The death of safe deposit boxes
Vaults are a historic solution
For thousands of years, wealthy tribes and individuals have stored their treasures in temples, palaces, and fortresses. From ancient Mesopotamia to Egypt to the Knights Templar to today’s public banks, vaults have long been used to safeguard valuable possessions.
In the last couple of centuries, increased availability has led more "regular people" to turn to safe deposit boxes held at banks or private vaults to store heirlooms, cash, and important documents. In this way, vaults — once limited to society's elites — became a popular and practical mechanism for protecting one's most important assets.
We all need vaults in today's digital world
Just in the last couple of decades, people have had to consider what the safest place is to store not just small physical assets, but also digital assets and passwords such as electronic documents and crypto wallet seed phrase backups.
Digital asset owners know how important it is to keep a backup copy of one’s wallet seed phrase. Losing your wallet seed phrase results in losing access to your digital wallet — and thus, losing access to all of the digital assets you hold! The stakes are very high, and there are not many simple and robust solutions to choose from.
Safe deposit boxes for digital wallet private keys?
It has seemed natural for many people to turn to safe deposit boxes to store paper, electronic, or engraved-metal copies of their digital asset wallet seed phrases. In fact, the iconic and well-educated Winklevoss twins Cameron and Tyler used safe deposit boxes as part of their early strategy to distribute and protect pieces of their Bitcoin wallet keys.
"The Winklevosses came up with an elaborate system to store and secure their private keys. They cut up printouts of their private keys into pieces and then distributed them in envelopes to safe deposit boxes around the country, so if one envelope were stolen the thief would not have the entire key.""How the Winklevoss Twins Found Vindication in a Bitcoin Fortune" by Nathaniel Popper, New York Times, December 19, 2017
Safe deposit boxes are no longer the best solution
But given the state of the world today, is it a good idea to rely on a safe deposit box to store your digital wallet seed phrase backup? Unfortunately, the answer is a resounding “No.” Let’s consider why not.
Safe deposit boxes are disappearing
Many banks have phased out the availability of safe deposit boxes. In the United Kingdom, HSBC and Barclays have completely stopped offering safe deposit boxes. In the United States, JPMorgan Chase, Santander, and Capital One have stopped offering new safe deposit boxes, while Bank of America and Citibank have also reduced their availability. Among the reasons for this trend: declining demand, high maintenance costs, and regulatory challenges. The chart below reflects these startling changes.
Fewer and fewer safe deposit boxes are available
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Safe deposit boxes are subject to theft
In 2015, a Citibank safe deposit box in Sherman Oaks, California was mysteriously emptied of over half a million dollars worth of valuables — and surveillance cameras only covered the vault entrance, not individual boxes. In 2017, a Brooklyn Santander bank branch was broken into from an adjacent basement, and crooks made off with the contents of about 50 boxes. And from 2020 to 2023, safe deposit box customers at MUFG Bank in Tokyo had valuables stolen by a bank employee! (In this case, the customers were repaid by the bank.)
Safe deposit boxes are subject to natural disasters
Natural disasters do not spare safe deposit boxes. Hurricanes in the United States (Katrina in 2005 and Harvey in 2017) led to many lost and damaged safe deposit box valuables. Earthquakes have resulted in safe deposit box losses in Japan and New Zealand. Fires destroyed the contents of safe deposit boxes in Australia (2019/2020) and California (during several years including 2025), after the boxes essentially became high-temperature ovens. In cases of extreme physical disaster, sometimes the only possible safety is being in a different location.
Safe deposit boxes can be legally seized
If a safe deposit box custodian is presented with a legal claim to freeze or seize the contents of a safe deposit box (for example, if there is a suspicion of illegal activity), law enforcement will assume custody of the contents as permitted by the relevant jurisdiction. Sometimes, depending on a warrant’s scope, many boxes can be opened even without specific individual warrants.
Safe deposit boxes aren’t insured
Many people assume that safe deposit boxes are insured by default — but they’re not! In the United States, neither the FDIC nor the National Credit Union Administration insures them.Some private insurers will cover them with special policies, but you have to specifically seek them out and pay extra for them — and carefully analyze the fine print about valuation, exclusions, and policy limits.
Safe deposit boxes aren’t always accessible
Banks aren’t always open for business. Beyond expected “business hour” limitations, banks can be unexpectedly closed for various reasons, including pandemic responses. If a bank that holds safe deposit boxes finds itself in a legal dispute or financial failure, although the contents of the safe deposit boxes are not considered bank assets, access to the boxes may be temporarily blocked while administrative proceedings unfold.
Additionally, if a safe deposit box owner passes away, special access rules (varying by region) come into play, and a spouse or the executor of a will may not be permitted to access a safe deposit box — even if they have the key and PIN.
A Digital Vault is safer and more convenient
A better solution is to use a secure Digital Vault like Vault12 Guard. The Vault12 Digital Vault fulfills and exceeds all of the secure digital storage requirements that a physical vault offers … without the limitations or third-party risks. Vault12 Guard takes the form of a simple-to-use mobile app that can protect all of your digital assets in a highly-secure, decentralized manner, monitored by Guardians of your choice.
A Vault12 Digital Vault is secure and always-accessible
The Vault12 Digital Vault is more secure than a safe deposit box, safe from natural disasters due to its decentralized design, always accessible, and its Digital Inheritance feature is simple for your next of kin to use when the time comes.
View the Vault12 Guard demo and download a trial today
Check out an overview with demo to see how the Vault12 Digital Vault works. Learn more on the Vault12 website. When you’re ready, you can get started with your Digital Vault in just a few minutes.
Ledger Stax and Trezor Model T: two strong wallets compared
When choosing hardware wallets, many crypto users base their decisions on day-to-day asset management needs and perceived device security. However, savvy crypto users first consider a wallet's ability to handle long-term security scenarios. Long-term security includes expected essentials like backup and recovery tools, and also often-overlooked features related to secure and fault-proof third-party recovery. You can think of third-party recovery as your ability to allow crypto assets to be inherited by successors. Successful crypto users require a comprehensive security strategy for the full life cycle of crypto assets. This article will help you achieve that.
Let's jump into helping you understand the pros and cons of the Ledger Stax and Trezor Model T for day-to-day activities, as well as their potential to safeguard the long-term security and longevity of your assets.
Overview
The Ledger Stax and Trezor Model T both provide a wide variety of reliable security features and support a broad spectrum of cryptocurrencies, making them suitable for diverse crypto portfolios. However, several differences are clear:
Ledger Stax
- Mobile-Centric Usability: Designed with mobility in mind, the
- Ledger Stax features wireless connectivity options like Bluetooth and
- NFC, making it highly compatible with mobile platforms.
- Premium Design: Its unconventionally large display enhances readability, though it comes with slower responsiveness included.
- Price Point: Positioned as a premium product, its cost reflects its advanced features and sleek design
Trezor Model T
- Mobile-Centric Usability: No Bluetooth connectivity. iOS app is view-only.
- General Usability: Smaller set of wallets, coins, and apps.
- Design: The touchscreen and input are very well-thought-out experiences.
- Price Point: More affordable.
In terms of crypto asset longevity features, such as backup, recovery, and crypto inheritance, both devices provide industry-standard and proprietary options with certain trade-offs, as well as compatibility with third-party solutions like Vault12 Guard for succession planning scenarios.
The decision between the two will likely hinge on individual preferences for the target platform (mobile or desktop), and should take into account the planned frequency of use.
Approach to comparison
When choosing the best hardware wallet for cryptocurrency security, you may wonder:
- Which is better, the Ledger Stax or the Trezor Model T?
- How easy to use are these wallets?
- How do their security features compare?
- Do these wallets have vulnerabilities, and have they been hacked?
- What happens if your wallet is lost or stolen?
- How do these wallets accomodate user errors, and complex scenarios like inheritance of crypto assets?
This article compares important characteristics for these two popular wallets. We’ll break down the strengths and weaknesses of each, focusing on security, ease of use, and backup and recovery methods.
By the end of this comparison, you’ll clearly understand which wallet is right for you, as well as how to recover your crypto assets in case of accidents.
What happens if your wallet is lost or stolen?
Wise wallet owners recognize the critical importance of crypto recovery before they find themselves in an unexpected bind! That's why it's important to understand the fundamental topic of crypto asset longevity, including features such as backup, recovery, and inheritance for crypto assets. These considerations are central to long-term planning.
Technical security is paramount, but in the world of crypto, the degree to which backup and recovery solutions are foolproof for users is at least equally important. Here are the backup and recovery options for these two wallets:
How do these wallets handle Crypto Inheritance?
Crypto Inheritance Features
Currently, most hardware wallets, including the Ledger Stax and Trezor Model T, lack any features for establishing and managing crypto inheritance. This gap presents a challenge for users who want to be sure that their crypto assets can be transferred to their heirs.
Backup and recovery differentiators
Ledger Stax Recovery service Disadvantages:
- The optional Ledger Recover backup service is a paid service provided by three corporations that each hold parts of the user’s seed phrase in a Cloud. This introduces risks, as the seed phrase could potentially be accessed via subpoena; business partners could terminate agreements or become involved in lawsuits that result in locked data or resources (like, for example, Gemini and Genesis); and there are multiple potential points of failure.
- Very important detail: The terms of the optional Ledger Recover service do not mention support for inheritance, meaning any unfortunate accident related to the user will make crypto assets unrecoverable for his or her successors. Ledger itself suggests using 3rd-party crypto inheritance services for those purposes.
Ledger Stax Recovery service Advantages:
- People have different preferences. If a user is comfortable trusting a bank with their assets, they may also feel confident using Ledger Recover for securing their seed phrase backup (even though Ledger is not providing the complete cloud backup solution).
Trezor Model T backup Disadvantages:
- Trezor has a Multishare backup service, but it is fully manual, and challenging to maintain. The user is responsible for generating, distributing, and keeping track of the encrypted shards.
Trezor Model T backup Advantages:
- Trezor does offer a Multishare backup option for those who are able and willing to set it up.
How easy are these crypto wallets to use?
Let's compare the key aspects of both wallets side by side, and then summarize what really stands out for user convenience:
Crypto wallet user experience differences
User holding a mobile phone and using Ledger Stax as FIDO U2F security key
Ledger Stax Disadvantages:
- The display has a noticeable response delay due to the "E Ink" touchscreen technology, and could be irritating.
- Not all apps are ported to Stax yet. Even the native Passwords app still has no release date identified as of this article's publish date, so check in advance whether your favorite network/coin is supported.
- Extremely expensive. The value in Stax is more about design, rather than practical aspects.
Ledger Stax Advantages:
- Huge informative display and "Clear Signing" allows you to review and confirm all transaction details directly on Ledger Stax and in a human-readable language before they are signed and sent. This enhances security and ensures that you see exactly what you are approving in a secure and tamper-proof manner.
- Offers Bluetooth connectivity as well as NFC — works with or without a cable, at least with smartphones.
- Wide support for third-party wallets and dapps, allowing the Ledger Stax to sign transactions directly in MetaMask, Uniswap, and other platforms without relying on Ledger Live software. This is a huge advantage for DeFi users.
Trezor Model T Disadvantages:
- No wireless connectivity: you always have to use a cable.
- iOS is a balance view-only app, so you can't send transactions from iOS.
Trezor Model T Advantages:
- The display is much more convenient to work with on a regular basis, and easy to read.
- The touchscreen and input are very well-thought-out experiences on Trezor Model T — you can use it without any discomfort.
How do these wallets' security features compare?
Now, we dive deeper into the core specification of every hardware wallet: security features.
| Ledger Stax | Trezor Model T | |
| PIN-code | 4 - 8 digits | up to 50 digits |
| BIP39 Passphrase | Yes | Yes |
| Open-source | Partial | Full |
| Secure Element | Yes | No |
| Multisignature | Yes | Yes |
Crypto wallet security feature differentiators
Ledger Stax security Disadvantages:
- Critical components like the Secure Element and its operating system are closed-source. This has raised concerns, especially after the controversial introduction of the Ledger Recover backup service, which challenged the assumption that the Secure Element could never transmit the recovery seed phrase outside the hardware wallet.
Ledger Stax security Advantages:
- Includes a Secure Element, giving Ledger devices a strong reputation for withstanding physical attacks. This is important for users who prefer not to complicate their security with BIP39 passphrases, prioritizing ease of use.
- Clear Signing is also a security feature.
Trezor Model T security Disadvantages:
- Lacks a Secure Element, making it resistant to physical attacks only if a BIP39 passphrase is used. This is a significant drawback in both convenience and its ability to be fault-proof.
Trezor Model T security Advantages:
- Fully open-source software and hardware. This minimizes third-party risks, and avoids any need to rely on trust.
- Allows for longer PIN codes, which might appeal to particularly cautious users.
Have there been vulnerabilities or hacks of these wallets?
There have been vulnerabilities and hacks associated with both the Ledger and Trezor products, however given Stax is very new we will cover it's manufacturer's hacks history.
Far from delivering uncompromised security, these wallets are routinely subject to malware, supply chain, and firmware vulnerabilities. Here are some recent notable incidents:
Ledger Vulnerabilities:
- The Connect Kit Attack (2023): The Connect Kit breach was discovered by the security teams of Ledger.
- Ledger User Data Breach (2020): A major data breach exposed the personal information of thousands of customers, leading to phishing attacks.
- Another User Data Breach (2021): Ledger announced on Twitter that it has been targeted by rogue Shopify team members who exported over 200 merchants’ customer databases.
- Ledger Live (2020): Users were exposed to basic double spending attacks, amplified double spending attacks, and DoS attacks without user consent.
- Potential Supply Chain Attack Vulnerability (2020): Kraken Security Labs Identifies Supply Chain Attacks Against Ledger Wallets.
Trezor Model T Vulnerabilities:
- Ability to Physically Hack Trezor T Wallet (2023): Crypto Security Firm Unciphered Claims Ability to Physically Hack Trezor T Wallet
- Five Reported Vulnerabilities in Two Models of Trezor Hardware Wallets (2019): Ledger’s Attack Lab has found five vulnerabilities in hardware wallets of its direct competitor Trezor.
- Kraken Identifies Critical Flaw in Trezor Hardware Wallets (2020): Kraken Security Labs has devised a way to extract seeds from both cryptocurrency hardware wallets offered from industry leader Trezor, the Trezor One and Trezor Model T.
Summary of Ledger Stax and Trezor Model T Comparison
The Ledger Stax and Trezor Model T both provide a respectable set of security measures, and support a broad spectrum of cryptocurrencies, making them suitable for diverse crypto portfolios.
The Ledger Stax is very mobile-friendly, and offers a balance of security and convenience features at a very premium price. It offers a big, but unconventional display and with delayed input, but with the advantages of a Secure Element and wireless connectivity options like Bluetooth.
On the other hand, the Trezor Model T, at a much lower price, boasts a fully open-source framework, larger display with colors, and touchscreen interface for enhanced user interaction, but with reduced security and convenience from not having a Secure Element and working only with USB connections the offer sounds non-attractive.
The decision between the two will likely hinge on individual preferences for the target platform (mobile or desktop), and should take into account the planned frequency of use.
Whichever you choose, remember to add crypto inheritance to your choice of wallet to ensure the long-term safety of your digital assets.
Vault12 Guard: a decentralized solution for Crypto Inheritance
Vault12 is the pioneer in Crypto Inheritance Management, and delivers an easy-to-use and securemethod for assigning a legacy contact to your crypto wallets. This enables you to pass on your wallet seed phrases and private keys for all types of digital assets to future generations. Vault12 Guard is designed for everyday people, yet strong enough for Crypto OGs.
Vault12 Guard has a uniquely-secure design. Utilizing advanced encryption and decentralized storage, it ensures that crypto assets are not only safe but also transferable under predefined conditions, filling a critical need unmet by most traditional hardware wallets. Vault12 Guard applies a hybrid approach of software fused with the hardware-based Secure Element of phone devices (The Secure Enclave for iOS devices, and Strongbox for Google devices). Vault12 Guard's decentralized design reduces possible points of failure. Nothing is stored on cloud servers or Vault12 servers, and no assets are stored on local devices, making them less of a target.
From a user perspective, the Vault12 Guard app asks users to appoint one or more people (or mobile devices) as Guardians. The designated Guardians are entrusted to protect the user's comprehensive collection of wallet seed phrases and private keys, which are safely stored within a decentralized digital Vault. Its simple, user-friendly workflow removes the necessity for regularly revising wallet inventories or modifying instructions for your lawyers — a process that otherwise could lead to privacy breaches.
Both the Ledger Stax and Trezor Model T are compatible with Vault12 Guard Inheritance. This addresses the seed phrase backup dilemma for any hardware wallet. It also makes less-secure backup methods, such as paper or steel plates, unnecessary.
Get Started Now.
Pay-by-Crypto Subscriptions (50% off) and Vault12 Guard Operational Enhancements
The latest release of Vault12 Guard has some powerful new capabilities under the covers as well as refinements that streamline its user experience for you.
We've revamped the subscription payments system so that whether you choose to use Apple iOS App Store subscriptions, Google Play Store subscriptions, or subscribe directly through Vault12 using ETH or VGT, you have multiple options of simple and straightforward ways to subscribe.
Here's the rest of the news:
New Enhancements in Vault12 Guard Version 2.3
- Pay-by-Crypto Subscriptions via VGT and ETH
- Seamless Subscription Journey
- Comprehensive Data Control
- Faster Vault Status Updates
- Android 14 Ready
- Enhanced Reporting Privacy
- More-Polished Experience
Pay-by-Crypto Subscription via ETH or VGT (includes 50% discount)
In previous releases, we switched to using native subscription options provided by the Google and Apple App Stores, and now with this release we have released a streamlined capability to enable subscriptions using Ethereum (ETH) or the Vault Guardian Token (VGT).
To access the subscription options, visit the website and click on "My Subscriptions," or just go to pay.vault12.com.
Key highlights include a simple process, and no extra ETH payments required beyond the wallet fees associated with transferring crypto to your subscription deposit address.
For a full step-by-step walkthrough, visit our help article: How to subscribe to Vault12 Guard with $ETH and $VGT (and get a 50% Discount)
My Subscription
Vault12 Guard Subscription Plans
Seamless Subscription Journey
We have simplified the available Subscription plans to match how everyday people like to use the app:
Basic - For checking out the app, and for Guardians (free forever).
Backup - For people using the app to ensure they have a decentralized backup of all their crypto wallets. This includes the ability to assign Guardians and to ensure that your Vault can be recreated in the event of loss of your device.
Inheritance - For everyone who wants to ensure that their crypto assets can be passed on to their family or designated heirs.
Comprehensive Data Control
We have added options to ensure that you can erase your data inside the app, as well as on any data stored by Guardian devices.
Faster Vault Status Update
Generally speaking, updates within the app and Guardian devices are asynchronous, so now you are able to immediately refresh your Vault status by simply pulling down in the app.
Android 14 Ready
This release supports Android 14, including newly-announced features.
Enhanced Reporting Privacy
Opt-in to anonymously issue reports that can help us to enhance the app.
A More-Polished Experience
Revamped dialogs, improved localizations, and minor fixes make the app more graceful to use.
Crypto Inheritance Update: April 2025 Part 2
- Regs Update.
- Vault12 Guard Product Updates.
- New to Crypto Inheritance? Start here.
The Digital Commonwealth Summit with Dr. Lisa Cameron, former MP, Tom Duff Gordon, Coinbase and Wasim Ahmad, Vault12 discussing US crypto policies rippling around the world.The Digital Commonwealth Summit
Update
April was a jam packed month - Paris Blockchain Week, confirmation of the chairman of the SEC, Stablecoin bills, The Digital Commonwealth Summit in London and then the Hill & Valley Forum in Washington DC - so here is part 2 of our April update.
Key Takeaways:
- Paris Blockchain Week was disappointing, with an all pervading sense of depressing dread seeping everywhere.
Companies in Europe have to go through 2,000 pages of regulations and find a way through — once they do that they get access to markets in Europe, which is a plus. Companies outside of Europe - other than the big fintech platforms will not spend anytime considering Europe as a base. Even Ledger, a French company that derives 60% of its revenue from the US (pre-tarriffs) is not happy with European regulations and will be focused on the US market - remember you should always back up your ledger in Vault12 Guard :) - UK - Lot’s of positive but very slow progress. I had to rebuke the FCA for stifling growth and strangling innovation in Great Britain. Luckily there are some stalwart leaders pushing the pro-innovation pro-digital asset agenda - people like Dr. Lisa Cameron, USUK Alliance, Coinbase and Stand with Crypto UK, Katie Herries together with support from the upper echelons of the UK government like Baroness Uddin, Lord Holmes and Lord Iain McNichol. The opportunity for the UK as a differentiated digital assets hub hinges on alignment and regulatory passporting with the US, this much is becoming clear to many more — need it percolate up to the Government, regulators and lawmakers on all sides.
- US - Finally, Chairman Paul Atkins took the helm of the SEC and was sworn in this week. He has reaffirmed his priorities for cleaning up the crypto market. The upcoming Market Structure Bill (aka FIT21) draft is due this week, a comprehensive bill that defines how crypto markets are regulated, the roles of security and utility tokens, and other market-defining capabilities that will eventually become the standard for worldwide crypto regulation. This is widely expected to be signed into law in August 1, 2025.Impact: While these bills and regulations are being worked on, attitudes and behaviour towards crypto assets may start to change; however, it is important to note that since no laws have changed, until the Market Structure Bill is in place, we remain in nebulous territory with respect to how tokens can be freely disseminated.
The media has reported that firms are applying pressure to consolidate all the bills into a single one and get that passed in one go. While this reflects the danger of losing the attention of lawmakers - multiple bills have been developed in parallel to ensure that the repeal of any one bill by a future administration will not bring the whole crypto market crashing down. - Was in DC this week and got to hear from the Senators and Congressmen, who are behind the efforts to bring clarity to crypto markets - GENIUS, STABLE bills and the upcoming Market Structure Bill. Also got to sit across from Crypto/AI Czar, David Sacks at the Hill & Valley Forum.
- Working on something exciting in DC - more to say in May.
- Stars Podcast:
https://x.com/TheStarsPodcast/status/1914707698408... - CryptoMondays Global Podcast
https://vault12.com/blog/podcast/podcast-crypto-in...
Podcasts:
Vault12 Guard Product Updates
April 2025 - Version 2.6.1
- New "Manage My Vault" page enables you subscribe to Vault12 plans using app store or crypto payments, in addition, provides a place to transport files directly into your Vault.
- Universal file transportation. You can now securely transport assets to your Vault from any device. Visit the Manage My Vault site to upload password backups, secret documents, PINs, and—of course—your crypto keys from Windows, Android, macOS, iOS, iPadOS, and more. Files are instantly transferred to your Vault with zero traces left behind once you close your browser tab. It’s simple, fast, and secure—just like the Vault12 Guard app.
- New Actions Dashboard. Stay on top of every important request from your Guardians or the Owner you support. Recover assets, access restored files, or configure Inheritance - all just a tap away. You can even play voice memos directly from the main screen.
- Various bug fixes and performance improvements for the smoothest experience.
New to Crypto
Ah, April – spring is in the air, taxes are due in many regions, and peoples' fancies turn to both love and long-term financial planning! The first step towards putting your long-term financial house in order is to visualize your inheritance goals. Not sure where to start? Vault12 has an article that breaks down for you the difference between estate planning and crypto inheritance planning. You will be more carefree after you plan for what happens to your crypto after you're gone.
Crypto acceptance is growing not only at the level of national governments, but also with smaller localities. This month, Panama City, Panama announced that they will accept crypto payments for municipal taxes, fines, and permits. Another sign to get ready for digital payment opportunities by having your own digital wallet!
As the crypto financial industry grows, so does the scale of crypto hacks and other crimes. In fact, The Street reports that Q1 of 2025 was the worst quarter ever for crypto hacks. (This was largely due to the enormous Bybit exchange hack in February, but there have been plenty more.) You can't control the security of crypto exchanges, but you can control your own security. Make sure you know the basics about how to protect your digital assets.
Which is a better wallet: Ledger Nano X or Exodus?
When choosing crypto wallets, many users base their decisions on day-to-day asset management needs and perceived wallet or device security. However, savvy crypto users first consider a wallet's ability to handle long-term security scenarios.
Long-term security includes expected essentials like backup and recovery tools, and often-overlooked features related to secure and fault-proof third-party recovery. Wait, what's third-party recovery? You can think of third-party recovery as your ability to allow crypto assets to be inherited by successors. All crypto investors should have a comprehensive security strategy for the full life cycle of their crypto assets.
Let's begin by helping you understand the pros and cons of the Ledger Nano X hardware wallet and the Exodus software wallet for day-to-day activities, as well as considering their ability to safeguard the long-term security of your assets.
Overview
The Ledger Nano X and Exodus wallets both provide a wide variety of features and support a broad spectrum of cryptocurrencies, making them suitable for diverse crypto portfolios.
At a high level, several differences are clear:
Ledger Nano X
- Form: A hardware wallet, with mobile-centric usability via Bluetooth.
- General Usability: User-friendly (with necessary trade-offs due to its more-robust security features).
- Design: Compact and durable. The de facto standard for securing transactions on desktops.
- Price Point: It's not free, like software wallets are.
Exodus
- Form: A software wallet, available in both mobile and desktop versions.
- General Usability: Easy to use, and has particularly well-reviewed customer support.
- Design: Built-in exchange features and a moderate number of integrations.
- Price Point: The wallet software is free; the company makes money on exchange services provided through the wallet.
The decision between the two will likely hinge on individual preferences for target security requirements, preferred platforms (mobile or desktop), and should take into account the planned frequency of use.
Approach to comparison
Now, let's have a closer look.
When choosing the best hardware wallet for cryptocurrency security, you may wonder not only which is better, the Ledger Nano X or the Exodus, but also:
- What happens if your wallet is lost or stolen? (How well can these wallets recover from user errors?)
- How do these wallets handle more advanced scenarios like inheritance of crypto assets?
- How easy to use are these wallets?
- How do their security features compare?
This article compares important characteristics for these two popular wallets. We’ll break down the strengths and weaknesses of each, focusing on security, ease of use, and backup and recovery methods. By the end of this comparison, you’ll clearly understand which wallet is right for you, as well as how to recover your crypto assets in case of accidents.
What happens if your wallet is lost or stolen?
Wise wallet owners recognize the critical importance of crypto recovery before they find themselves in an unexpected bind! That's why it's important to understand the fundamental topic of crypto asset longevity, including features such as backup, recovery, and inheritance for crypto assets. These considerations are central to long-term planning.
Technical security is essential, but in the world of crypto, the degree to which backup and recovery solutions are foolproof for users is at least equally important. Here are the backup and recovery options for these two wallets:
How do these wallets handle Crypto Inheritance?
Crypto Inheritance Features
Currently, most crypto wallets, including the Ledger Nano X and Exodus, lack any features for establishing and managing crypto inheritance. This gap presents a challenge for users who want to be sure that their crypto assets can be transferred to their heirs.
Backup and recovery differentiators
Ledger Nano X Recover service Disadvantages:
- The optional Ledger Recover backup service is a paid service provided by three corporations that each hold parts of the user’s seed phrase in a cloud. This introduces risks, as the seed phrase could potentially be accessed via subpoena; or business partners could terminate agreements or become involved in lawsuits that result in locked data or resources (like, for example, Gemini and Genesis). These scenarios contain multiple potential points of failure.
- Very important detail: The terms of the optional Ledger Recover service do not mention support for inheritance, meaning any unfortunate accident related to the user could make crypto assets unrecoverable for his or her successors. Ledger itself suggests using 3rd-party crypto inheritance services for those purposes.
Ledger Nano X Recover service Advantages:
- People have different preferences. If a user is comfortable trusting a bank with their assets, they might also feel confident using Ledger Recover for securing their seed phrase backup (even though Ledger is not providing the entire cloud backup solution).
Exodus backup Disadvantages:
- Exodus has a cloud backup feature that comes with similar security assumptions and risks as all other passwords stored in your cloud provider. It is not recommended to rely on cloud backups for significant crypto balances.
Exodus backup Advantages:
- Exodus does offer a one-click solution for backup for insignificant balances of crypto.
How easy are these crypto wallets to use?
Let's compare the key aspects of both wallets side by side, and then summarize what really stands out for user convenience:
Crypto wallet user experience (UX) differences
Ledger Nano X with Smartphone UX
Ledger Nano X Disadvantages:
- The display is literally the size of a coin: very uncomfortable to use.
- Requires two-handed operation, making it difficult to use with a phone simultaneously — contrary to some misleading ads.
- The buttons are stiff, making operations cumbersome.
Ledger Nano X Advantages:
- Offers Bluetooth connectivity — works with or without a cable, at least with smartphones.
- Wide support for third-party wallets and dapps, allowing the Ledger Nano X to sign transactions directly in MetaMask, Uniswap, and other platforms without relying on Ledger Live software. This is a huge advantage for DeFi users.
Exodus UX Disadvantages:
- As a product that prioritizes ease of use, Exodus does not offer a full suite of advanced features such as fiat currency on/off ramps or advanced Web3 / DeFi integrations.
- The desktop version of Exodus offers more features than the mobile version (e.g., portfolio management tools, Trezor hardware integration, and a broader set of supported cryptocurrencies).
Exodus UX Advantages:
- Exodus is generally more user-friendly than the Ledger Nano X (and other hardware wallets).
How do these wallets' security features compare?
Now, we dive deeper into the core specification of every hardware wallet: security features.
| Ledger Nano X | Exodus | |
| PIN-code | 4 - 8 digits | up to 6 digits |
| BIP39 Passphrase | Yes | No |
| Open-source | Partial | Partial |
| Secure Element | Yes | No |
| Multisignature | Yes | No |
Crypto wallet security feature differentiators
Ledger Nano X security Disadvantages:
- Some critical components are closed-source. This raises concerns, especially after the controversial introduction of the Ledger Recover backup service, which challenged the previous assumption that the Secure Element could never transmit the recovery seed phrase outside the hardware wallet.
Ledger Nano X security Advantages:
- Includes a Secure Element, giving Ledger devices a strong reputation for withstanding physical attacks. This is important for users who prefer not to complicate their security with BIP39 passphrases, prioritizing ease of use.
Exodus security Disadvantages:
- Portions of the Exodus wallet are closed-source, preventing full transparency of its code security.
- Exodus, like all software wallets, operates in an inherently less-secure operating environment than a hardware wallet.
- As a software wallet, Exodus lacks a Secure Element.
- Exodus lacks support for some common security extensions such as 2-factor authentication, creation of multisignature transactions, and entry of a wallet "extra word" passphrase.
Exodus security Advantages:
- Some of Exodus's security disadvantages could be mitigated by using Exodus together (integrated) with Ledger Nano X (they are compatible with each other).
Summary of Ledger Nano X and Exodus Comparison
The Ledger Nano X and Exodus both provide a respectable set of features, and support a broad spectrum of cryptocurrencies, making them suitable for diverse crypto portfolios.
The Ledger Nano X is a mobile-friendly, security-oriented solution, and offers a balance of security and convenience features. It provides a small display and uncomfortable input, but with the advantages of a Secure Element and wireless connectivity options like Bluetooth.
On the other hand, Exodus is free and simple, but provides fewer security capabilities. It's great for beginning users and suitable for relatively small amounts of crypto.
The decision between the two will likely hinge on individual preferences for the target use case and balance, and should take into account the planned frequency of use.
Given their convenient integration, the best of all worlds could be to use both wallets, holding larger amounts of crypto in your Ledger Nano X wallet while keeping a small, ready-to-transact "petty cash" stash in your Exodus wallet.
Whichever you choose, remember to add crypto inheritance to your choice of wallet to ensure the long-term safety of your digital assets.
Vault12 Guard: a decentralized solution for Crypto Inheritance
Vault12 is the pioneer in Crypto Inheritance Management, and delivers an easy-to-use and securemethod for assigning a legacy contact to your crypto wallets. This enables you to pass on your wallet seed phrases and private keys for all types of digital assets to future generations. Vault12 Guard is designed for everyday people, yet strong enough for Crypto OGs.
Vault12 Guard has a uniquely-secure design. Utilizing advanced encryption and decentralized storage, it ensures that crypto assets are not only safe but also transferable under predefined conditions, filling a critical need unmet by most traditional hardware wallets. Vault12 Guard applies a hybrid approach of software fused with the hardware-based Secure Element of phone devices (The Secure Enclave for iOS devices, and Strongbox for Google devices). Vault12 Guard's decentralized design reduces possible points of failure. Nothing is stored on cloud servers or Vault12 servers, and no assets are stored on local devices, making them less of a target.
From a user perspective, the Vault12 Guard app asks users to appoint one or more people (or mobile devices) as Guardians. The designated Guardians are entrusted to protect the user's comprehensive collection of wallet seed phrases and private keys, which are safely stored within a decentralized digital Vault. Its simple, user-friendly workflow removes the necessity for regularly revising wallet inventories or modifying instructions for your lawyers — a process that otherwise could lead to privacy breaches.
Both the Ledger Nano X and Exodus are compatible with Vault12 Guard Inheritance. This addresses the seed phrase backup dilemma for any hardware wallet. It also makes less-secure backup methods, such as paper or steel plates, unnecessary.
Stablecoins' momentum builds in bridging traditional and digital assets
There is a lot of buzz about stablecoins. So what are they, should you have some, and how should you protect them if you do have some?
First, let's review what they are: stablecoins are blockchain-based tokens that are designed to act as stable forms of value. Their prices are synchronized to predictable external assets, such as stable currencies. But unlike currency, which can be slow to deploy or move (whether physically or via a bank electronic transaction), stablecoins instantly can be transferred or exchanged for a huge array of digital assets.
Given their stable value, stablecoins have a unique place in the crypto world: unlike more-volatile cryptocurrencies, they act as low-risk intermediaries between digital assets and other traditional forms of value.
And even though their role is intermediary, they could be held for short periods of time, or long ones. Let’s consider why so many people and institutions buy stablecoins — and sometimes hold them for long periods of time.
What are the most common use cases for stablecoins?
There are many ways that people and institutions use stablecoins:
As a mechanism for exchange between other forms of value: Some people buy stablecoins for just a short period of time to support making another transactions: for example, it may be necessary to buy stablecoins when moving fiat currency to or from a centralized exchange, or converting between two different types of cryptocurrencies if there is no direct exchange possible between them. A huge market that uses stablecoins as a medium of exchange is International remittences.
As a store of wealth: Stablecoins offer a more stable form of wealth preservation than holding cash in a country with high inflation or an otherwise-volatile currency (e.g., Argentina and Turkey).
As liquidity: Stablecoins provide ready-to-deploy financial liquidity that can be used to quickly participate in DeFi opportunities or trade for other cryptocurrencies when time is of the essence (without needing to slog through slow fiat on-ramps).
As loan collateral to avoid a taxable crypto sale: By borrowing stablecoins against their crypto assets on DeFi, holders can utilize their capital or spend some proceeds without selling crypto assets — thereby avoiding the tax consequences of a sale.
As an investment that bears yields: Stablecoins can be used to earn yield (this typically requires allowing an exchange or DeFi platform to “lock” them).
As a low-risk hedge relative to other investments: Stablecoins can be used to reduce risk as part of a balanced digital portfolio.
Stablecoins and investment risk
If you are considering investing in stablecoins, remember that:
- If you let a centralized exchange hold the keys to your coins, you are subject to third-party risks related to trusting the company, their security, and their financial health. (Remember, "Not your keys, not your coins.") Understand how to manage your keys.
- If you hold your own keys and invest via DeFi, you are subject to the risks of associated smart contracts having bugs, vulnerabilities, or otherwise behaving in unexpected ways.
Nothing is risk-free in life, especially in investing. Choose the levels and forms of risks that you are comfortable with as appropriate for your situation.
How did stablecoins evolve?
When cryptocurrencies like Bitcoin, Ethereum, and altcoins first joined the financial scene, their extreme volatility made them high-risk, speculative investments. Most coins have rollercoaster price periods! Stablecoins were introduced as a way to buffer that volatility.
But a few kinks had to be worked out first: some early attempts to build stablecoins failed because their price was not as stable as the issuers had planned. Specifically, algorithmic stablecoins, which were meant to hold a stable value based on mathematical algorithms, smart contracts, and modeled market behaviors, did not always perform as expected.
For example, the algorithmic stablecoin TerraUSD spectacularly failed in May 2022 due to faulty assumptions in the design of the algorithm about market behavior in response to unexpected events. As a result of several failed algorithmic stablecoins, these days, algorithmic stablecoins have lost much of their initial popularity.
Modern stablecoins
Most stablecoins today are backed by real-world assets (collateral), such as currency, government treasury bonds, cryptocurrencies (sufficiently over-collateralized to buffer against volatility), or baskets of commodities. Confidence is improved when tangible assets back up digital coins, not just trust in the behavior of a "pegging" algorithm.
Transparency, maturity, and regulatory acceptance all lead to increased use of stablecoins. Today's largest stablecoins have made leaps and bounds towards achieving each of those ends. Reflecting this evolution, stablecoins have been making up an increasing share of on-chain transactions — more than half of all crypto transactions — as the following chart demonstrates.
Chainalysis via Claude.ai
Stablecoin successes
Several collateralized U.S. Dollar stablecoins from private corporate issuers have matured and gained popular acceptance. Among them, descending by market capitalization:
- USDT ("Tether"), from Tether
- USDC ("USDC Coin"), from The Centre Consortium (founded by Circle and Coinbase)
- PYUSD ("PayPalUSD"), from Paxos Trust Company
- RLUSD ("Ripple USD"), from Ripple
According to the "State of Stablecoins in 2025" report by Dune and Artemis, Tether shows stablecoin leadership in volume and market penetration with a $146 billion market cap, while USDC Coin, with a $56-60 billion market cap, excels in institutional adoption and DeFi usage, driven by its regulatory compliance and on-chain activity.
If you'd like a deep dive into the differences between USDT and USDC, we recommend Coin Bureau's insightful comparison.
What financial institutions issue or transact in stablecoins?
Crypto exchanges and stablecoin issuers necessarily hold large quantities of stablecoins, but did you know that many other major financial institutions are moving into the use of stablecoins as well? Institutions like Visa, Bank of America, and Revolut are using or piloting projects to issue and accept selected stablecoins as part of their service packages and partnerships. Even Fidelity Investments is testing their own stablecoin.
How is the United States handling stablecoins?
The United States is undergoing a sea change in its stablecoin appetite, having issued new guidance in March 2025 permitting banks to engage in both crypto custody and certain stablecoin activities. And the Guiding and Establishing National Innovation for U.S. Stablecoins Act of 2025 (“GENIUS Act”), which describes a broader range of stablecoin guidance, is quickly approaching finalization as law. Further, the U.S. Treasury Secretary Scott Bessent has even announced plans to leverage stablecoins backed by U.S. Treasury bills to bolster the dollar's position as the world's dominant reserve currency.
Regulatory clarity for stablecoins is happening fast, which reduces risks for all users.
How can you protect the stablecoins in your digital wallet?
If you hold stablecoins in a digital wallet, you should include them in a secure wallet backup and an inheritance plan just as you would for your other digital assets. Don’t put off thinking about the possibility of wallet access disruptions, or about your digital inheritance.
- Back up your wallet seed phrase so that you can restore your wallet if you ever lose access to it. A decentralized Digital Vault is the most effective place to safeguard your digital assets.
- Think about who your digital asset beneficiary or beneficiaries should be, and plan your digital inheritance.
- You could also choose to keep your Centralized Exchange passwords in your Vault12 Digital Vault, as well as any other related passwords. A Digital Vault is more secure than a standard password manager.
"Failing to plan is planning to fail."— Benjamin Franklin
Vault12 Guard can protect all of the digital assets that you hold
The Vault12 Guard Digital Vault can protect the stablecoins and all other digital assets in your wallets. See how easy it can be for you to protect your digital wealth in a decentralized way using your personal choice of Vault Guardians. Simply and conveniently protect all of your digital assets today in your own Digital Vault. When you’re ready, take it a step further to secure the future of your digital wealth with Vault12 Digital Inheritance.
Crypto Inheritance Update: DC Blockchain Summit
Special Update from DC Blockchain Summit 2025
Peirce: The SEC's approach has put innovators in 'straightjackets'
Thanks for reading Vault12 Crypto Inheritance Newsletter! Subscribe for free to receive new posts and support my work.
DC Blockchain Summit was a terrifically ebullient event, with attendees feeling enthusiastic having survived the last administration’s attempts to strangle crypto innovation in the United States.
The Summit is put on by the Digital Chamber of Commerce, which is a lobbying group that Vault12 has been a member of and has participated actively in working groups to shape bills and legislation.
Key Takeaways:
- We have a clear timeline for new bills and regulations regulating crypto in the U.S.
- First up is the Stablecoin bill, which is expected to pass and be signed into law this Spring. This is important for Vault12 customers as it means that dramatically more retail investors will be exposed to cryptocurrency and therefore the need to safeguard their digital assets.
- Second is the Market Structure Bill (aka FIT21), a comprehensive bill that will define how crypto markets are regulated, the roles of security and utility tokens, and other market-defining capabilities that will eventually become the standard for worldwide crypto regulation. This is widely expected to be signed into law in August 2025.
Impact: While these bills and regulations are being worked on, attitudes and behaviour towards crypto assets may start to change; however, it is important to note that since no laws have changed, until the Market Structure Bill is in place, we remain in nebulous territory with respect to how tokens can be freely disseminated.
Further Reading:
- In remarks at the DC Blockchain Summit, Commissioner Hester Peirce said, “The Crypto Task Force has had many helpful meetings with outside parties, and we already have received approximately fifty thoughtful written submissions. The Task Force’s first public roundtable last Friday was a productive conversation among thoughtful experts with varied views. Additional roundtables are on the schedule. All of this engagement is extremely helpful, as we consider how the Commission and its staff can provide clarity about what is outside of our jurisdiction and practical compliance solutions for activities that are within our jurisdiction. For example, as the discussion at our recent roundtable highlighted, the Commission needs to think separately about transactions and assets that are the subject of transactions. Many crypto assets themselves are not securities, but primary offerings of crypto assets for capital raising purposes are securities transactions. Accordingly, staff is open to inquiries about how to conduct such offerings as either registered or exempt transactions. And the Task Force welcomes well-reasoned requests for no-action letters or exemptive relief that can be finalized quickly to allow activity to start soon. Lessons learned from these short- and medium-term efforts can inform longer-term regulatory and legislative efforts.” (Remarks)
- Rep. Tom Emmer (R-MN) tweeted, “Today, RepDarrenSoto and I reintroduced the bipartisan Securities Clarity Act to codify, once and for all, that, like the orange groves in SEC v. W. J. Howey Co., a digital asset is separate and distinct from an investment contract through which it may be offered. American prosperity, ingenuity, and opportunity demand legal clarity. The Securities Clarity Act is one piece of that puzzle.”
This short bill simply legally separates a digital asset from the offering in which it is sold. Therefore, despite being sold as part of a securities offering, the underlying digital asset can still be deemed a commodity (or otherwise not a security) if it has utility on a network or is decentralized, etc. This bill was part of last-year’s FIT21 Act. So, presumably, when this year’s version of the FIT21 Act is written, it will also contain this bill. Congress can therefore pass it as a stand-alone or as part of the bigger bill.
The reason this bill is still important is that by incorporating this separation directly into federal law, subsequent administrations cannot unilaterally go back to the Gensler position. The Vault12 legal team also had separate meetings with the SEC Crypto Taskforce and is excited to continue to give feedback to the team as these regulations are formulated to optimize the crypto industry in the US.
We will issue another roundup in a couple of weeks, currently in Paris, where we are attending the Finance and Blockchain Summit held at the French Ministry of Economy and Finance during Paris Blockchain Week.
We are also trying to locate a Vault to record a podcast in.
New to Crypto Inheritance? Start here.
Worried about leaving your crypto on exchanges?
Maybe February’s massive ($1.4 Billion USD) Dubai-based Bybit exchange hack caught your attention. Fortunately, it seems that client assets are guaranteed … although this by no means implies that all future hacks of exchanges will end so neatly. The main lesson for digital asset owners might be that even professionals are susceptible to being tricked by sophisticated attackers. The concept of self-custody versus third-party custody of assets is important to understand: there are common pitfalls in trusting others to protect your assets and pitfalls of doing it yourself, as explained at a high level in “Why should you care about cryptocurrency security?”
Digital asset privacy still controversial
Privacy is one of the challenges that lingers unresolved in the digital assets space. Digital privacy is multi-faceted: what should government agencies, crypto exchanges, and the general public know about your digital asset ownership and transactions? There is a balance of arguably legitimate “need to know” by financial regulators, as well as a vast assortment of illegitimate interests that sophisticated bad actors can abuse. One aspect of this delicate balance became clearer on March 12, 2025, when the United States Congress declared that DeFi protocols do not have an obligation to report taxpayer proceeds from crypto sales to the Internal Revenue Service. (Of course, U.S. citizens still have to!) If you’d like to review and refresh your memory about protecting your privacy as a digital asset owner, don’t miss our article “Why Does Privacy Matter?” that explores related issues and offers practical recommendations.
The cat-and-mouse evolution of crypto scams and hacks
On March 10, 2025, the California Department of Financial Protection and Innovation (DFPI) updated its catalog of crypto threats, reporting on numerous scam websites that it took down in 2024, and issued renewed warnings to digital asset owners to remain vigilant against trickery of all kinds. Stay aware of the evolving landscape of threats, and follow best practices to reduce your risks. Reconsider your protective habits with the help of our actionable recommendations in “11 things you need for a safer crypto environment.”
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Vault12 Guard provides inheritance, and secure decentralized backup of seed phrases and/or private keys, giving Bitcoin (BTC), Ethereum (ETH).
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