We’ve been learning a ton about Bitcoin storage from the folks at Trezor – so much so that we have joined their Affiliate Program. So use the link and we’ll potentially be compensated…but it’s such a cool and important product that we’d recommend it regardless. (BTW, at last check, the price on the Trezor website is about twenty bucks cheaper than what popped up on Amazon.)
You Need to Store Your Bitcoins
Guys, guys, guys…Bitcoins disappear. They get stolen. They get confiscated. You could get hacked. THE CLOUD ISN’T SAFE.
We could give you about 250,006 reasons why this is important for you to take a look at, but, really…YOU NEED THIS PRODUCT.
First, the Doom and Gloom
Here are just some of the things that could happen to your coins (as detailed more eloquently by the TREZOR webpage than we could do ourselves):
“When you store your Bitcoins in a traditional web wallet you put your Bitcoins at risk of being stolen, lost, or confiscated. Here is a list of ways people have lost their Bitcoins through use of a traditional web wallet:
- User’s computer is hacked and web wallet password is stolen
- Web wallet server gets hacked and bitcoins are stolen
- Web wallet company goes bankrupt
- FBI or other enforcement agency confiscates coins
- Web wallet provider points to ToS violation and takes coins
- Owners of web wallet company run away with coins
- Bug in web wallet software leads to loss of coins
- Your computer or cell phone is stolen while you are logged in and thieves then steal your coins
If you keep your Bitcoins in a TREZOR, none of these things can happen.”
Honestly, though, all you really have to say is “MT GOX” and you’ve said enough to scare the crap out of just about anyone.
How other methods can mess up
If you keep coins on your computer…well, if your computer is compromised, so can be your Bitcoins.
Mobile phones aren’t much different than web wallets – you’re just using your phone to access the online wallet. And a USB device? Well, that can leave you as vulnerable as anything.
Okay, so you need a TREZOR…but how does it work?
Again, we turn to the experts…the folks at TREZOR…to tell you about their product:
“TREZOR is a single purpose device which allows you to make secure Bitcoin transactions. With TREZOR, transactions are completely safe even when initiated on a compromised or vulnerable computer. Because the use of TREZOR is very easy and intuitive we believe it will help Bitcoin adoption among people not familiar with the security issues.”
Well, imagine the whole system like an elaborate series of signatures and codes to secure transactions – with the important step in the process the signature that finishes the transaction. Your current wallet holds that signature…but with TREZOR, the device holds the keys to that signature. The company says it’s like a “modern-day time stamp.”
Then, they explain further…
“TREZOR is better than an ordinary mechanical stamping mechanism, however. Each TREZOR has a PIN code. If your TREZOR gets stolen, thieves cannot misuse it to steal your money. Due to TREZOR’s clever design, even if the computer with which you use your TREZOR is hacked, the hackers will never know your PIN.
In contrast to the various pieces of software and web services that allow you to store your Bitcoins TREZOR is secure. Software and web-based solutions keep your Bitcoin signing keys either on your computer or worse, on the Internet! When you use such a service, hackers can easily steal your Bitcoins by hacking your computers or hacking the servers of the services that you use.”
More than Just Bitcoin
Trezor supports five coins – here’s what their website says: