14

If you update the firmware you are probably safe, but why take the chance? The Trezor itself (or even the included USB cable https://www.wired.com/2014/07/usb-security/) could have been corrupted/replaced by a sophisticated actor. If someone gave me a used Trezor for free, I would throw it in the garbage. No discount would be sufficient enough for me to ...


9

The primary concern with Bitcoin security is where your private keys are stored. In your scenario the private keys are stored on a Linux laptop which is not unreasonable if you follow good internet hygiene and security practices. The next best approach is to purchase a hardware wallet from the likes of Trezor or Ledger. These wallets have High Security ...


9

Hardware wallets are generally designed to securely store your private keys in an always-offline environment ("cold storage"). This allows the user to have confidence that their coins will not be stolen by malware/hacking/etc, since any attacker would need to have physical access to the device itself. If nothing else, this is the main advantage of ...


8

GPG Keys "TREZOR can now securely generate GPG keys for signing of emails or documents (using the NIST256P1 and Ed25519 curves). Currently, this update does not allow for GPG decryption, a feature planned for next firmware update. For more information check out the great TREZOR Agent by Roman Zeyde." https://medium.com/@satoshilabs/trezor-firmware-1-3-6-...


8

If your machine connects to the internet at all, it should be considered potentially compromised. Consider what happens to it if you visit GMail, which happens to deliver an ad with compromised JavaScript, for instance. Secure storage of a bitcoin wallet can only be really considered "mostly secure" if the machine is never connected to any network, and ...


7

This data on Ledger production costs seems relevant: https://forum.daohub.org/t/ledger-proposal-for-the-dao-1-ethereum-hardware-wallet/1750 Significant price savings exist with orders as small as 6,000 units Q: "Why 6,000 units?" A: "This is our estimate of the best compromise of minimum order needed to get good prices, without having too much stock on ...


6

Trezor implements BIP32/BIP39 (hierarchical deterministic wallet and mnemonic encoded seeds, respectively). The mnemonic (12 words) is just a way of encoding a hex seed like 6c5f9d00018f2a2030afcc6f3057e5a4dea6dfb905dd4b0197a9a047bcfe0501662332a3caa846b1223ff3d20cfb295e7f94fe51c94472e3f8429c97754132e9 (whose mnemonic would be business weird season glimpse ...


6

If I remember correctly, the Trezor uses deterministic wallets, as specified in BIP 0032. That means that the device will give you a sentence that the wallet can be regenerated from, in case it's lost.


6

True. There is a standard algorithm for generating the keys from the seed words (BIP 39 / BIP 32). Most hardware wallets follow this algorithm (check before you buy). So even if the hardware device has failed or cannot be used, you can still use your written seed words with any other software or hardware device that implements the standard algorithm to ...


6

A hardware wallet only has responsibility for handling private keys. This includes generating addresses (when receiving), and signing transactions (when sending). It needs some sort of communication with the outside world to do this. There's multiple hardware wallets on the market, and they don't all operate the same way. However, the principles are the same....


6

The Coldcard handles PSBT directly and natively. A PSBT can given to the device by writing it to a microSD card and inserting the card into the device. It will be able to load the PSBT and process it as a transaction. Additionally when communicating with the device over USB, PSBTs can be given directly instead of being packed into another data structure. ...


5

(trezor-agent developer here...) Please take a look at the latest trezor-agent version here. I'd be happy to fix any issue with the documentation, and extend it with more examples to make it more helpful for first-time users :) EDIT: Make sure to install all the required packages as described here: https://github.com/romanz/trezor-agent/blob/master/INSTALL....


5

Yes, a hardware wallet could be designed for use on the Lighting Network, but no, there's no such thing as eliminating risk of theft. There is always risk of theft, no matter what you do. A hardware wallet could be made to sign the transactions needed to construct the smart contracts for lightning channels, and could even be made to communicate with them. ...


5

That is correct, a hardware wallet does not have access to any information from the blockchain except that provided by the host computer. So it does not know anything about the amounts unless the host provides it to them. Because of this, hardware wallets have some extra requirements for signing. Many devices, for non-segwit inputs, require the entire ...


4

BIP 32/39 allows key portability across different wallet implementations. To complement the "Wizard of Ozzie" answer above, a different method (C++ based, not JavaScript based code) is provided below to reconstruct the results above using the bitcoin-explorer (bx) command line interface that should be executed offline with "real" ...


4

The researcher Jochen Hoenicke has done some work on the Trezor. He was able to extract the private key by monitoring the power cable with an oscilloscope. Trezor has since updated the firmware to defeat the described attack.


4

Found this just after asking the question. https://blog.ledger.co/how-to-protect-hardware-wallets-against-tampering-cad35cb72c1


4

Nobody else has made much of a mention of physical security, yet. You may also like to consider the possibility of: Fire; do you have another copy of your private keys if your building burns down? Of course, storing additional copies adds additional risk of compromise. Natural disasters; depending on location, you may also need to consider the possibility ...


4

I understand these wallets only work with provider's mobile app, online interface or their computer software, correct ? No. Some of the most popular hardware wallets are supported by third party software. For example, Trezors and Ledgers can be used with Electrum who have implemented support for these devices directly. Other wallet software like Wasabi ...


4

No. The hardware wallet company sometimes runs a node, but you could just as easily use a client like Electrum instead, and use Electrum nodes instead with your hardware wallet. All the node is used for is checking for transactions and publishing transactions. The wallet software will use the xpub from the hardware wallet to check for payments people have ...


3

See here the latest list of 27 hardware wallets, many use open source software in the meantime - flagged with a (O). The other ones are flagged with a (N). For security reasons it is of course not sufficient to consider the software alone, also hardware can contain backdoors. (O) Archos Safe-T (Mini) (O) BC Vault (O) Bitbox (O) Bitfi (O) BitLox Hardware ...


3

Personal, I would use multiple wallets just in case some exploit is found in the future. For the more paranoid/safety conscious person, I would also place the hardware wallet in a mini faraday cage, until needed. The reason behind the faraday cage is that electromagnetic radiation of WIRED or even hardwired devices can be picked up from up to 65 feet away; ...


3

As explained in their FAQ, Trezor works together with existing wallet software, it's not a standalone wallet. What happens is that the wallet you use gets the addresses from your wallet from Trezor and can display your balance with that information. When you want to spend money, it will create a transaction as it would normally do, but instead of signing ...


3

The benefit of hardware deterministic wallets is that your keys are permanently kept offline and secret, as long as you don't leak your seed words. To spend bitcoin, the transaction signing is performed on the device, keeping your keys safe. If you encrypt the keys yourself (I'm assuming you're talking about bitcoin private keys, not an HD wallet seed), it ...


3

For Trezor specifically, just check their website for details. Essentially, you need to have: a new or wiped Trezor wallet. your Trezor recovery card, filled out correctly. a computer with the Trezor bridge software installed. You plug the new Trezor into the computer, open the Bridge software, and and follow the "Trezor Recovery" instructions. It will ...


3

If you do this correctly, it would mirror your wallet, yes. BUT! Doing so is probably not a good idea, because you'll have to type your seed phrase into a desktop computer that may be compromised. The point of a hardware wallet is keeping your keys locked away in a device which never touches the internet, testing your backup seed phrase on an internet-...


3

Create a seed outside a hardware wallet and then importing it in this latter doesn't make any sense. Hardware wallets have a strong security because the seed is generated by themselves and never revealed outside. I would recommend to wait for your hardware wallet and then generate and transfer your coins on it. If you know the risk and still want to ...


3

From BIP39:"A user may decide to protect their mnemonic with a passphrase. If a passphrase is not present, an empty string "" is used instead." The passphrase can be added in the transformation from the mnemonic phrase to the seed. It is not added IN the mnemonic but in an other point of the procedure. A consequence of this is that: "The described method ...


3

Ledger uses a secure element chip to store the private key. In simplified terms this means that the private key is stored on a special chip that is almost like a small computer with a Operating System with a very strict and well defined interface. This interface is designed to NEVER allow an extraction of the private key except during the creation of the ...


3

If LBC is somehow able to guess anyone's private key, regardless of how the private key is normally stored and generated, then yes, they can just spend the coins. All you need is the private key, it does not matter how the key was obtained. Of course this is impossible to do in practice with today's technology. The range of possible private keys is ...


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