Hardware Wallets NZ – New Zealand's Cryptocurrency

A hardware wallet is a type of crypto wallet that stores your private keys in a secure physical device, such as the multi-coin hardware wallets offered by Trezor and Ledger. Whenever you make an outbound transaction from a hardware wallet, you're required to physically approve the transaction from your device, via a connection to your PC or mobile.

Your private keys never leave your wallet so they're virtually impossible to be penetrated or infected; hence why hardware wallets are known as the apex of crypto wallet security.

A hardware wallet simply put, is a very basic computer that's been stripped down to the bare necessities. The only capabilities of them are to store your private keys offline and sign transactions offline, making them virtually immune to online hacking attempts.

Pros

• Highest Security – Hardware wallets offer the highest level of security for crypto storage.
• Multi-coin Support – Storing all of your assets in one place easily enables users to keep track of and trade or spend your cryptocurrencies.
• Pin Protected – Most hardware wallets enable extra security through a pin or password so your funds cannot be randomly accessed if the hardware is stolen.

Cons

• Price – Hardware wallets can be rather expensive. ($150 – $300+ NZD)
• Replicas – Due to the high price, people naturally attempt to find a cheaper place to purchase, sometimes this results in these people being scammed with 'fake' hardware wallets.
• Limited Accessibility – In order to make a transaction from your hardware wallet you must connect it to your PC or smartphone. Although this increases security, it decreases accessibility (this is easily solved by using both cold storage and hot wallet simultaneously).

In the realm of NZ crypto wallet security, hardware wallets such as Trezor and Ledger are hailed as the apex of safeguarding digital assets. Their fundamental strength lies in their offline operation, ensuring that private keys, (the critical access points to funds), remain untouched by potential online threats. This is why they are called 'cold storage' wallets.

Traditional software (online) wallets often fall prey to malware and phishing attacks, compromising the security of private keys. In contrast, hardware wallets are inherently immune to such threats. These devices execute transactions within the confines of a secure physical environment, keeping private keys isolated from malicious actors.

Tamper-evident packaging is another feature of hardware wallets, ensuring the integrity of the device by alerting users if it has been tampered with or opened. Additionally, these wallets generate a recovery seed phrase during setup, serving as a crucial backup. This seed enables users to restore their funds on a new device in case the original is lost or damaged, emphasizing the importance of secure offline storage for this backup.

Despite their advanced security features, hardware wallets are designed to be user-friendly. Equipped with intuitive interfaces, hardware wallets cater to both beginners and experienced users. Reputable manufacturers also commit to regular firmware updates, addressing potential vulnerabilities and reinforcing security measures.

In summary, the robust security mechanisms, offline operation, and user-friendly design position hardware wallets as the preferred choice for individuals seeking the highest level of security for their cryptocurrency holdings – essential for holding crypto long term.

Private keys in the context of cryptocurrency prove ownership of assets associated with a particular wallet address and allow you to access and spend the assets in that address.

An easy way to understand this is if you think of your wallet as your online banking account, your private key is the login information for your account, allowing you to sign in and spend the funds or do as you wish with them.

Just the same as you want to keep your online banking information safe, you must keep your private keys safe. Otherwise anyone can log-in and access your account or wallet.

Each public receiving address (where you receive funds to) has its own corresponding private key, and unlike the public address, the private key enables anyone who knows it to access the address and therefore access the funds inside it.

When you first create a wallet, all of your private keys are automatically created using your 12-word seed phrase. When the 12-Word seed is run through a standardised formula, it is turned into a number called a seed integer, this can be thought of as your 'master private key'. An almost endless number of public and private keys can be created when your "master" private key is run through a standardised algorithm.

It is always recommended to buy your hardware wallet directly from the manufacturer, rather than from places such as TradeMe due to the threat of tampered-with wallets.

However, there are a number of trusted vendors within NZ that stock brand-new, authentic cryptocurrency hardware wallets, such as the Trezor model T or Ledger Nano X.

Buying from the Trezor or Ledger website is theoretically the safest option, but buying from within NZ means you get your wallet delivered to you faster. This decision is on you.

• Trezor official website – https://trezor.io
• Ledger official website – https://shop.ledger.com/
• EasyCrypto Shop – https://shop-nz.easycrypto.ai/
• Crypto Store NZ – https://www.cryptostore.net.nz/
• Coined NZ – https://coined.nz/ledger/

At Cryptocurrency NZ, we strongly endorse Trezor and Ledger as the two most reputable hardware wallet providers. Both companies excel in security, offering excellent options.

While most hardware wallets serve the same purpose, there are notable differences between Trezor and Ledger products. Our personal preference leans towards the Trezor Model T, but both brands are industry leaders with outstanding options to explore.

Below, we highlight key features and differences between the latest and most advanced wallets from both companies – the Trezor Model T and the Ledger Nano X.

• Ease of use:Trezor T devices are extremely easy to use and set up. They are rated slightly higher in ease of use than the Ledger equivalent due to their large colour touchscreen (240×240 pixels).
• Application:Trezor offers two applications that can be used in conjunction with the hardware wallet, Trezor Wallet and Trezor Suite. These applications are multifunctional platforms designed to increase the ease of configuring and managing Trezor devices. Currently the apps are only available to download on PC, however Trezor have plans to introduce a mobile app.
• Price:The Trezor model T is priced at $270 NZD (at the time of writing).
• Supported Coins:Trezor hardware wallets support over 1800 different cryptocurrencies, although this number is likely to increase.
• Connectivity:Trezor devices are connected to your computer or phone via a USB-C cable (currently Trezor devices can only connect to android phones, though it is likely this will become available in the future for iphones as well). Trezor has opted out of offering a bluetooth connectivity function to reduce the wallet's exposure.
• Open Source:Since day one everything about Trezor hardware wallets has been completely open source, meaning anyone can view and audit their hardware or software; this consequently strengthens the security of their product as everything gets tested by a great number of experts.
• Features:Wallets enable you to send, store, receive, and trade your cryptocurrencies as well as control the transaction fees according to your personal needs.

• Ease of use:The Ledger nano X is also relatively easy to use and set up. Although the screen is slightly larger than their previous model, with 128×64 pixels it still falls short in comparison to that of the Trezor.
• Application:Ledger also offers applications (for both mobile and PC) to assist in managing your crypto assets, additionally each cryptocurrency has its own 'app' that can be downloaded onto the hardware wallet; this can be rather tedious in comparison to Trezor devices which come preloaded with the equivalent capabilities.
• Price:The Ledger Nano X is priced at $230 NZD (at the time of writing).
• Supported Coins:The Ledger Nano X currently supports over 1800 different tokens and the device can be downloaded with up to 100 'apps' at the same time. The number of supported tokens is likely to increase as new tokens gain traction.
• Connectivity:The Ledger Nano X can be connected both via usb cable as well as bluetooth, the bluetooth function enables connectivity with both android and Apple.
• Open Source:Ledger hardware wallets run on their own closed source operating system (OS). Meaning their OS cannot be audited by third parties.
• Features:Ledger hardware wallets enable users to send, store, receive, and as of recently sell cryptocurrencies directly through the wallet as well as determine the network fee you pay based on your preferences.