury device designed for seamless NFT and crypto management with a curved E Ink touchscreen. Trezor doesn’t have a direct competitor in this price tier, making Ledger the only choice for users looking for a high-end experience. Overall, Ledger offers a wider range of options with stronger security hardware, while Trezor appeals to those who prioritize transparency and open-source software.
This article was originally Posted on Coinpaper.com
