With what seems like a new bull run for crypto, now might be time to buy a hardware wallet. Starting this month, Ledger is selling the Nano X, a bluetooth-enabled, slightly larger update on the Nano S. Is it worth buying? I took the Nano X for a test run, comparing it to the S and the Trezor ONE wallet.
Who Needs A Hardware Wallet?
Hardware wallets are the safest way to store your crypto, but they are not free. As a general rule, if you hold twice the cost of a hardware wallet in crypto, you should get one. If you decide to get a hardware wallet, always buy directly from the manufacturer’s website to avoid a potentially compromised version.
Comparing The Nano X
The table below gives the basic information for each bit of functionality, with a little more detail in the subsections following it. Be sure to read the expanded section on security after this, where both Satoshi Labs (creators of Trezor ONE and Trezor Model T) and Ledger weigh in.
| Nano X | Nano S | Trezor ONE | |
| Onboarding | Connecting through bluetooth made onboarding and installing apps supporting different cryptos much easier than on a corded connection. | Setup will still be difficult, but secure and straightforward. Sometimes you may need to unplug the USB-port and replug it for steps to register on the hardware wallet. | Setting up the Trezor wallet is very similar to setting up the Nano S, though slightly easier to use. You set up on Trezor’s wallet website through Chrome and the device itself. |
| How many different assets can I hold at once? | 100. | 5-6. The Ethereum App takes up a lot of room, but Ledger plans to release a smaller update next week. | Unlimited. |
| Mobility | Bluetooth support through Ledger Live makes spending on the go much safer. Ledger Live supports your phone’s biometric security, making it easy to manage transactions on the go. Connect a smaller wallet to the X and keep larger amounts of funds in separate cold storage. | The “S” travels well, even though it isn’t built for mobile transactions. Slightly smaller than the “X”, the “S” is similarly reinforced with a brushed stainless steel sleeve. The S requires you having a computer, and having it out to make a transaction, not handy on the go. |
The Trezor is plastic on the outside with a digital reader, making it something you want to pack carefully. It’s fine for travel in a safe place. Like the S, the Trezor requires a computer and the device out. This inconvenience makes it more secure, but not a good hot wallet. |
| Security | Ledger says they have a safer chip than other hardware wallets. This is meant to be more usable as a secure hot wallet, not safely disconnected long-term storage. | To confirm your seed phrase, you select from 24 choices and confirm for each word in order on the device. | Satoshi Labs offers completely auditable open-source code, allowing the community to fully vet their products. Mixed order entering of seed words across device and computer adds extra security against a potentially compromised computer. |
| Price | $119 | $59 Trezor and KeepKey are both $99, making the “S” quite competitive. Many people prefer the Trezor onboarding experience and greater coin support as compared to the S.) | $99 (or $159 for the color touch-screen Model T). |
| Bottom Line | Nano X is the only hardware wallet for someone who wants to spend crypto on the go in their daily life.The “X” is about mobility, so for safety, it’s best to keep large amounts of crypto on a separate hardware wallet. It could be worth the extra cost if even as cold storage only if you hold more than six coins or want a slightly easier onboarding experience. | Nano S is the best budget choice. You get all the hardware benefits of the X for half its price. Think of “S” for storage, safely tucked away crypto. | Trezor is best for someone looking for more coin support than the S who wants cold storage. At about $40 more, you might prefer it for a little easier onboarding than the S, too. |
Onboarding
The Trezor blog says it takes about 5 ½ minutes to get through its onboarding process. You have a pretty straightforward process of setting up a wallet, coming back to create your PIN and seed recovery after. It’s worth noting Ledger’s process is slightly longer and felt a little less intuitive the first go, you also have to complete your PIN and recovery seed before creating addresses without an option to come back. Overall, onboarding is comparable between the Nano X and the Trezor One because adding the bluetooth functionality helped speed up onboarding on the X to a comparable speed, with onboarding on the S being slightly more cumbersome.
Security
I spoke with both Ledger and SatoshiLabs, asking what they believe to be the key security difference between their products. Marek Palatinus, CEO of SatoshiLabs says open-source and an advanced passphrase entry method are key to Trezor’s security.
Palantinus told me,
“Trezor One is built on the open-source code that is fully transparent and auditable. We believe that [an] open-source project is better suited to the security needs of the crypto community, as the majority of that community follows the “Don’t trust–verify” principle.
We do not depend on closed-sourced secure elements, which could compromise the security of the device. For the purposes of advanced physical security we have introduced the passphrase feature.”
Ledger CEO, Eric Larchevêque says it comes down to the chips inside,
“While other hardware wallet companies build their products around a general purpose microcontroller (same technology found in toasters or remote controllers), Ledger uses chips designed to secure critical data (same technology found in payment cards, sim cards or passports). Ledger can therefore rely on battle tested chips and ensure a much higher level of hardware security.
As a results of these efforts, the ANSSII (French National Cybersecurity Agency) granted the CSPN certification to the Nano S (Certification de Sécurité de Premier Niveau/ First Level Security Certificate) after a comprehensive security evaluation. The Nano X is currently going through the same certification process.”
One thing on many people’s minds about the Nano X’s security is whether adding bluetooth functionality creates an increased security risk. Recently Ledger tweeted about this, stating “Bluetooth is just a bearer, like USB. The Nano X operates on the assumption that the BLE connection is compromised. You always have to physically review and confirm a transaction on device.”
Coin Support
Ledger currently supports 1,185 crypto assets, with many (ERC-20 coins) requiring the use of either MyEtherWallet (MEW) or MyCrypto. Trezor supports 1,071 crypto assets and does not require use of MEW or MyCrypto, but is compatible with both.
One noticeable difference you’ll find right away between Ledger and Trezor is whether or not you have to download apps to support different coins. Say you want to hold Cardano and ZCash, for example. Trezor has native support built-in for nearly every cryptocurrency, while Ledger requires you to download an app for each different coin or token. The two companies took very different approaches here, with Trezor working with cryptocurrency developers to integrate support so there’s nothing you have to do as a customer. Ledger, on the other hand, offers an easy direct app download through Ledger Live for about 30 popular cryptocurrencies, but you have to download third party software for the rest. At the same time, Ledger is known to add new crypto assets a little faster than Trezor.
Larchevêque says, “Full integration in the Ledger Live requires another level of development which is much more complex and time consuming. We plan to add more assets natively to the Ledger Live by documenting the process and leveraging the open source community. We’ll also do it internally for major coins. But we don’t have any release date to share at this stage.”
Conclusion
When it comes to the amount of coins you can have at once, Ledger X and Trezor definitely have the advantage over the S. The Ledger X supports 100 simultaneously, and the Trezor is unlimited. While most people who get into crypto start with Bitcoin, many find they want to add other cryptocurrencies throughout their journey. If you know you’re a Bitcoin Maximalist and don’t care about additional coin support, the S could be the perfect option. If you’re an open-source fan, you’ll probably want a Trezor. If you believe in spending crypto on the go, the X is your best option. Hopefully this guide will make it easier to decide.
Disclosure: I received a Ledger Nano X demo model to use in research on this article.
