One important thing to ask yourself before buying a TREZOR hardware wallet is whether or not it is going to be a safe choice. You hear all these horror stories about people losing their cryptocurrency funds or having them stolen and the last thing that you want to happen is for you to become one of those people.
So is TREZOR safe? It’s an important question that needs to be answered and this is exactly what I’m going to be discussing here in this post. I will be going over how TREZOR works and what it actually does to increase the safety of your cryptocurrency holdings, concerns if you lose your TREZOR or if it’s stolen, and concerns with the company behind TREZOR, such as if they were to try to steal people’s funds or go out of business.
How TREZOR Works
The first thing that you need to know, if you don’t already, is how TREZOR works and what it actually does.
In a nutshell TREZOR is a cryptocurrency hardware wallet that gives you easy and safe access to the blockchain and to your funds. The TREZOR device stores or private keys to the various cryptocurrency wallets that are available on the TREZOR device.
These private keys are basically like a password associated with your wallet. They mean everything when it comes to cryptocurrency. With these private keys, and only with these private keys, can you get access to your account. And this means that anyone who gets their hands on these private keys will also get access to your cryptocurrency funds. So it is of the utmost importance to keep these safe, which is what TREZOR does.
With a hardware wallet like TREZOR the private keys never leave the device. When you plug your TREZOR wallet into your computer it signs the private key(s) inside the device and then basically sends the confirmation outside of the device so that you can get access to your funds. Throughout the whole process your private keys stay safe in the TREZOR.
How does this make things more safe?
Because your private keys never leave the device, they cannot be stolen. So even if you were to plug your TREZOR device into a computer that is infected by virus you will not be harmed.
This is a much safer than using a client based wallet online where you would have to type in your private key. In cases like this if you had keystroke malware on your computer your private key that you enter could be detected and then used by the hacker to steal your funds.
What If Your TREZOR Is Lost or Stolen?
As you already probably know when you store bitcoin, Ethereum, etc. in a wallet like TREZOR, you aren’t actually storing the cryptocurrency in the wallet. The cryptocurrency stays on the blockchain and basically all the wallet does is give you safe access to the blockchain into your cryptocurrency.
So if you’re TREZOR is lost or stolen the cryptocurrency does not vanish. It was never stored on there in the first place and all you need to do to get access to it is have your private keys. But of course you do not know your private keys because TREZOR never reveals them and they never leave the device.
Luckily, TREZOR has already implemented safeguards so that you do not have to worry if your hardware wallet gets lost or stolen… It’s not the end of the world.
If someone steals your TREZOR, meaning the actual physical device, they will not be able to get access to your cryptocurrency. When you first get your TREZOR device and are setting it up you will get a pin number that needs to be entered to access the device. This pin number will be randomly generated when you go through the setup process.
So the only way for a thief to get access to your funds from physically stealing the device would be to know the pin number, which is six digits long and much safer than many other device standards you see on the market.
“But if my TREZOR is stolen how can I get my cryptocurrency funds back?”
The process of recovering your funds is a simple. Whether your device is stolen or lost if process will be the same.
When you are initially setting up the device you will also be given what they call a “recovery seed”. This recovery seed is a list of words that you can use to recover your funds. It consists of 24 words and you should write down a couple copies of these words and store them somewhere safe where no one can find them.
So if you lose your TREZOR or it is stolen you will be able to use these 24 words to gain complete access to all of your wallets and funds that were stored on your TREZOR. And what is nice is that you have multiple ways that you can do this. You could buy a new TREZOR and restore your wallets on it, or you could buy other hardware wallets such as KeepKey or Ledger Nano and recover the wallets on them, or you could even use the currency wallets that aren’t hardware wallets, such as Jaxx and many others. The reason that you can use various wallets to recover your funds is it because TREZOR uses BIP39 and BIP44 for encryption which is pretty standard and commonly used for recovery. You are able to recover your funds on any wallet that uses this encryption.
Recovery phrases or recovery seeds can be confusing and if you want to learn more about how all of this works you can read a separate post that I wrote that is solely about them here.
Concerns About The Company Behind TREZOR
Another major concern that I had when I first discovered TREZOR and that I know many others have is the fear that the company him, SatoshiLabs, which makes TREZOR will try to steal your currency or go out of business. But yet again this is nothing that you need to worry about and I’ll explain why.
It would be very worrisome if there was no way to see what was going on inside of the TREZOR device. However, TREZOR is open source which means that anyone can take a look at the code that it runs on. TREZOR has been around for a while now and has been validated as safe by many developers and experts on this kind of thing. They do not use any malicious code with intent to steal your funds or anything like that.
And on a side note, one thing that I really like about TREZOR is that they are very upfront with the security of the device. The team behind it keeps it up to date and patches any possibly exploitable vulnerabilities that it has. When they do this they provide an explanation as to why they are providing an update to TREZOR devices and they tell it how it is. It is important to have a good team behind a device like this because hackers are constantly evolving so TREZOR has to evolve along with them to keep things safe.
What if the company goes out of business?
So what happens if SatoshiLabs goes under? Our people who store cryptocurrency on TREZOR screwed? The answer is no.
If this were to happen, which hopefully it will not, you will easily be able to recover your funds using the recovery seed in a different wallet as I explained above.
I don’t think that TREZOR will go bust anytime in the near future anyhow, but if it does you don’t have to panic.
Conclusion… How Safe Is TREZOR Really?
Storing your cryptocurrency with a hardware wallet is one of the safest way of storage that exists, and a hardware wallet like TREZOR that has been around for a while and is trusted is all the more reason that TREZOR is indeed safe.
Sure… there is always going to be risk involved when it comes to cryptocurrency storage and even with TREZOR you will hear stories about people losing their funds, but this happens from user stupidity and not errors on TREZORS side. This kind of thing can happen when you don’t store your PIN code or recovery seed safe enough. TREZOR provides the means for safetly but they can’t help it if you write your recovery phrase on a piece of paper and leave it on your desk for everyone to see.
So Yes TREZOR is safe. Very safe. Do I own a TREZOR myself? You better believe it.
A Word of Caution When Buying a TREZOR
When buying a TREZOR be sure that you are purchasing one that is real and has not been tampered with. I wrote in entire post on TREZOR scams that exist where people will sell fake TREZOR’s or cell TREZOR’s that have already been set up so that they can steal people’s cryptocurrencies.
Just make sure that you purchase from a legitimate source. You can either purchase from the official TREZOR website, which is TREZOR.io, or you can purchase from the TREZOR store on amazon.com, where you can sometimes buy it for cheaper and get it faster.
Anyway… I hope you enjoyed this post and I hope I cleared a few things up for you to ease your mind. If you have any questions of comments you can leave them below and I’ll get back to you soon 🙂