Ledger vs. Trezor: Which Is Better?

In the rapidly evolving world of cryptocurrencies, the concept of a crypto wallet plays a crucial role in securely managing digital assets. As its name suggests, a crypto wallet functions similarly to a physical wallet, but instead of holding cash and cards, it stores private keys, public keys and other essential information necessary for accessing and managing various cryptocurrencies.

To store your cryptocurrencies, you essentially have two options. You could use software wallets, also known as hot wallets, where your crypto is stored online — for example, through an exchange. You could also use hardware wallets. 

Hardware (physical) wallets are also known as cold wallets or cold storage. Two of the most prominent cold wallets are Trezor and Ledger.

In this article, we’ll explore everything you need to know about the similarities and differences between these two hardware wallets as well as their pros and cons so that you know which one suits you better.

Key Takeaways:

• A crypto wallet is a software program (hot wallet) or a physical device (cold wallet) that stores your private keys to your cryptocurrencies.
• Two of the most prominent cold wallets are Ledger and Trezor.

What Is a Crypto Wallet?

A crypto wallet serves as a digital storage and management system for cryptocurrencies, enabling users to store, send and receive digital assets in a secure and user-friendly manner. 

Crypto wallets provide a gateway to the decentralized realm of cryptocurrencies, empowering individuals to take control of their financial transactions and participate in a peer-to-peer (P2P), trustless network.

Crypto wallets come in various forms, catering to the diverse needs and preferences of users. They can be broadly categorized into two main types: hot wallets and cold wallets. Hot wallets, including desktop, mobile, and web-based options, are applications or platforms that are installed on computers or mobile devices. On the other hand, cold wallets are physical devices designed specifically to secure cryptocurrencies offline, offering enhanced protection against online threats.

Regardless of the type, crypto wallets share a common purpose: to facilitate the storage and management of cryptocurrencies and interaction with them. However, it's important to note that crypto wallets do not physically store the digital currencies themselves, as cryptocurrencies exist on a blockchain network. Instead, they store the private keys required to access and manage the funds associated with specific blockchain addresses.

Why Own a Hardware Wallet (Cold Wallet)?

So why exactly use hardware wallets instead of software wallets?

As suggested, hardware wallets offer you a way of storing private keys without the risk of your data being stolen or manipulated.

You may wonder: Why not just use a software wallet and simply secure my device? You can do that, but computer malware can be disguised as a legitimate software program and trick you into authorizing access to your computer. It may even get past your antivirus. 

Additionally, no one can access a hardware wallet without your permission. A hardware wallet operates offline, offering greater security for your private keys. Thus, using a hardware wallet is safer because it prevents hackers from accessing your private keys and stealing your cryptocurrency.

Cold wallets are physical hardware (like USB flash drives). They usually have a hard plastic case surrounding a small screen that distributes the information. In order to access your private keys, you’re required to set up a PIN. When you set up for the first time, the PIN is a list of around (generally) 12 to 24 words. This set of words is known as the seed phrase or seed recovery phrase. 

Write down the seed phrase and keep it somewhere safe, because if you lose your cold wallet or it becomes corrupted, you’ll need this seed phrase to re-access your crypto. You can then complete transactions with ease and simply confirm them through your hardware.

Ledger Wallet 

Ledger was launched in 2014 by a French company of the same name. The company was founded to find an optimal solution for securing private keys when performing transactions on a blockchain. 

Over the years, Ledger has launched a few products along with Ledger Live. One of its most successful products is the Ledger Nano S, released in 2016. Back then, Ledger Nano S was known as the “original hardware wallet.” It was priced economically at $59, and could be used to purchase, secure and manage cryptocurrencies. 

Following the Ledger Nano S, the Nano X was released in 2019 at the price of $149. The Nano X is an advanced model of the Nano S, with improved features such as more battery power, bluetooth communication (end-to-end encrypted), mobile usage and a bigger screen.

In April 2022, Ledger released the Ledger Nano S Plus to replace the Ledger Nano S. The Ledger Nano S Plus is by far Ledger’s best model, thanks to its affordable price tag of $79 and its myriad features such as bluetooth connectivity, large capacity, wide range of coin support, advanced security and easy setup. The Ledger Nano S Plus also differs from its predecessor as it’s DeFi- and NFT-friendly. With the introduction of the Ledger Nano S Plus, Ledger eventually ceased production of the Ledger Nano S by June 2022. 

Ledger will soon be releasing another product known as the Ledger Stax in the spring of 2023. Pre-orders have already closed for the $279 Ledger hardware device, but interested customers can opt to sign up for email notifications and be informed when the Ledger Stax becomes available for purchase. 

Both existing models of the Ledger are widely used, and the one that will suit you will depend on your needs. If you’re more likely to hold your cryptocurrencies over the long term, Ledger Nano S Plus might be suitable for you. However, if you actively (daily) trade cryptocurrencies, then you might find Ledger Nano X to be the better choice. 

Ledger has recently generated significant attention due to its unveiling of Ledger Recover, centered around user identification. This feature enables users to safeguard a backup of their recovery seed phrase, offering a way to regain access to their private keys if they ever lose their recovery phrase. However, Ledger has faced substantial criticism from users who perceive this development as a direct contradiction to the fundamental principles of noncustodial wallets. Additionally, the recovery service necessitates the submission of government-issued identification, resulting in KYC registration for each user. 

Ledger has attempted to assure users that their private keys and crypto funds are safe, and that the feature is an optional one that isn’t automatically enabled. However, users are still concerned about the security of their assets, as they believe the existence of such a feature can create vulnerability to potential attacks.

With the resulting backlash over the past week, Ledger has announced on its official Twitter page that the company has taken the crypto community’s feedback into consideration and will be delaying the launch of the Ledger Recover feature. Charles Guillemet, the chief technology officer of Ledger revealed a graphic on Twitter stating that a white paper on the Recover Protocol will be released “in the coming days” to “bring more verifiability to everything” the company does. 

Source: Twitter

Trezor Wallet

Launched in 2013, Trezor is based in the Czech Republic. As with Ledger, the purpose of this hardware wallet is to keep private keys offline and secure from potential hackers on the internet.

As the first hardware wallet ever released, Trezor has paved the way for the formation of other cold wallets. However, Trezor has established itself as one of the most eminent and safe cold wallets. The two models for purchase are the Trezor Model T and Trezor Model One.

Trezor One was released in July 2014 at the affordable price of $69. It has a 128×64 pixel, bright OLED screen that can display all the details required for a user to verify a transaction, and it comes with two buttons for navigation. In terms of connectivity, it uses a micro USB connector and is equipped with a 120-MHz embedded ARM processor (Cortex-M3). It supports over 1,000 cryptocurrencies.

The Trezor Model T is the updated model of Trezor Model One and costs $219. While Trezor Model One remains the more popular purchase among the two, Trezor Model T has more features that increase the efficiency of this cold wallet. The most significant new feature on the Trezor Model T is its 1.54” color LCD touchscreen.

Ledger vs. Trezor

Both the Ledger and the Trezor have made it much easier to securely store private keys. However, while the two are similar, they also have their differences. We’ll briefly compare and contrast these two hardware wallets so you’ll know which one suits you.

Supported Coins

Trezor supports more than 1,000 cryptocurrencies, while Ledger supports over 5,500 digital assets.

When it comes to the basic models — Trezor Model One vs. Ledger Nano S Plus — the latter is superior in that it supports more altcoins. In addition, Trezor One doesn’t support some major and popular cryptocurrencies, such as Ripple (XRP), Monero (XMR), Cardano (ADA) and Tezos (XTZ). Only the Trezor Model T supports them, but it’s also more expensive.

Security

There hasn’t been any reported case where Trezor or Ledger has failed to protect people’s data. Both wallets require a pin code and seed phrase to let you access your crypto wallet. Ledger also has a Secure Element chip to keep your crypto assets safe. The only way you’ll be vulnerable is if you write your seed phrase on a computer or other smart device that gets hacked (or otherwise share the seed phrase). So both the Ledger and Trezor wallets are safe to use. 

Of course, as mentioned above, there are doubts about Ledger’s security, due to its recent launch of Ledger Recover. However, since the company has decided to delay the launch of the feature and to instead accelerate its open-sourcing road map, users may feel more at ease when deciding whether or not to purchase Ledger. 

On the other hand, Trezor is open-source, which allows people to see the source codes and redistribute or modify them. This means bugs can be identified more easily, but there’s also a slightly enhanced security risk.

Ease of Use

Both Ledger and Trezor are very simple to use. The basic models, Trezor Model One and Ledger Nano S Plus, have a two-button system. Once you learn how to operate it, it’s very easy to access your crypto wallet.

In addition to Ledger Nano S Plus, Ledger Nano X also has a two-button system. 

Trezor Model T, on the other hand, is free of buttons and has a touchscreen. It’s much easier to use as compared to the two-button version.

So the Trezor Model T has the upper hand when it comes to ease of use.

Price

Price plays a key role when you want to decide which brand to buy.

The Ledger Nano S Plus costs around $79, while Trezor Model One costs around $69. The difference between the two is minor.

The upgraded models are certainly more expensive. While the Ledger Nano X costs around $149, the Trezor Model T costs approximately $219. The difference in price between the pair is greater than with the basic models. However, the Trezor Model T doesn’t have any major advantages over the Ledger Nano X to justify this difference. 

Moreover, the Ledger Nano X offers Bluetooth connectivity, and the Trezor Model T doesn’t. So the $70 difference in price isn’t reasonable.

In terms of price, Ledger has the obvious edge over Trezor.

Size

When it comes to the size of a hardware wallet, it depends on personal choice. Both the Ledger and Trezor are relatively small and easy to carry around. 

However, if you prefer a smaller, flash drive–style hardware, then Ledger is the choice for you.

If you want something that’s about the same size as car keys, then Trezor is the solution for you.

The sizes of the two are as follows:

• Trezor
• Trezor Model One: 60mm × 30mm × 6mm
• Trezor Model T: 64mm × 39mm × 10mm
• Ledger
• Ledger Nano S Plus: 62.39mm × 17.40mm × 8.24mm
• Ledger Nano X: 72mm × 18.6mm × 11.75mm
• Ledger Stax: 85mm × 54mm × 6mm

Durability

The Ledger Nano X has a stainless steel cover, which makes it very durable.

Both Trezor wallets have a plastic cover, which makes them less durable than Ledger. Of course, you can purchase silicone cases to protect your Trezor hardware, but that still doesn’t make Trezor as durable as Ledger. 

So Ledger takes the crown as the more durable hardware wallet.

Display

A good display is important when it comes to reading crypto addresses, since every detail of a transaction should be carefully checked. 

When it comes to screen display, Trezor has a larger screen than Ledger. Many users consider this a huge benefit, because the information is more organized and easily comprehensible.

Moreover, the Trezor Model T comes with a colorful touchscreen that makes the display superior and much easier to use as opposed to the upcoming Ledger Stax’s E Ink touchscreen.

So when it comes to their displays, Trezor has the edge.

The Bottom Line

To conclude, both Trezor and Ledger are useful and safe options if you want to store cryptocurrencies. Whether one is better than the other depends on your personal preferences.

If you want a greater number of supported cryptocurrencies, cheaper hardware, smaller size and more durability, then Ledger might be the better choice for you.

If you want a better display, slightly more security, bigger size and easier-to-use hardware, then Trezor may be the better choice for you.

Interested in buying Ledger or Trezor? Ensure that you only do so through their official websites. If you don’t buy from secure websites, you run the risk of purchasing fake and malicious hardware wallets. 

Buy from:

Ledger website: https://www.ledger.com/ 

Trezor website: https://trezor.io/ 

Looking to purchase cryptocurrencies and store them in your newly-bought hardware wallets? Sign up on Bybit and kick-start your trading journey here! 

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