Ledger vs Trezor

Ledger and Trezor are the two most established hardware wallet manufacturers in Bitcoin. Both are credible, both are widely used, and both do the core job — keeping your private key offline — reliably.

The differences are worth understanding before choosing.

Ledger uses a secure element chip — the same type used in passports and payment cards. This provides strong physical tamper resistance. The tradeoff is that the firmware is partially closed-source, which means the security community cannot audit every component of it. In 2020, Ledger suffered a significant data breach that exposed customer names, email addresses, and physical addresses — not funds, but personal data. The response from Ledger was criticised by the security community.

Trezor uses fully open-source firmware, which means every line of code can be audited by anyone. The security community considers this a significant advantage. The tradeoff is that Trezor’s hardware doesn’t use a secure element, making it theoretically more vulnerable to physical attacks — though this requires physical possession of the device and significant technical expertise.

For most users the practical difference is small. Both devices protect against the most common threat — remote attacks — equally well.

A few other options have emerged in recent years. Coldcard is favoured by more technically advanced Bitcoin holders for its open-source design and Bitcoin-only focus. Foundation Passport is another Bitcoin-only option with strong privacy credentials.

The right choice depends on comfort level, budget, and how much Bitcoin is being protected. Any of the established options is dramatically better than leaving funds on an exchange.

Tomorrow: how to set up a hardware wallet — what the process actually looks like.

— The Daily Bit