When choosing hardware wallets, many crypto users base their decisions on day-to-day asset management needs and perceived device security. However, savvy crypto users first consider a wallet’s ability to handle long-term security scenarios. Long-term security includes expected essentials like backup and recovery tools, and also often-overlooked features related to secure and fault-proof third-party recovery. You can think of third-party recovery as your ability to allow crypto assets to be inherited by successors. Successful crypto users require a comprehensive security strategy for the full life cycle of crypto assets. This article will help you achieve that.
Let’s jump into helping you understand the pros and cons of the Ledger Nano X and Trezor Model T for day-to-day activities, as well as their potential to safeguard the long-term security and longevity of your assets.
Overview
The Ledger Nano X and Trezor Model T both provide a wide variety of reliable security features and support a broad spectrum of cryptocurrencies, making them suitable for diverse crypto portfolios. However, several differences are clear:
Ledger Nano X
- Mobile-Centric Usability: Offers Bluetooth connectivity — works with or without a cable, at least with smartphones.
- General Usability: Wider interoperability with wallets, coins, and apps.
- Design: Compact. User input is via buttons, not touchscreen.
- Price Point: About the same.
Trezor Model T
- Mobile-Centric Usability: No Bluetooth connectivity. iOS app is view-only.
- General Usability: Smaller set of wallets, coins, and apps.
- Design: The touchscreen and input are very well-thought-out experiences.
- Price Point: About the same.
In terms of crypto asset longevity features, such as backup, recovery, and crypto inheritance, both devices provide industry-standard and proprietary options with certain trade-offs, as well as compatibility with third-party solutions like Vault12 Guard for succession planning scenarios.
The decision between the two will likely hinge on individual preferences for the target platform (mobile or desktop), and should take into account the planned frequency of use.
Approach to comparison
When choosing the best hardware wallet for cryptocurrency security, you may wonder:
- Which is better, the Ledger Nano X or the Trezor Model T?
- How easy to use are these wallets?
- How do their security features compare?
- Do these wallets have vulnerabilities, and have they been hacked?
- What happens if your wallet is lost or stolen?
- How do these wallets accomodate user errors, and complex scenarios like inheritance of crypto assets?
This article compares important characteristics for these two popular wallets. We’ll break down the strengths and weaknesses of each, focusing on security, ease of use, and backup and recovery methods.
By the end of this comparison, you’ll clearly understand which wallet is right for you, as well as how to recover your crypto assets in case of accidents.
What happens if your wallet is lost or stolen?
Wise wallet owners recognize the critical importance of crypto recovery before they find themselves in an unexpected bind! That’s why it’s important to understand the fundamental topic of crypto asset longevity, including features such as backup, recovery, and inheritance for crypto assets. These considerations are central to long-term planning.
Technical security is paramount, but in the world of crypto, the degree to which backup and recovery solutions are foolproof for users is at least equally important. Here are the backup and recovery options for these two wallets:
How do these wallets handle Crypto Inheritance?
Crypto Inheritance Features
Currently, most hardware wallets, including the Ledger Nano X and Trezor Model T, lack any features for establishing and managing crypto inheritance. This gap presents a challenge for users who want to be sure that their crypto assets can be transferred to their heirs.
Backup and recovery differentiators
Ledger Nano X Recover service Disadvantages:
- The optional Ledger Recover backup service is a paid service provided by
three corporations that each hold parts of the user’s seed phrase in a
Cloud. This introduces risks, as the seed phrase could potentially be accessed via subpoena;
or business partners could terminate agreements or become involved in
lawsuits that result in locked data or resources (like, for example, Gemini and Genesis). These scenarios contain multiple potential points of failure, and should be taken into account. - Very important detail: The terms of the optional Ledger Recover service do not mention
support for inheritance, meaning any unfortunate accident related to the user will
make crypto assets unrecoverable for his or her successors. Ledger
itself suggests using 3rd-party crypto inheritance services for those
purposes.
Ledger Nano X Recover service Advantages:
- People have different preferences. If a user is comfortable trusting a
bank with their assets, they may also feel confident using Ledger
Recover for securing their seed phrase backup (even though Ledger is not
providing the entire cloud backup solution).
Trezor Model T backup Disadvantages:
- Trezor has a Multishare backup service, but it is fully manual, and challenging to maintain. The user is responsible for generating, distributing, and keeping track of the encrypted shards.
Trezor Model T backup Advantages:
- Trezor does offer a Multishare backup option for those who are able and willing to set it up.
How easy are these crypto wallets to use?
Let’s compare the key aspects of both wallets side by side, and then summarize what really stands out for user convenience:
Crypto wallet user experience (UX) differences
Ledger Nano X with Smartphone UX
Ledger Nano X Disadvantages:
- The display is literally the size of a coin: very uncomfortable to use.
- Requires two-handed operation, making it difficult to use with a phone simultaneously — contrary to some misleading ads.
- The buttons are stiff, making operations cumbersome.
Ledger Nano X Advantages:
- Offers Bluetooth connectivity — works with or without a cable, at least with smartphones.
- Wide support for third-party wallets and dapps, allowing the Ledger Nano X to sign transactions directly in MetaMask, Uniswap, and other platforms without relying on Ledger Live software. This is a huge advantage for DeFi users.
Trezor Model T Disadvantages:
- No wireless connectivity: you always have to use a cable.
- iOS is a balance view-only app, so you can’t send transactions from iOS.
Trezor Model T Advantages:
- The display is much more convenient to work with on a regular basis, and easy to read.
- The touchscreen and input are very well-thought-out experiences on Trezor Model T — you can use it without any discomfort.
How do these wallets’ security features compare?
Now, we dive deeper into the core specification of every hardware wallet: security features.
| Ledger Nano X | Trezor Model T | |
| PIN-code | 4 – 8 digits | up to 50 digits |
| BIP39 Passphrase | Yes | Yes |
| Open-source | Partial | Full |
| Secure Element | Yes | No |
| Multisignature | Yes | Yes |
Crypto wallet security feature differentiators
Ledger Nano X security Disadvantages:
- Critical components like the Secure Element and its operating system are
closed-source. This raises concerns, especially after the controversial
introduction of the Ledger Recover backup service, which challenged the
previous assumption that the Secure Element could never transmit the
recovery seed phrase outside the hardware wallet.
Ledger Nano X security Advantages:
- Includes a Secure Element, giving Ledger devices a strong reputation for withstanding physical attacks. This is important for users who prefer not to complicate their security with BIP39 passphrases, prioritizing ease of use.
Trezor Model T security Disadvantages:
- Lacks a Secure Element, making it resistant to physical attacks only if a BIP39 passphrase is used. This is a significant drawback in both convenience and its ability to be fault-proof.
Trezor Model T security Advantages:
- Fully open-source software and hardware. This minimizes third-party risks, and avoids any need to rely on trust.
- Allows for longer PIN codes, which might appeal to particularly cautious users.
Have there been vulnerabilities or hacks of these wallets?
There have been vulnerabilities and hacks associated with both the Ledger Nano X and Trezor Model T.
While relatively secure, most crypto wallets — even hardware wallets — can not provide perfect security, and are routinely subject to malware, supply chain, and firmware vulnerabilities. Here are some recent notable incidents:
Ledger Nano X Vulnerabilities:
- The Connect Kit Attack (2023): The Connect Kit breach was discovered by the security teams of Ledger.
- Ledger User Data Breach (2020): A major data breach exposed the personal information of thousands of customers, leading to phishing attacks.
- Another User Data Breach (2021): Ledger announced on Twitter that it has been targeted by rogue Shopify team members who exported over 200 merchants’ customer databases.
- Ledger Live (2020): Users were exposed to basic double spending attacks, amplified double spending attacks, and DoS attacks without user consent.
- Potential Supply Chain Attack Vulnerability (2020): Kraken Security Labs Identifies Supply Chain Attacks Against Ledger Nano X Wallets.
Trezor Model T Vulnerabilities:
- Ability to Physically Hack Trezor T Wallet (2023): Crypto Security Firm Unciphered Claims Ability to Physically Hack Trezor T Wallet
- Five Reported Vulnerabilities in Two Models of Trezor Hardware Wallets (2019): Ledger’s Attack Lab has found five vulnerabilities in hardware wallets of its direct competitor Trezor.
- Kraken Identifies Critical Flaw in Trezor Hardware Wallets (2020): Kraken Security Labs has devised a way to extract seeds from both cryptocurrency hardware wallets offered from industry leader Trezor, the Trezor One andTrezor Model T.
No software is perfect, and no wallet is ideal. However, some designs have been compromised more than others.
Summary of Ledger Nano X and Trezor Model T Comparison
The Ledger Nano X and Trezor Model T both provide a respectable set of security measures, and support a broad spectrum of cryptocurrencies, making them suitable for diverse crypto portfolios.
The Ledger Nano X is more mobile-friendly, and offers a balance of security and convenience features. It offers a small display and uncomfortable input, but with the advantages of a Secure Element and wireless connectivity options like Bluetooth.
On the other hand, the Trezor Model T, at the same price, boasts a fully open-source framework, larger display with colors, and touchscreen interface for enhanced user interaction, but with reduced security and convenience from not having a Secure Element and working only with USB connections.
The decision between the two will likely hinge on individual preferences for the target platform (mobile or desktop), and should take into account the planned frequency of use.
Whichever you choose, remember to add crypto inheritance to your choice of wallet to ensure the long-term safety of your digital assets.
Vault12 Guard: a decentralized solution for Crypto Inheritance
Vault12 is the pioneer in Crypto Inheritance Management, and delivers an easy-to-use and securemethod for assigning a legacy contact to your crypto wallets. This enables you to pass on your wallet seed phrases and private keys for all types of digital assets to future generations. Vault12 Guard is designed for everyday people, yet strong enough for Crypto OGs.
Vault12 Guard has a uniquely-secure design. Utilizing advanced encryption and decentralized storage, it ensures that crypto assets are not only safe but also transferable under predefined conditions, filling a critical need unmet by most traditional hardware wallets. Vault12 Guard applies a hybrid approach of software fused with the hardware-based Secure Element of phone devices (The Secure Enclave for iOS devices, and Strongbox for Google devices). Vault12 Guard’s decentralized design reduces possible points of failure. Nothing is stored on cloud servers or Vault12 servers, and no assets are stored on local devices, making them less of a target.
From a user perspective, the Vault12 Guard app asks users to appoint one or more people (or mobile devices) as Guardians. The designated Guardians are entrusted to protect the user’s comprehensive collection of wallet seed phrases and private keys, which are safely stored within a decentralized digital Vault. Its simple, user-friendly workflow removes the necessity for regularly revising wallet inventories or modifying instructions for your lawyers — a process that otherwise could lead to privacy breaches.
Both the Ledger Nano X and Trezor Model T are compatible with Vault12 Guard Inheritance. This addresses the seed phrase backup dilemma for any hardware wallet. It also makes less-secure backup methods, such as paper or steel plates, unnecessary.