{"id":2751,"date":"2021-04-08T15:06:15","date_gmt":"2021-04-08T22:06:15","guid":{"rendered":"https:\/\/www.opennode.com\/blog\/?p=2751"},"modified":"2022-08-09T13:38:34","modified_gmt":"2022-08-09T20:38:34","slug":"bitcoin-hardware-wallets","status":"publish","type":"post","link":"https:\/\/blog.opennode.com\/blog\/bitcoin-hardware-wallets\/","title":{"rendered":"What are the Best Bitcoin Hardware Wallets?"},"content":{"rendered":"Reading Time: <\/span> 5<\/span> minutes<\/span><\/span>\n

A Bitcoin wallet is a software program or hardware device used to store relevant information such as the public and private keys<\/a> and facilitate transactions on the Bitcoin network. A broad distinction between the different types of wallets is whether they are “hot wallets” or “cold wallets”. Hot wallets such as a desktop, mobile, or exchange wallet stay connected to the internet whereas a cold wallet such as a hardware wallet does not, which significantly reduces the chances of the wallet being hacked. <\/p>\n\n\n\n

New investors typically start by buying Bitcoin on an exchange such as Coinbase or Binance and tend to keep their coins on the exchange wallet because of the convenience. However, if you don\u2019t have the private keys to your coins, you aren\u2019t actually in control of them. Also, if you fall victim to a phishing attack<\/a>, an attacker will be able to access your wallet and steal your Bitcoins because your private key is stored online. As the saying goes \u201cnot your keys, not your coins”. Keeping Bitcoin on Exchanges has been historically risky as Bitcoin exchanges have been the biggest targets for hackers<\/a>. This is why it\u2019s important to store your Bitcoins outside of an exchange. <\/p>\n\n\n\n

At OpenNode, we encourage everyone to store their coins in a hardware wallet because they offer the best tradeoff in terms of security and accessibility. Hardware wallets have an associated web, mobile, or desktop application that enables you to monitor your Bitcoin addresses and spend Bitcoin. Private keys are stored in the hardware wallet and never leave the device. When you want to confirm a payment, the transaction is signed inside the hardware wallet and the output is sent to the app. In this article, we\u2019ll be looking at some of the best Bitcoin hardware wallets available now. <\/p>\n\n\n\n

Trezor<\/h2>\n\n\n\n

Trezor<\/a> was the first legitimate and secure Bitcoin hardware wallet made by SatoshiLabs in 2014 and came to be one of the most renowned brands in hardware wallets. Trezor currently offers two models of hardware wallets, the Trezor One and the Trezor Model T. The Trezor One wallet has a small display and two buttons while the Model T is a more premium version with a touchscreen display, SD card slot, and some more additional features such as support for more cryptocurrencies and support for Shamir\u2019s Secret Sharing<\/a>, which is a way to split up your private key into multiple parts and spread them out. Trezor has its own web-based application called the Trezor Suite but can also integrate well with other popular software wallets such as Electrum, Exodus, or Mycelium. <\/p>\n\n\n\n

Trezor builds an isolated environment for offline transaction signing and minimizes the risk of private key discovery, even if the PC is infected by malware. When setting up your device and wallet, you set a PIN that you will use every time to access it and to protect your Trezor against theft. The Trezor then generates a \u201cseed phrase\u201d, a series of 24 words that you must write down and store away. The seed is generated offline and displayed on the wallet\u2019s screen, which ensures that the seed is never on an internet-connected device. Seed phrases are a common feature of all cryptocurrency wallets and are meant to restore your private keys in case you lose your device or forget your PIN code. Seed phrases should be stored somewhere safe and offline because if someone finds it, they\u2019ll be able to recover your private keys and access your Bitcoin without your Trezor wallet. After you complete the Trezor setup process, your private keys are generated and stored on the device. To make payments, you need to connect your Trezor to your computer and sign the transaction with your private key by pressing the confirm button on the device. <\/p>\n\n\n\n

Some additional security features include: <\/p>\n\n\n\n