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 secure method 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 Circle (until 2023, issued by the Centre Consortium, founded by both 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.
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 secure method 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.
Basics
Learn about how the risks of holding cryptocurrency are different than those of traditional investments, and how to move ahead with confidence and safety.
View all articlesStablecoins' 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 Circle (until 2023, issued by the Centre Consortium, founded by both 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.
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
ChatGPT
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.
Inheritance Management
Managing digital assets like cryptocurrencies can be complex, especially when it comes to inheritance.
View all articles$6 Trillion of Crypto Assets to Be Inherited by 2045
Over the next two decades, up to $6 trillion in crypto could be inherited, as younger investors favor digital assets over traditional stocks and bonds. Learn how this shift is reshaping wealth transfer and the future of investing
Unprecedented Asset Transfer via Inheritance by 2045
A recent report, the 2024 Bank of America Private Bank Study on Wealthy Americans, reveals key trends related to inheritance, and particularly how younger generations view the future of wealth, including crypto and estate planning.
An astounding $84 trillion of wealth transfer is projected over the next 20 years from current generations to Gen X, Millenials and Gen Z. Renowned expert Matthew Sigil, head of digital assets research at Van Eck (a prominent issuer of Bitcoin ETFs) has estimated that of this amount, $6T in crypto assets will be passed on via inheritance.
This transfer will be successful only if care and attention are paid to crypto inheritance planning and management, and if the right approaches are in place to support the technical transfer of these funds. Crypto assets are technically different in a number of ways to traditional assets, so inheritance needs to be carefully choreographed between asset owners, Trust and Estate Lawyers, and intended crypto beneficiaries.
Despite the fact that important steps must be taken for the safe, secure, and private transfer of crypto assets, none of the participants in the crypto ecosystem have offered inheritance plans or services. The pioneer of crypto inheritance management since 2015 has been Vault12.
Vault12 has built and continues to innovate a comprehensive solution that is easy to use for non-technical participants, yet incorporates a highly secure architecture and technology that is designed to preserve your crypto wealth and ensure successful transfer to your heirs. Learn more at vault12.com.
The Bank of America Private Bank Study
This report by Bank of America Private Bank analyzes financial outlooks, investing habits, and estate planning practices of wealthy Americans. The study reveals a generational divide, with younger wealthy individuals exhibiting different investment preferences than older generations. Younger individuals tend to be more skeptical of traditional investment strategies, and favor alternatives like cryptocurrencies and private equity. The study highlights the challenges facing wealthy families as they navigate wealth transfer, including the emotional strain of inheritance and the increasing burden of serving as trustee or executor.
Takeaways
- Great Wealth Transfer: Approximately $84 trillion is projected to transfer from seniors and baby boomers to Gen X, millennials, and their heirs by 2045.
- Crypto Inheritance Surge: Matthew Sigel of VanEck Investments estimates that up to $6 trillion could enter the crypto market through inheritance in the next 20 years.
- Investment Shifts: Millennials and Gen Xers will inherit $84 trillion, with a growing proportion of cryptocurrencies.
- Young Investor Participation: To reach the $6 trillion estimate, young investors (ages 21-43) need to allocate 14% of their inherited wealth to crypto: about $300 billion annually.
- Broader Investment Preferences: Many young investors view traditional stocks and bonds as insufficient for superior returns, preferring high-growth assets like cryptocurrencies.
- Risk Appetite by Generation: Younger investors show a higher risk tolerance, with significant crypto allocations (14%-17%) compared to older investors, who remain conservative.
- Crypto Exposure: Younger investors hold the highest average exposure to crypto, highlighting a shift in how the next generation approaches digital assets.
Sources:
2024 Bank of America Private Bank Study of Wealthy Americans
VanEck: $6 Trillion Could Pour Into Bitcoin, XRP and Crypto via Inheritances Over 20 Years
Crypto and Digital Asset Allocations
Bank of America 2024 Private Bank Study on Wealthy Americans
Crypto, Inheritance, and Wealth Management in Younger Generations
The 2024 Bank of America Private Bank Study on Wealthy Americans focuses on several key trends related to inheritance, particularly how younger generations view the future of wealth, including crypto and estate planning.
1. Crypto and Digital Assets
Younger generations (ages 21-42) are more inclined to see digital assets like cryptocurrency as a key growth opportunity. Around 28% of younger respondents ranked crypto as a promising investment vehicle, significantly higher than older generations, where only 4% expressed the same confidence. This highlights the generational shift towards embracing newer financial instruments like blockchain and decentralized finance.
2. Inheritance and Estate Planning
Interpersonal family dynamics can create tension during wealth transfers. For both younger and older wealthy individuals, unequal distribution of assets and a lack of clear instructions or communication were common sources of strain. Younger generations are more focused on including hard assets like jewelry and heirlooms — which are frequently overlooked in formal planning — in their estate plans.
3. Generational Differences in Wealth Management
Younger heirs are more likely to pursue alternative investment strategies, such as private equity and digital tools, reflecting their broader interest in controlling their wealth. These individuals also prioritize sustainability and impact investing as part of their inheritance planning, distinguishing their approach from older generations.
These insights demonstrate the ongoing generational divide in attitudes toward wealth management and the evolving role of digital assets in estate planning.
Inheritance and Estate Planning "Strain Points"
Factors driving strain on inheritance-related issues
Bank of America 2024 Private Bank Study
What you need to know about Crypto Inheritance Planning
Unlike traditional assets, crypto assets need to be managed differently from an inheritance standpoint. In fact, the only similarity between traditional and digital assets is that you must maintain an update inventory of them. The main challenges associated with crypto inheritance are:
- Inventory of crypto assets: You must carefully maintain an inventory of crypto assets. This means backing up seed phrases and/or private keys of all crypto wallets, across all blockchains, and all types of devices or places where those wallets exist, e.g., mobile phones, hardware wallets, cloud, and paper backups. Any assets that are not documented in your backup are liable to be lost.
- Privacy of all information: You must ensure absolute privacy of the backup information. Anyone with access to private keys or seed phrases will be able to compromise the funds. This includes ensuring that any documentation left with your lawyers is strongly protected.
- Critical Points of Failure: You must eliminate personal devices and cloud services as critical points of failure. The most significant risk in inheritance is reliance on individual devices, which can be stolen, lost, or damaged. The second risk is the dependency on one or more cloud servers. We have seen what happens when business relationships between cloud partners face legal challenges, or cloud services are disrupted by malware or bad software updates.
- Technical Beneficiary awareness: As the varieties of crypto assets expand over time, staying aware of them becomes important. You will need to designate someone technically fluent in this area. They may not be the ultimate beneficiary; however, you will need to trust them to distribute the assets per your wishes.
- Trust & Estate Attorney: You must consult with experienced lawyers who are well versed in inheritance of crypto assets. A great resource is "A Practical Guide to Estate Administration and Crypto Assets" by Richard Marshall from Hill Dickinson LLP.
Why Choose Vault12 Guard for Crypto Inheritance Management?
Vault12 is the pioneer of crypto inheritance management, and Vault12 Guard is the first solution to offer a simple, direct, and secure way for all types of investors to ensure that all of their crypto assets can be accessed by future generations.
Consider that:
- Traditional approaches to the inheritance of assets, when applied to digital assets, create complexity and risk.
- Your portfolio of digital assets is continually changing — you cannot rely on doing an inventory once, or for that matter continuously, without assistance.
- A simple and direct approach like Vault12 Guard reduces the uncertainty around assets not being available to the designated recipient. It also avoids having to approach and petition each service individually during probate to gain access.
- Inventory of crypto assets: The first step in inheritance is backing up all your crypto wallets. Vault12 makes this as easy as possible - despite the appalling lack of usability in current hardware and software wallets. There will always be new crypto assets on new blockchains, and Vault12 can manage any crypto asset on any device, on any blockchain, now and in the future.
- Privacy of all information: Your crypto assets are protected via a Secure Element (Secure Enclave in iOS, and Strongbox on Google Android phones), and the encryption used is Quantum-safe. With this security, no one knows what assets are part of your Vault.
- No Critical Points of Failure: No assets are stored locally, no assets are stored in any cloud, and no assets are stored at Vault12. There are no devices to lose, no paper backups, and no need to manually give encrypted assets to a subset of people. The Vault12 system is decentralized, making it a difficult target for hackers — and in fact for any type of failure.
- Confidence in a Technical Beneficiary: With Vault12 you get to designate a trusted technical beneficiary. Should you change your mind, you can swap them out at any time.
- Flexibility in Trust & Estate Attorney: While regulations and guidelines for inheritance planning can vary from state to state and country to country, Vault12 Guard is designed to be independent of whatever legal framework you choose to govern the inheritance of your assets. Vault12 Guard is simply a transfer mechanism that ensures all your crypto assets are passed from your control to a designated technical beneficiary.
Key Product Features of Vault12 Guard
The Vault12 platform provides your crypto assets with the highest security and strong backup resilience. Vault12 Guard Inheritance enables you to designate a beneficiary (an executor, trustee, or other chosen beneficiary) who can inherit the entire portfolio of digital assets that you choose to store in your Vault. There is no need to update an inventory continually or to issue updated instructions.
- Unified Digital Vault: Use Vault12 Guard Digital Vault to store digital assets, including cryptocurrency, financial login information, legal documents, medical records, and more.
- Guardian Network: The Vault is protected by your network of Guardians: friends, family, and/or business associates — people that you know and trust.
- Beneficiary Designation: Designate a beneficiary from your chosen Guardians. A declaration is then digitally signed, and can be emailed to other parties, such as lawyers.
- Trigger-Based Access: As a Vault Owner, you can configure a legally-defined trigger such as incapacitation or death. When the trigger occurs, the beneficiary indicates they are ready to access the digital assets. Assets are unlocked and transferred to the beneficiary only when a designated number of Guardians approve the request.
- Preemptive Veto Option: Should the beneficiary attempt to access the assets before they are intended to, the owner can veto the request before any of the Guardians receive an approval request.
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Backup and Inheritance for Bitcoin Runes
What are Inscriptions, Ordinals, and Runes?
We recently shared the story about how in 2023, the Ordinals protocol was added to the Bitcoin network. Users began to use Ordinals to inscribe unique data (NFT "inscriptions") directly onto Bitcoin satoshis, and soon thereafter, Ordinals inscriptions enabled the creation of fungible BRC-20 tokens on the Bitcoin blockchain. Inscription-based Bitcoin NFTs and BRC-20 tokens expanded the Bitcoin landscape to encompass both fungible and non-fungible tokens. BRC-20 tokens became fairly popular, achieving a market cap exceeding $2 billion.
Then in September 2023, just as Ordinals was reaching peak popularity, the same developer behind Ordinals, Casey Rodarmor, proposed another new protocol for tokens on Bitcoin: Runes. Runes introduces a fresh token standard for Bitcoin, streamlining the process of creating fungible tokens and enhancing efficiency for users. The motivation behind Runes was to improve upon BRC-20.
Runes launched at the same time as the April 20, 2024 Bitcoin halving event, at network block 840,000.
What makes Runes better than BRC-20?
Runes aligns more closely than BRC-20 with the Bitcoin community’s values and unwritten rules, like protocol simplicity, independence of off-chain data, and using unspent transaction outputs (UTXOs) as a state model. Runes also uses a smaller blockchain footprint, thus avoiding the perception that it is filling up the Bitcoin blockchain with “garbage” data.
In contrast to the complexity of BRC-20, the simple rules of Runes tokens allow the tokens to be included in many wallets, requiring only relatively minor modifications by wallet developers.
If you are interested in learning more about how the Runes protocol works, you can read more about it in the Ordinals documentation.
Why do Runes have such long names?
Runes have a unique, forward-looking characteristic of ticker naming: shorter names for individual Runes will be unlocked (allowed) over time. This rule is intended to prevent a rush of front-running and "squatting" more attractive, shorter names. At first, only Rune names of thirteen or more characters are unlocked, which is why (depending on when you read this article) you might only see Runes with long names avaliable for mint and sale. An example of an early Rune name is "UNCOMMONGOODS." How quickly are shorter names unlocked? Runes was unlocked at block 840,000, and after that, the completion of every 17,500 blocks (which takes about four months) unlocks the next-smaller length of Rune name availability.
What will Runes be used for?
Initially, we will inevitably see a lot of meme Runes traded, since they are so simple to create. There are more "serious" Runes projects in the works, but it’s hard to predict which will be successful, and when more value-added Runes-based projects will be available.
What are some popular Bitcoin Rune projects?
You can follow along with which Runes projects are new and most popular at several online Runes explorers, including Ordiscan.
How can you mint, buy, and sell Runes?
Platforms like Ordinalbots can make the process of "etching" and minting Runes simple. "Etching" sets the properties of Runes, and “minting” creates new ones that may then be transferred.
Trading platforms like Magic Eden already support Runes purchases and sales. OKX is another.
Always do your own research and/or consult with a professional if you're unsure about anything.
How do you use a wallet to back up and protect your Runes?
Runes-capable wallets operate like other crypto wallets. To buy some Runes and back them up:
- Create an account, secure your seed phrase backup, and deposit funds into your choice of Runes-capable wallet.
- Create or purchase Bitcoin Runes on your platform of choice.
- Use a Runes-compatible Receive address in your wallet to receive the Bitcoin Runes from the marketplace or trading platform you've chosen.
How do you ensure inheritance of Bitcoin Runes?
You must protect your long-term storage and the inheritance of Bitcoin Runes in the same way as you would any other Web3 digital asset.
Web3 asset inheritance is different from the relatively straightforward steps for a traditional inheritance, where you go to the bank or the broker, you tell them that someone has passed on or is incapacitated, and you are given access to those assets. In contrast, with Web3 assets, you, the owner, are responsible for the security and safekeeping of those assets. If you haven't recorded all of the details about your assets and communicated them to the people who will be the beneficiaries, your assets will likely be lost. Even if you did record the details correctly, there are still a lot of ways for heirs to go wrong with complex technical things during the succession process.
Take the risk out of your web3 and Bitcoin asset wallet backups by storing your wallet seed phrases in a specialized digital vault.
How can Vault12 Guard protect your Bitcoin Runes?
Our latest technology release Vault12 Guard is a mobile app designed for ordinary people who are collectors, Web3 creators, and crypto enthusiasts buying cryptocurrency. Vault12 Guard is designed to make it as simple as possible to back up all of your digital assets and then assign a beneficiary who can receive those assets in the event of incapacitation or death.
With Vault12 Guard, it's very simple to back things up for your own wallet recovery. It's very simple to activate Inheritance. And it's very simple for your heirs to retrieve those assets when needed. Download the app from any of the app stores (iOS or Android), install it, and create a digital vault. You can immediately start adding assets, which will be stored locally on your phone device for full, distributed, decentralized backup and inheritance.
With Vault12 Guard, you can add and assign your own vault Heirs and Guardians. These are people that you know: they could be business partners, family members, or friends who will guard your vault. Your Guardians will grant access to your Web3 assets on the event of your passing.
You can learn more about Crypto Inheritance here, or jump right into learning how to quickly set up your vault to bring longevity and resilience to your digital assets journey.
How to Self-Custody, Back Up, and Inherit NFTs with Vault12
TL;DR
An NFT ("Niftie") is a blockchain token that is associated with a specific physical or digital asset that has a unique form and value. In contrast, cryptocurrencies such as BTC, ETH, or other altcoins are interchangeable with others of the same type (for example, 1 bitcoin (BTC) = any other BTC).
NFTs can be linked to unique physical assets, e.g., a diamond, a piece of physical art, a digital asset like an online concert ticket, or digital art.
NFTs can be tracked on a blockchain as they are transferred or sold to other people. As an added twist, NFTs can even be programmed so that when they are sold on the secondary market, a portion of the proceeds are automatically sent to the creator, thus creating a whole new motivational value chain for the creator economy.
NFT functionality is still in its infancy, but has the potential to fundamentally change how all types of assets are traded.
You should protect the NFTs you own by using Vault12 to securely back up the wallet that holds the keys to your NFTs. It is especially important for creators, who may have authored a myriad of NFTs, to protect the keys to their NFT wallets, since all proof of ownership revolves around protecting those keys.
What is an NFT?
NFTs, or Non-Fungible Tokens (also known as "Nifties"), are digital assets tracked on a blockchain like any other digital token. The term "non-fungible" means that each token is unique. An NFT and its trading history can be tracked on the blockchain. Unlike Bitcoin, where each BTC is valued the same as any other BTC, NFTs can have different values depending on their attributes, and depending on their unique market demand.
NFTs come in all shapes and sizes, but all of them have two key properties:
- They are linked to actual assets - either physical or digital. Effectively, NFTs express the immutable right of possession. This right is cryptographically fixed in a blockchain as an advanced digital version of a "certificate of ownership."
- They are tracked on the blockchain so that their ownership history can always be verified. This means that not only digital items can be tracked, but physical items that have been tokenized and represented as an NFT can be tracked as well.
This opens a wide range of use cases for NFTs:
Art: Both digital and physical art can be tokenized, traded, and tracked via a blockchain. In a famous example from March 2021, a JPG image produced by digital artist "Beeple" fetched $69 million (lol) in an auction run by famous auction house Christie's. Other high-profile artists, musicians, and creators are creating new art, as well as tokenizing their historical catalogs.
Plane Tickets: Yes, plane tickets (in fact, tickets of all kinds) can be issued, tracked, transferred, and even bought and sold, optionally with a percentage of the ticket price going back to the original issuers.
Baseball Cards: Cards and other collectibles, including limited edition items, can be registered, traded and collected.
Real-world physical assets: Real-world valuable assets like diamonds or real estate can also be tokenized, and then traded! As long as there is clear provenance (a known source, or history of ownership) for the physical items, they can easily be traded on a global market, once they are registered as NFTs.
As for the future of NFTs, there are some incredible possibilities for how Smart Contracts will increase the utility of NFTs even more by supplementing them with real-world, dynamic data. Just consider the possibilities for NFTs beyond their usual function (serving as a record of the chain of custody and ownership): GPS location data can show the physical location of an NFT-tokenized object; real or virtual sports outcomes can offer additional token "rewards" to NFT owners; economic data can be used to automatically modify interest rates used for NFT-tokenized mortgage agreements. A dynamic NFT becomes a trackable asset that can be used for various contractual relationships besides just collectible trading.
How are NFTs different from Cryptocurrency?
Most NFTs live on the Ethereum blockchain, although some other blockchains also offer NFT support. Unlike cryptocurrency coins like Ether, which are interchangeable with other coins of the same type (fungible), NFTs are unique (just like snowflakes)! So what gets tracked on the blockchain for any given NFT captures its unique properties, as well as its trading history.
How do I create an NFT?
To create an NFT, first choose a blockchain network. Ethereum has the widest range of NFTs today, but some other blockchains that support NFTs include Binance Smart Chain, Flow by Dapper Labs, Tron, Polkadot, Tezos, Cosmos, and WAX, to name a few. Your choice of NFT blockchain network will determine which exchanges and crypto wallets will interoperate with your NFT.
If you choose to use Ethereum for your NFT, you will need a crypto wallet that supports the associated ERC-721 standard. Examples of these wallets are MetaMask, Trust Wallet, Coinbase Wallet, or Rainbow. In addition, you will need some funds in Ether (ETH). All Ethereum transactions will cost a transaction processing fee (also called a "gas" fee).
The NFT trading platforms that enable you to create NFTs include OpenSea, Rarible, and Mintable. To use these NFT platforms, connect your crypto wallet to the platform, click the "Create" button, upload your digital art or other NFT format, and accept the contract terms and details. Once your NFT is signed with your wallet, your NFT is ready to go and can be listed on the blockchain.
How do I buy an NFT?
There are lots of sources to buy NFTs, and there are more coming online every day. The most popular platforms include:
Here's a livestream of the first-ever authenticated Banksy art burning:
How do I secure, protect, and back up my NFTs?
NFTs are registered on the blockchain and linked to your wallet address, so backing up your NFTs follows the same process as backing up a wallet's seed phrase.
If you own the digital art source file itself (regardless of its format), you can also back this up in a Digital Vault. This ensures that your copy of the art is also protected from being accidentally deleted or lost. This is especially important for NFT art that may happen to pass through many hands (e.g., auction houses), and is also important for insurance purposes.
Read on for step-by-step instructions for how to protect your NFTs and original artwork using Vault12.
How to back up from an NFT Platform
Once a creator or developer has created an asset, it needs to be "minted" on an NFT platform. Minting is the process of registering the asset on the blockchain and activating the smart contract that governs the NFT (e.g., these terms can include what percentage of future sales are credited back to the creator). Once minted, the NFT can be made available for purchase. Buyers will purchase from the NFT platform directly, using their crypto wallet.
NFT Platforms support wallets in different ways. Some wallets can display NFT records, others cannot (we're still in early days of this technology).
In the following example, we will use Opensea.io (a leading NFT platform), and the Metamask mobile wallet:
Opensea.io
Metamask mobile wallet
With NFTs (as with standard cryptocurrency), the wallet seed phrase becomes the most important piece of information to back up and secure.
Here's how to reveal the seed phrase in our Metamask Wallet so that it can be backed up:
1. Settings
2. Security & Privacy
3. Reveal seed phrase
4. Seed phrase displayed
Backing up your Crypto Wallet
Once you have access to your seed phrase, you can back it up with a Digital Vault from Vault12.
In the following sections, we will demonstrate how owners of NFTs, as well as creators, can utilize a Digital Vault as the mechanism to store seed phrases, as well as secure the original asset.
How can NFT Owners Use a Digital Vault to back up NFTs?
A Digital Vault has the advantage of being focused on a singular purpose: securely storing digital assets for long term use. While there are many types of "digital vaults" available for cryptocurrency storage, for NFTs it is better to use something that is independent of any one blockchain and can store any type of digital asset.
Here we will use Vault12 to demonstrate how an NFT can be backed up, and how digital assets can also be stored in a Vault:
Step 2: Add a new asset to your Vault: in this case an NFT. First, switch to the Vault screen by tapping on the vault icon on the bottom navigation pane. Tap Add an Asset, and choose NFTs.
How can you back up your NFT seed phrase in Vault12?
Start by choosing "Add a Seed Phrase" to add your NFT wallet's seed phrase. For convenience, the name of the software wallet type that you use to control the NFT will be suggested, but you can use any name.
Entering the seed phrase could be done by choosing either "Enter each word," or "Free format text." If you want to refresh your memory about the details of seed phrases, you can do that here.
As soon as you finish entering the seed phrase words, choose the name for the asset (or use the one proposed by the application), and choose between storing whether you want to hold the local copy, or only store a backup with your Vault Guardians.
Finally, you will be returned to the Digital Vault screen that will display your added asset and indicate the status of its distribution to your Guardians.
Creators: Use a Digital Vault to back up NFTs and original artwork
For creators, in addition to backing up wallets that contain NFT collections, there's also the option to back up the original artwork itself - this could be the form of an image, video or some other file format.
To add the artwork to your Vault, simply tap the "Add an Asset" option on your Vault screen, then choose "Add Media."
In this simple way, you can add files, images, or other media from files on your device or from your Photo Library to back up the source files of your highly valuable media.
The final step is to give a name to your selected asset (you can associate it with the seed phrase name, to ease tracking of inventory), and choose whether you want to keep a local copy.
How to unlock and access assets in the Vault?
To gain access to your asset or artwork, select the asset in your Vault, and tap the "Unlock Asset" option.
To learn more about accessing the assets that are locked in your Vault, please read How to access your Seed Phrase or asset stored in Vault12.
The NFT market is new and constantly evolving, and there have already been hacking attempts on several platforms where owners and creators ended up having their accounts drained. Please make sure that you are using well-known and highly trusted wallets to associate with your collection of NFTs. Follow the guidelines laid out in this article to make sure you are able to robustly secure and back up your NFTs - whether you bought them or created them yourself.
Backup
Vault12 Guard provides inheritance, and secure decentralized backup of seed phrases and/or private keys, giving Bitcoin (BTC), Ethereum (ETH).
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How to securely destroy your paper seed phrase backup.
TL;DR (concentrated takeaways)
You should not keep any temporary paper copies of your crypto wallet seed phrase.
The Vault12 Digital Vault is perfect for permanently and safely storing your seed phrase backup.
Disposing of your temporary paper seed phrase is easy, but the details are very important.
You could dispose of it by burning it in your kitchen, and then flushing the ashes.
You could dispose of it by erasing, shredding, and then flushing the pieces.
Remember that your wallet seed phrase allows access to your crypto
By now, you know that your crypto wallet seed phrase is the most important thing to protect in order to guard your crypto assets. You have read about the need to use randomness to generate your seed phrase, and then how important it is to back it up to ensure that it is not lost or stolen. In this article, we will assume that you have already decided on which wallet to use, how to generate your seed phrase, and how to back it up. With your wallet set up and your seed phrase safely and permanently backed up, now you find yourself with a piece of paper that holds a "spare copy" of your seed phrase scrawled on it. How should you dispose of that precious piece of paper?
Why would you have a paper copy of your seed phrase?
You probably ended up with that piece of paper containing your seed phrase as a result of your seed phrase generation and/or wallet setup steps. Until you are sure that your wallet configuration is complete, and your permanent seed phrase backup is complete, you likely wrote down your seed phrase on paper along the way.
If you generated your seed words incrementally with dice, you likely calculated them one by one, capturing each one on paper after it was chosen.
Similarly, if you let a crypto wallet choose your seed phrase for you, you likely wrote it down in order to confirm the words back to the wallet during the configuration process. In any case, you probably did not transcribe each word directly into permanent storage the instant that it was generated - you wrote it down offline, on paper, in order to have a copy to use to help you complete the steps of saving it to its permanent storage medium. Then you saved your seed phrase to a permanent medium such as your Vault12 Digital Vault, a steel card, or a limited-access, backed-up encrypted file. You might even have chosen to use two of those forms of secure, permanent backup.
Congratulations! But now you also have this extra piece of paper that you don't need - and it would be silly to leave it lying around waiting to be stolen, or to just throw it into your trash can.
Planning to destroy your temporary seed phrase copy
You need a foolproof way to destroy the now-unnecessary, temporary paper copy of your wallet seed phase, such that it can never be reconstructed. Here are some things to keep in mind as you plan to destroy it:
- Don't put the task off. If you do not keep the temporary copy in a high-security safe until it is destroyed, every moment that it remains readable holds some risk that you could misplace it, or that it could be otherwise accessed. Properly disposing of it is not hard to do, and it does not take long - finish the task.
- Meanwhile, be aware of cameras that could record the seed phase from the paper. Your smartphone, laptop, tablet, or security camera could all capture an image of your seed phrase without your realizing it. We have all become so accustomed to cameras around us all of the time, especially when they are part of our home security system, that we lose our awareness of what is being recorded. Don't take the chance of accidental image capture.
- If you wrote down the seed phrase on a pad of paper, ensure that the page below the one that you wrote on does not have impressions that could be used to detect and reconstruct the words. Tap into your spy novel knowledge to imagine that possibility! If necessary, destroy the page underneath as well to remove all traces.
- Be absolutely sure that you did not make any errors in backing up your seed phrase to permanent storage.
Now you are ready.
Option #1: Destroy your seed phrase copy with fire and water
For all activities related to fire, you should of course carefully take appropriate safety precautions.
It is possible to burn your seed phrase outdoors, but we recommend doing it indoors, since indoor space is more controllable. (Outdoors, you may be more conspicuous, the paper could blow away partially-burned, or worst of all, you could accidentally start a larger fire.)
Indoors, you have a ready-made seed phrase burning area: your kitchen stove. When you are ready:
- Just in case, know where your fire extinguisher is located!
- Survey the area around the stove to ensure that there is nothing flammable.
- Turn on the ventilation fan near your stove to prevent setting off the smoke detector.
- Have a lighter handy.
- Put a metal pan that you will use to contain the burning paper onto the stove.
- Fold your seed phrase paper in half so that it makes a V-shaped "tent."
- Place the folded paper into the pan, pointy side up (as an upside-down "V") - this will allow oxygen to circulate underneath it for a complete burn.
- Carefully light the paper on fire, and wait for the flame to completely consume it.
- Wait for the paper to cool. Crumble the ashes.
- Flush the ashes down the toilet to avoid any chance of reassembly.
Option #2: Destroy your seed phrase copy by shredding and flushing
To destroy your paper seed phrase without fire:
- First, if the words are written with pencil, completely erase them.
- Shred the paper into extremely small pieces, such that even if any letters could still be read, no more than one letter would be shown on any piece. (This could be done using your hands, scissors, or a shredding machine.)
- Flush the shredded pieces down the toilet to avoid any chance of their reassembly.
Your Vault12 Digital Vault is secure and convenient for your seed phrase backup
It is a good feeling to know that your seed phrase is safe and secure without having to keep paper copies lying around. Your Vault12 Digital Vault is the perfect place to store your sensitive digital assets including your seed phrase. Congratulations on being an informed, responsible holder of your own crypto assets.
How to back up your seed phrase on Cryptosteel.
TL;DR (concentrated takeaways)
Backing up your seed phrase to steel plates offers a robust solution that is subject to only a few threats.
Don't give a steel plate vendor your seed phrase to stamp or engrave for you! This is a "DIY" task.
Once created, protect it well from discovery and theft.
Some options are Cryptosteel, Ledger CryptoSteel Capsule, Crypto Key Stack and Hodlinox (engraveable options), ColdTi (titanium), and Billfodl.
When it comes to a decision about how to back up your seed phrase, you have to consider your personal circumstances, and weigh the pros and cons of the many options that exist.
For offline, long-term, cold storage backups, utilizing steel is one of the most secure options. Steel requires no software, is nearly indestructible, and the backup process is completely manual and offline. Furthermore, the steel devices that are on the market today don't look like a seed phrase backup to those not already familiar with crypto seed phrases - this offers a degree of "security through obscurity" that could deter a common thief. (However, you should not rely on that protection! Always keep your backup in a safe or lockbox.)
Steel backups exist in a variety of formats. If you are handy with metalworking, you could even create a steel backup yourself. This review showcases Cryptosteel, which is produced from the original blueprints of the open-source Cryptosteel steel backup solution that was the first metal backup solution on the market. Cryptosteel sells its original model as the Cassette and has since added a Capsule version. Since the blueprint is open-source, the "cassette-type" steel wallet backup solution may be available from a variety of providers. If you consider several different steel backup solutions, consider the quality of each before making a purchase, since the place of manufacture, the grade of steel, and other characteristics may vary.
How is the seed phrase recorded onto the card?
A few companies offer ready-made steel plates, and all you have to do is input your seed phrase onto the steel. Different companies offer different ways of doing this, from sliding metal tiles into locking slots, to engraving, or using a metal punch. If you are handy and have the tools, you can even make a steel plate backup yourself.
There are 2 rules that you must follow if you are considering using metal plates as a backup:
1. Simplicity is the win-win! Some solutions are way too complicated. Fewer pieces = less chance for failure.
2. You should never ever provide the card manufacturer with your private key or seed phrase for "engraving" or whatever process they use. Unfortunately, some reckless manufacturers expose their customers to this severe risk ... pease keep your seed phrase safe by avoiding them.
What risks are steel cards still subject to?
Backing up to a steel plate is great - but don't forget about the importance of keeping that plate in a safe location. There is no "data security" layer present on a steel plate, so it becomes critical to implement steps to prevent unauthorized people from accessing the seed phrase or steel plate.
- Consider encrypting your seed phrase before committing it to steel - that way if the plate is exposed, you still have a layer of protection.
- Keep it in a safe place! If the plate is exposed, then your seed phrase is exposed, and you become at risk of your funds being drained.
Why protect Your Seed Phrase?
In the world of cryptocurrency, you are your own bank, and with great power comes great responsibility. Public blockchain cryptocurrencies are run on open, permissionless systems, where transactions are irreversible. There is no credit card company or bank to call and dispute the charges.
Your seed phrase provides full access to your wallet, and because of this, protecting your seed phrase is critically important. You can think of your seed phrase as equivalent in legacy finance to someone having all of your online banking information. Anyone with your seed phrase can access your wallet, just as anyone with your online banking information can log in to your banking account.
Protecting/backing up your seed phrase serves two purposes: First, it backs up your Wallet, allowing you to reconstruct your wallets in cases of device failure, new devices, etc. Second, it secures your Wallet by preventing bad actors from gaining access to your seed phrase, which would allow them to steal funds.
What is the Cryptosteel
Cryptosteel was the first steel seed phrase backup solution on the market. The concept was developed in 2013, and the blueprints were later released as open-source software. The rectangle block resembles a cassette deck, as suggested by its model name "The Cassette." The frame is a little bigger than a credit card and will fit easily into your pocket (although the pocket is a poor choice of locations for safekeeping).
The purpose of steel backup solutions like Cryptosteel is to safeguard your seed phrase from extreme scenarios. The Cryptosteel Capsule will survive fire up to 1400C/2500F degrees, and the Cryptosteel Cassette up to 1200C/2100F. (For reference, a house fire is around 600C/1100F degrees.) It will survive physical damage from flooding, electric shock, corrosion, magnetic shockwaves, and extreme pressure.
The form of the device does not appear to the untrained eye as a seed phrase backup solution - it appears simply as a block of metal. However, someone who is familiar with the devices will recognize what it is. After you have backed up your seed phrase, choose a proper location for storage, such as a safe or a lockbox.
The device is made from 100% AISI 304 grade stainless steel - the Capsule form also incorporates AISI 303 grade steel - and the company says that it can go undetected by many scanners and metal detectors. Since tech is always advancing, this is not a safe long-term reliance if your objective is stealth and your threat profile involves entities searching your house with metal detectors. If this is the case, embed the device onto a stainless steel object, preferably inside a wall, and your Cryptosteel will become masked and invisible to metal detectors.
How to use the Cryptosteel
When you first open the Cryptosteel, you will notice that the instructions are printed on the inside top of the cardboard box, along with pictures for each step. The device and the engraved steel tiles are neatly embedded into cushions.
0. Cryptosteel Unboxing
Cryptosteel unboxing
Remove the Cryptosteel device from the box, and the plastic container holding the engraved steel tiles. Printed on the box, underneath the plastic container, is an outline that maps out where each letter can be found in the plastic container. Each box shows 2 letters because the engraved steel tiles have one letter on each side.
Do you notice the elongated box in the middle, with numbers and symbols? BIP39 seed phrases do not contain numbers and symbols, but BIP39 does support adding a passphrase to the end of your seed phrase: this is sometimes referred to as the 13th or 25th word. However, the steel wallet only has 24-word options to fill, so if you have a 25th word, it won't fit. If you have a 12-word seed phrase, it will fit.
Cryptosteel outline and steel tiles
Cryptosteel device
1. Setup Cryptosteel
Now that you are familiar with the device and have had a chance to look everything over, let's back up your seed phrase.
Step #1 - "Open the case by sliding upper and lower containers like a fan."
When you first hold your Cryptosteel, the device frame is closed and locked, and it appears as a rectangular block of steel. To back up your seed phrase, first, you need to open the device.
To open the device easily, place your fingers near the top of the device, and slide each side in opposite directions.
Identify the top of the Cryptosteel by looking for the side that has a thin rectangular opening, which separates the two blocks of metal. In contrast, the bottom of the device will be completely closed and solid.
You shouldn't have to push too hard to open the Cryptosteel. If you are pushing hard, you are likely pushing near the bottom of the device.
Opening Cryptosteel
2. Unlock the frame by turning the screw counter-clockwise
Now that the Cryptosteel is opened, notice that the device frame is actually 2 plates of steel, with each steel plate holding 12 words, so that you can store your seed phrase.
The way that you store your seed phrase is by sliding engraved steel tiles into the Cryptosteel and then locking it. By default, the device comes locked. To unlock it, you will need to use a flathead screwdriver, or something similar, to turn a screw counter-clockwise. In our testing, we were also able to use a credit card and a fingernail to turn the screw.
It is easy to identify the screw, because it is the only screw on the device that has an opening to be turned. If you lay the Cryptosteel horizontal, the screw is on the top right.
Unlocking the Cryptosteel
3. Release the safety lever by pressing inside the long slot with a small tool.
Before you can open the frame, you need to release the safety lever. The safety lever prevents you from accidentally opening the frame and having your steel tiles fall out.
To identify the safety lever, look for the thin rectangular opening with a small half-oval inside of it. On the 1-12 word side, it is underneath word 12. On the 13-24 word side, it is underneath word 24.
To release the safety lever, you need to push out the metal piece inside the long slot. It's possible to push it out using your finger, but it's much easier to use something like a screwdriver or similar object.
Releasin safety lever
4. Open the frame while safety lever is released
Once the safety lever is released, you can easily open the frame by sliding it open. When the frame is shut, it protects the steel tiles from falling out by keeping them locked in place. After you have opened the frame, you are ready to start placing your seed phrase in the Cryptosteel.
Opening the frame on the Cryptosteel
5. Insert the slots with the first 4 letters of each word
With the frame open, you will be able to slide the engraved steel tiles into the Cryptosteel. Notice the numbers engraved on the device. It is extremely important to follow the correct order! The Cryptosteel has 3 rows, each with 4 words.
Due to the way BIP39 works, you will only need the first 4 letters of each word. This is because each word of the 2,048 word list has unique first 4 letters. If you have a word that only has 3 letters, feel free to use a steel tile from the numbers and symbols box to represent the "extra" space.
Now, it is time to open the plastic case containing your letters, and put them into the Cryptosteel:
- Identify word 1 of your seed phrase, and identify the position of word 1 on the Cryptosteel.
- Gather the engraved steel tiles of the first 4 letters of your word.
- Insert the 1st letter first, position it in the slot, and slide it to the bottom.
- Insert the remaining engraved steel tiles to complete your 4 letters.
- Repeat the process for the rest of your 12 words.
*If you have a seed phrase that has more than 12 words, keep following this guide till the end, and then repeat the same steps for the second steel block that contains words 13-24.*
Sliding the engraved steel tile into the Cryptosteel
First 4 letters of the first word in the Cryptosteel
When you are finished sliding in the steel tiles, this is what it will look like
6. Close the frame and bend the safety lever back inside the slot
Now that all the slots are filled, the next step is to close the frame and close the safety lever. When doing this step, be very careful to keep the Cryptosteel flat and horizontal. If you tilt it too much, it is possible for the steel tiles to slide out!
Before you can close the safety lever, you have to close the frame. Closing the frame is super-simple: just push it back down into place, and it should naturally fall into place without much resistance.
To close the safety lever, you need to push it back inside the slot. This requires a little more resistance than closing the frame. If the safety lever doesn't want to bend back into the slot, just give it a good push.
7. Lock back the frame by turning the screw clockwise
Recall Step 2, when you had to unlock the frame by turning the screw counter-clockwise? This step is the opposite of that: you are going to lock the frame by turning the screw clockwise.
This is what your Cryptosteel will look like once you have locked the frame
8. If you have a seed phrase more than 12 words, repeat these steps for the other side
The Cryptosteel is made up of 2 steel plates, with each steel plate containing 12 words. You have just completed setting up the Cryptosteel for a 12-word backup ... congratulations!
But what if you have an 18, or 24-word seed phrase? If so, repeat these same steps for the 2nd steel plate to back up the remaining words of your seed phrase.
When you are done, slide the 2 steel plates together so they form 1 steel plate. When finished, it will look like this:
The Cryptosteel, closed and locked
The advantages of using Cryptosteel
Using this method to backup your seed phrase provides protection from destruction via disaster. In today's world, you do not need to look far to see natural disasters happening around the world. From Texas freezing over, to fires in California, Cryptosteel ensures that your seed phrase is protected, and comes out completely intact on the other side.
The ideal solution
Cryptosteel is near-perfect as a long-term backup and storage solution. Since the steel wallet is a physical device, storing it in a safe place that is under your control is crucial. The best place to store the Cryptosteel would be in a safe, lockbox, or cleverly hidden - for example, embedded in a steel object.
The Cryptosteel is not without downsides. For starters, recovering your seed phrase requires physically retrieving the device, which could be tricky, depending on your chosen hiding place.
Today, next-generation digital backup solutions are available that utilize military-grade encryption, providing the same level of security as the Cryptosteel, and incorporating high levels of fault-tolerance and ease of access to your backups. You could choose to have the best of all worlds by using the Cryptosteel to provide protection against disaster and destruction, combined with next-generation tools like Vault 12 for your day-to-day use - with the same level of security.
Back up your Seed Phrase or add an asset using Vault12.
There are many ways to back up a seed phrase, and here we will show you how you can use the Vault12 Guard app to back up a seed phrase from your preferred wallet.
To back up a seed phrase using the Vault12 Guard app, you will need to complete the following steps:
- Using the Guard app, create and set up a Digital Vault.
- Add an Asset to your Vault, e.g., "Add Web3 Wallet."
- Using the Web3 Wallet, generate your Seed Phrase.
- Using the Guard app, save the Seed Phrase or backup code into your Vault.
Confirm your Digital Vault setup
In order to back up a seed phrase, you must have a working Digital Vault. If you have not created a Digital Vault and assigned Guardians to protect it, you can easily do that by following these instructions first.
After you have created a Vault, from the Guard app's Home screen, add an asset to your vault by tapping on "Add a Web3 Wallet."
Add an Asset to your Digital Vault
Alternatively, you could start from the app's "My Vault" screen, by tapping the Add an Asset button, or the [ + ] button in the upper right corner, and then choosing Web3 Wallet.
Choose your Wallet type
On the next screen, you will be able to choose the wallet vendor you are backing up from (or which you plan to use). By identifying the wallet vendor, it is easy for you to distinguish multiple seed phrases and private keys that you may accumulate in your Vault in the future.
When you select a wallet type, you can choose from all major vendors of software and hardware wallets.
Choose a display format for your Seed Phrase backup
Now, you need to select the format in which you want to store your seed phrase - word-by-word or free-text format. The 'Enter each word" option presents the words in your seed phrase as a formatted list. The "Free-form text" option allows you to enter your seed words in whatever way you choose.
There are also Advanced options in case you want to securely generate a new seed with the Vault12 Guard app, or import your seed backup as a file or as a photo of your paper backup.
Prepare to add a Seed Phrase to your Vault
Create or open your Web3 wallet, and display your seed phrase. Often, right after you set up your wallet, it will ask you to back up your Seed Phrase - this is the best time to add it to your Vault. Confirm how many words your seed phrase contains (for example, 12), and select that option in the Vault12 app.
Carefully enter your Seed Phrase into your Vault
Carefully enter your Seed Phrase into your Vault, word by word, in order, until all words have been entered. You can copy/paste the whole seed phrase if your wallet provides such an option. Be sure to double-check your entry against what you see in your wallet. (You may even want to triple-check! )"Enter each word" option
"Enter each word" option"Free-form text" option
"Free-form text" optionName your Asset, and store it in your Vault
Once you have entered all of the words and clicked the "Done" and "Continue" buttons, you have the option to give your Wallet's Asset a unique name (otherwise it will be stored with the name of the Wallet vendor chosen before).
Also, if you already set up the Guardians for your Vault, there will be a choice between creating an Asset Backup using your Guardians only, or "Guardian Backup + local copy" of the Asset too. Having a local copy might be convenient in case you need regular and prompt access to this seed phrase, however choosing "Guardian Backup only" is more appropriate for cold storage and higher security needs.
Finally, press the "Add to Vault" button, to store the Asset.
Your Vault distributes a Backup of your Asset to your Guardians
After you tap "Add to Vault," the app will bring you to the main "My Vault" screen, showing you the newly added Asset. You can check the status of the backup by tapping on the Asset.
After the seed phrase is stored in your Vault, it will be encrypted, split, and distributed to your Guardians (if you already set up the Guardians for your Vault). In case you choose not to store a local copy, the asset will be locked after distribution to Guardians is complete.
"My Vault" with added Asset
"My Vault" with added AssetAsset Details: Backup status
"Asset Details" and backup distribution statusAccess and unlock Seed Phrase Asset
By default, your Asset will remain locked. To unlock and access your Seed Phrase, check out this article.
Once unlocked, your Asset's Seed Phrase will be temporarily displayed so that you can enter it into a new wallet.
Note: The asset will automatically lock after 2 hours.
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How-Tos
Articles on crypto security how to's e.g how to secure, back up, and inherit all your cryptoassets such as Bitcoin, Ethereum, crypto, private keys, seed phrases, NFTs, digital art, DAOs, and DeFi tokens.
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How to access your Seed Phrase or asset stored in Vault12.
There are many ways to generate and back up seed phrases, and a superb choice is to use Vault12 Guard.
If you used Vault12 Guard to back up your seed phrase, this guide describes how you can access that seed phrase by unlocking your asset.
To access a seed phrase that you have stored in your Vault, you will follow these steps:
- Confirm that your seed phrase is backed up in your Vault, and that your Guardians are active.
- In the Vault12 Guard app, request that the asset be Unlocked.
- Wait for Guardians to confirm your request.
- View the asset.
1. How to confirm your Digital Vault setup?
In order to access your seed phrase or backup code that has been stored in your Vault, first check that you have a working Vault in your Vault12 Guard app, and that your Guardians are available. In general, it is a recommended practice to do a Vault "health check" regularly.
If you don't have a Vault because you changed phones, then you can recover your entire Vault - see instructions for Vault recovery. After recovery, your Vault and its stored assets will again exist on your phone, and you can proceed with these instructions to unlock the stored seed phrase or other asset.
If you have not created a Digital Vault and assigned Guardians to protect it, please follow these instructions (since you did not have a Digital Vault, the new Vault created will be empty).
Are your Guardians active?
Once you have confirmed that your assets are stored in the Vault installed on your phone, ensure that your Vault Guardians are available. You can do this by switching to the "My Guardian" tab from the bottom navigation pane. If all of your Guardians are shown as active, you can proceed to request an Unlock.
If not enough of your Guardians are shown as active, you may want to call your inactive Guardians in advance and ask them to open the Vault12 Guard app on their phone, to refresh the encrypted connection between your apps.
2. How to use Guard to request that your asset be Unlocked?
First, jump to the Vault section of your Guard app by using the bottom navigation pane.
On the "My Vault" screen, you will see your asset inventory, with the current state of each asset shown below its name. As you can see, there may be a variety of different states for the same asset:
- Blue icon - asset has a local copy on the device
- Grey icon - asset only saved with Guardians
- Recovering badge - the asset is requested for Unlock, and Guardians' responses are pending.
- Recovered badge - the asset was unlocked by Guardians, and a local copy is temporarily available.
- Sent to Guardians badge - the newly-created asset is in the process of backup and distribution to Guardians.
To Unlock an asset, choose the asset that you wish to unlock from the inventory list, and tap to open the Asset Details screen.
Then click on the "Recover from Guardians" button.
In the image above, there are two assets in a locked state (with grey icons). Let's unlock one of them (Metamask-wallet.txt) for illustrative purposes.
How do Guardians confirm recovery requests?
When the "Recover from Guardians" button is pressed, all of your Guardians will be notified with your Vault unlock request.
You have significant privacy even from your Guardians, since none of your Guardians can see which assets you are accessing. Your Guardians only see that you requested them to identify you, and they are asked to confirm that you made such a request.
Guardian's in-app notification of your request
As the Vault owner, to see the progress of Guardians' responses, and of your overall recovery request, tap "View Status" in your Vault app.
How do Guardians approve your recovery of the asset?
Here you can see all the details of the Guardians' confirmations progress and the recovery:
- The total number of Guardians requested (by default 3)
- Number of confirmations you need to receive from Guardians to recover (by default 2)
- Guardians' names, and status of their responses.
How to view the recovered seed phrase?
As soon as you have been positively identified by the required number of Guardians, and they confirmed your restore request, your asset will be recovered and available for you to view. You can then tap on "View Recovered Asset" to interact with it. Be careful not to expose your asset unintentionally to observers or cameras!
Do not hesitate to learn more about how to maintain your crypto safely and easily at SecureMyCrypto.org.
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How to Protect Yourself From Impersonators on Telegram
If you do not want to be taken advantage of by scammers, please remember:
- None of the Vault12 team members will ever ask you for money or cryptocurrencies. You should NEVER transfer any to them. We will never ask for you to send your contributions to a wallet address that we provide on Telegram. All crypto transfers related to Vault12 are found in your Vault12 app.
- If it seems too good to be true, it probably is.
- Never give out your personal details, even email addresses on the Telegram chat. If an admin gets in touch with you via a private message, make sure their username (listed below) is correct before engaging in any discussion.
- See this in-depth investigation by the New York Times into Telegram security.
1. Check Your Telegram Privacy Settings
Telegram gives users a number of privacy settings to control information being accessed, e.g. your telephone number. Make sure you've reviewed the settings to hide information that doesn't belong in public.
Telegram Privacy and Security Settings
2. Identify admins
Check if they have "admin" titles beside their names on the Telegram channel member list.
To see the member list, just click on "members" or "info".
Look for the admin or owner tag
3. Check member @usernames to determine if you are talking to the right person
You may get messages from scammers pretending to be team members with their exact same photo/avatar and a very similar username. Please report those accounts to TG so that they get banned.
Just click on the photo/avatar of the person you are talking to, to check their username and compare this with our list of admin usernames:
Official Vault12 team members:
@wasima
@max_vault12
@commagere
@pavlo1
@anastasiapopova
4. SIM Swapping - Another potential attack risk
The other common attack is via a SIM swap, this is where your phone number is ported to another device, followed by account password resets — the recovery codes now being under the control of the criminal. To guard against this you need to implement 2FA with an app such as Authy, and to have your carrier explicitly forbidden to do number ports to new devices without verifying identity. Please see this article for more details: https://www.wired.com/story/sim-swap-attack-defend-phone/
5. Remember these two things
* Do not transfer your funds to addresses received in private messages
* Block and report any suspicious behavior and spam messages — this will help Telegram remove these impersonators.
Join Us on official channels for current updates
Team: https://vault12.com/team
Blog: https://vault12.com/blog
Twitter: https://twitter.com/_Vault12_
Website: https://vault12.com
White Paper: https://bit.ly/vault12-whitepaper
Announcement Channel: https://t.me/Vault12official
Support Channel: https://t.me/Vault12
Wallet Guides
Articles on crypto security how to's e.g how to secure, back up, and inherit all your cryptoassets such as Bitcoin, Ethereum, crypto, private keys, seed phrases, NFTs, digital art, DAOs, and DeFi tokens. Start here to learn the basics about security risks in Web3, and where to learn more about keeping your cryptoassets secure.
View all articlesLedger vs Trezor: Which Hardware Wallet is Best in 2025?
Ledger Nano X
- Bluetooth connectivity — works with or without a cable (at least with smartphones).
- Wider interoperability with wallets, coins, and apps.
- Compact. User input is via buttons, not touchscreen.
- Has Secure Element.
- Price Point: Reasonable.
Trezor Model T
- No Bluetooth connectivity. iOS app is view-only.
- Smaller set of wallets, coins, and apps.
- The touchscreen and input are very well-thought-out experiences.
- Missing Secure Element.
- Price Point: About the same.
Ledger Nano X vs Trezor Model T
Ledger Nano X
- Bluetooth connectivity — works with or without a cable (at least with smartphones).
- Wider interoperability with wallets, coins, and apps.
- Compact. User input is via buttons, not touchscreen.
- Has Secure Element.
- Price Point: Reasonable.
Trezor Safe 5
- No Bluetooth connectivity. iOS app is view-only.
- Smaller set of wallets, coins, and apps.
- The touchscreen and input are very well-thought-out experiences.
- Has Secure Element.
- Price Point: About the same.
Ledger Nano X vs Trezor Safe 5
Comparison of Ledger Stax and Trezor Safe 5
Ledger Stax
- Bluetooth connectivity — works with or without a cable (at least with smartphones).
- Wider interoperability with wallets, coins, and apps.
- Posh design with according price level.
- Has Secure Element.
- Large but potentially irritating display.
Trezor Safe 5
- No Bluetooth connectivity. iOS app is view-only.
- Smaller set of wallets, coins, and apps.
- The touchscreen and input are very well-thought-out experiences.
- Has Secure Element.
- Price Point: About half of Ledger Stax.
Ledger Stax vs Trezor Safe 5
Comparison of Ledger Stax and Trezor Model T
Ledger Stax
- Bluetooth connectivity — works with or without a cable (at least with smartphones).
- Wider interoperability with wallets, coins, and apps.
- Posh design with according price level.
- Has Secure Element.
- Large but potentially irritating display.
Trezor Model T
- No Bluetooth connectivity. iOS app is view-only.
- Smaller set of wallets, coins, and apps.
- The touchscreen and input are very well-thought-out experiences.
- Missing Secure Element.
- Price Point: About half of Ledger Stax.
Ledger Stax vs Trezor Model T
More comparisons coming soon...
Missing comparison for any model not mentioned?
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 secure method 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.
Comparison of Ledger Nano X and Trezor Safe 5
When choosing the best hardware wallet for cryptocurrency security, you may wonder:
- Which is better, the Ledger Nano X or the Trezor Safe 5?
- 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 handle Crypto Inheritance Management?
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 methods.
Additionally, we’ll explore the fundamental topic of inheritance and backup for crypto assets — a crucial aspect of long-term planning. By the end of this comparison, you’ll clearly understand which wallet is right for you, and how to address the often-overlooked safety issue of recovering your crypto assets in case of loss.
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
Trezor Safe 5 wallet and desktop softwareLedger 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.
Trezor Safe 5 Disadvantages:
- No wireless connectivity: you always have to use a cable.
- iOS integration is a view-only, you can only watch balance and can't send transactions from iOS app.
Trezor Safe 5 Advantages:
- The display is convenient to work with on a regular basis, and easy to read.
- The touchscreen and input are very well-thought-out experiences on Trezor Safe 5 — you can use it without any discomfort.
Ledger Nano X with Smartphone UXHow do these wallets' security features compare?
Now, we dive deeper into the core specification of every hardware wallet: security features.
| Ledger Nano X | Trezor Safe 5 | |
| PIN-code | 4 - 8 digits | up to 50 digits |
| BIP39 Passphrase | Yes | Yes |
| Open-source | Partial | Full |
| Secure Element | Yes | Yes, and it's NDA-free |
| Multisignature | Yes | Yes |
Crypto wallet security feature differentiators
Ledger Nano X 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 Nano X 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).
Trezor Safe 5 Disadvantages:
- The hardware and software are not not fully open-source, but Trezor mitigates this limitation architecturally, so that the seed phrase is not touched by closed source software. The Secure Element chip is responsible for secure boot only, and it is NDA-free: Trezor is not bound by Non-Disclosure Agreements (NDAs) that would restrict them from publicly disclosing any security flaws.
Trezor Safe 5 Advantages:
- With its new flagship product, Trezor raises the security bar by incorporating Secure Elements into their products. Further, its Secure Element chips are NDA-free.
- 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. Let's review the history of hacks for the manufacturers, which is more representative than for individual models.
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 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.
What happens if your wallet is lost or stolen?
Security is essential, but in the world of crypto, the degree to which backup and recovery solutions are foolproof for users is equally important. Here are the backup and recovery options for these two wallets:
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; 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.
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 complete cloud backup solution).
Trezor Safe 5 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 Safe 5 backup Advantages:
- Trezor does offer a Multishare backup option for those who are able and willing to set it up.
How do these wallets handle Crypto Inheritance Management?
Crypto Inheritance Features
Currently, most hardware wallets, including the Ledger Nano X and Trezor Safe 5, 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.
Summary of Ledger Nano X and Trezor Safe 5 Comparison
The Ledger Nano X and Trezor Safe 5 both provide a variety of security measures, and support a broad spectrum of cryptocurrencies, making them suitable for diverse crypto portfolios.
The Ledger Nano X is more mobile-friendly, and offers a balance of security and convenience features. It offers a small display and uncomfortable input, but with the advantages of a Secure Element and wireless connectivity options like Bluetooth.
On the other hand, the Trezor Safe 5, at the same price, boasts more open-sourced and NDA-free framework, reasonably sized display with colors, and touchscreen interface for enhanced user interaction, but with reduced convenience features working only with USB connections and missing iOS integration.
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 secure method 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 Trezor Safe 5 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.
Ledger Stax and Ledger Nano X Wallets: Which is right for you?
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 Ledger Nano X hardware wallets 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 Ledger Nano X 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. Stax also has a longer battery life (up to 10 hours versus Nano X's 5).
- Premium Design: Its unconventionally large display enhances readability, though it comes with slightly slower responsiveness.
- Price Point: Positioned as a premium product, its cost reflects its advanced features and sleek design.
Ledger Nano X
- Mobile-Centric Usability: Offers Bluetooth connectivity — works with or without a cable, at least with smartphones.
- Design: A bit more compact than Stax. User input is via buttons, not touchscreen.
- Price Point: Not so overpriced.
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 Ledger Nano X?
- 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 Ledger Nano X, 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 and Ledger Nano X both have similar 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; 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, and should be taken into account.
- 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 and Ledger Nano X both have similar 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 entire cloud backup solution).
User holding a mobile phone and using Ledger Stax as FIDO U2F security keyHow 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
Ledger Nano X with Smartphone UXLedger Stax UX 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 UX 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.
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.
- No NFC.
Ledger Nano X Advantages:
- A bit more compact than Stax while also offering 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.
- Not so overpriced.
How do these wallets' security features compare?
Now, we dive deeper into the core specification of every hardware wallet: security features.
| Ledger Stax | Ledger Nano X | |
| PIN-code | 4 - 8 digits | 4 - 8 digits |
| BIP39 Passphrase | Yes | Yes |
| Open-source | Partial | Partial |
| Secure Element | Yes | Yes |
| Multisignature | Yes | Yes |
Crypto wallet security feature differentiators
Ledger Stax and Ledger Nano X both have similar security feature Disadvantages:
- Critical components like the Secure Element and its operating system 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 Stax and Ledger Nano X both have similar security feature 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.
Have there been vulnerabilities or hacks of these wallets?
There have been some vulnerabilities and hacks associated with Ledger products in the past — let's consider their "hack history." While relatively secure, most crypto wallets — even hardware wallets — can not provide perfect security, and 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.
No software is perfect, and no wallet is ideal. However, some designs have been compromised more than others.
Summary of Ledger Stax and Ledger Nano X Comparison
The Ledger Stax and Ledger Nano X 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 more mobile-friendly, and offers a balance of security and convenience features at a very premium price. It offers an unconventionally large display with delayed response, with the advantage of wireless connectivity options like Bluetooth.
On the other hand, the Ledger Nano X, at a lower price point, is still mobile-friendly and offers a balance of security and convenience features. It offers a small display and uncomfortable input, but still has the advantages of a Secure Element and wireless connectivity options like Bluetooth.
The decision between the two will likely hinge on individual preferences for the target user interface with screen, 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. Both the Ledger Stax and Ledger Nano X are compatible with Vault12 Guard Inheritance planning.Vault12 Guard: a decentralized solution for Crypto Inheritance
Vault12 is the pioneer in Crypto Inheritance Management, and delivers an easy-to-use and secure method 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 Ledger Nano X 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.
MetaMask browser extension
Step 1. What is MetaMask?
MetaMask consists of two main parts: a wallet and a web browser. The wallet supports any token compatible with Ethereum, and the web browser is preconfigured for interacting with dapps and smart-contracts.
MetaMask was first released in 2016, as a browser-extension, by ConsenSys - the first company focused on building decentralized tools and infrastructure. Both MetaMask and ConsenSys have played monumental roles in bringing Ethereum to the mainstream.
It is hard to overstate the effect MetaMask has had on the Ethereum ecosystem. By making dapps and smart-contracts simple and intuitive to use, activity on the Ethereum blockchain has enjoyed consistent growth.
Metamask is an open-source wallet, active development happens on github. The wallet has tons of features, and is constantly being updated and improved.
MetaMask is available as a browser-extension for Chrome, Firefox, Brave, and Edge. In September of 2020, MetaMask released a mobile app for iOS and Android.
Step 2. How can you download MetaMask?
MetaMask is installed as a browser-extension. The process of installing MetaMask involves going to the extension/add-on store for your browser and downloading MetaMask.
- The first step is crucial. Navigate to the official MetaMask website. The only valid URL for metamask is https://metamask.io
- Verify the closed lock to the left of the URL. This signifies you are connected through SSL - an encrypted connection. SSL encrypts data in transit and prevents attacks like phishing, and man-in-the-middle attacks.
- If you do not see the closed lock, exit the page immediately.
How can you prevent phishing attacks when you download MetaMask?
- MetaMask is a target for phishing attacks. Phishing is a way of stealing your credentials, by tricking you into downloading a malicious version of the app you want to download. A common tactic for phishers is to purchase domain names of common misspellings - hoping you make a mistake typing the URL.
- Advanced phishers will install an SSL certificate on their phishing site. For extra verification, click on the closed lock, then click on `Certificate` to bring up the certificate details. Verify that the certificate was issued to https://metamask.io - the only valid URL for MetaMask.
How do you go from the MetaMask download page to your browser's extension store?
After you have verified you are on the correct URL - https://metamask.io - click on `Download` in the upper right corner, or `Download Now` in the main section.
- The MetaMask download page contains the official links to download MetaMask from your web browser's extension store. By following or verifying the links from the official MetaMask site, we can prevent phishing.
- On the MetaMask download page, click on your Web Browser's icon to go to the browsers extension store
Which browser extension or Add-On stores can you use to install MetaMask?
- Chrome Web Store - https://chrome.google.com/webstore/detail/metamask/nkbihfbeogaeaoehlefnkodbefgpgknn?hl=en
- Firefox Browser Add-Ons - https://addons.mozilla.org/en-US/firefox/addon/ether-metamask/
- Microsoft Edge Add-Ons - https://microsoftedge.microsoft.com/addons/detail/metamask/ejbalbakoplchlghecdalmeeeajnimhm?hl=en-US
- Brave Browser (Brave Browser is a Chromium-based browser, it sources add-ons from the Chrome Web Store.) - https://chrome.google.com/webstore/detail/metamask/nkbihfbeogaeaoehlefnkodbefgpgknn?hl=en
Follow the official link from MetaMask to your browser's web store, then click `Add to browser`.
Before installing, you will get a pop-up letting you know MetaMask can access and alter data on any website you visit. Let's go over the details
Why does MetaMask need access to your browser's data?
- Since MetaMask works by connecting your web-browser to an application running on the blockchain, MetaMask needs these permissions to form the connection and establish the flow of data between the blockchain and your web browser.
- To maximize security, consider running MetaMask in a browser profile that only consists of MetaMask. This creates a separation between regular browsing activities and MetaMask activities.
- Click on `Add Extension` and MetaMask will finish installing and open a new tab with a welcome screen. Congrats! You just installed MetaMask browser-extension
Good job on safely installing MetaMask. By verifying the authenticity of the MetaMask download, like this guide shows, a whole range of attacks can be prevented. When doing anything in the world of crypto, having a security mindset is so important. Having a security mindset is the best way to prevent loss of funds or a breach of personal information.
Trust, but verify - This means even if a source is trusted, such as an official website or a trusted community member, you should always take the additional steps to verify the information - no matter what.
You are now ready to move on to the next section. Click on `Get Started` on the welcome screen.
Step 3. How can you create and setup a MetaMask wallet?
MetaMask is a very easy wallet to get started with. No email address or personal identification is required. The process consists of two main steps - creating a password and backing up your seed phrase. You will be ready to explore the world of Ethereum in just a few minutes.
MetaMask supports any token built on the Ethereum blockchain. You might come across terms such as ERC-20 and ERC-721; these are just types of tokens.
ERC-20 tokens are fungible; meaning they are like money - each token represents the same value.
ERC-721 are NFT's, non-fungible tokens - where each token represents a unique digital asset - like a collectible.
On the Ethereum Blockchain, there are a couple hundred thousand tokens in existence. MetaMask includes most of the popular tokens by default.
To add a token, simply tap `Add Token` and search for the token. If your token is not listed, select `Add Custom Token` and input the contract address - MetaMask will then pull the info automatically.
Safely backing up your MetaMask wallet is essential. This guide covers in detail how to securely back up your seed phrase in Section 5. Securely back up your seed phrase.
MetaMask uses BIP39 to generate a seed phrase for your wallet. Your seed phrase will cover every token, address, and transaction generated by your wallet. Think of it as your backup master key. Backing up your seed phrase ensures you will always have access to your funds.
When creating a new MetaMask Wallet, the default method is to create your wallet within the app. The more advanced method is to generate your own seed phrase. We created detailed guides on generating your own seed phrase. By following the right directions, you can generate a seed phrase that is more secure than the default method used by wallets.
If you already have a recovery phrase, proceed to Section 6. Initialize or import seed phrase.
Create a New Wallet in MetaMask
In this section, you are going to create a new wallet in the MetaMask browser extension using the wallet's default method. Let's get started.
To create a new wallet with a new recovery phrase in MetaMask:
- Open the MetaMask extension and tap on `Get Started`. This will bring you to the `Wallet Setup` screen
- On the `Wallet Setup` screen you will be presented with 3 options:
- `Import using seed phrase`
- `Create a new wallet` ← This is the one you want to select
Help us improve MetaMask? Before setting up your wallet, MetaMask wants to know if you want to help contribute to MetaMask development by contributing anonymous data. This is a personal decision for you to make based on your own value system. The data MetaMask wants to collect is anonymous clicks and pageviews.
- The first step is to create your password
- Create a secure password! MetaMask does not have 2FA, so creating a secure password is very important
- Make your password unique, do not reuse an old password
- Consider using a passphrase instead, a sequence of 4 or more random words
- Consider using a password generator and manager, like Bitwarden
- Setup a time frame to rotate to a new password
- Learn how to make secure passwords
- Prepare your Seed Phrase for Backup - Backing up your seed phrase is the most important step in creating a wallet. In this step, you will find your seed phrase and prepare it to be backed up. Section 5. Securely back up seed phrase of this guide focuses on how to safely backup your seed phrase.
- MetaMask will first show you your secret backup phrase, called your `Seed Phrase`, grayed out. Click in the box to reveal your seed phrase.
- There are a few options for backing up your seed phrase mentioned here, only one suggested option is secure enough - backing the seed phrase up on an encrypted medium.
- Remind me later ← Never Select this option.
- MetaMask encrypts data on the client-side, this means your seed phrase is the only method of recovering funds.
- Temporarily write your seed phrase on paper ← Only acceptable with additional safety measures
- Please read Section 5. Securely back up seed phrase, multiple additional steps need to be taken to ensure the safety of funds.
- Store seed phrase in password manager ← Never select this option.
- Your seed phrase should be nowhere near the internet.
- Store seed phrase on encrypted medium← The only good option listed
- There are a few different ways you can safely back up your seed phrase. We have done the research and compiled all the ways to do so in Section B of this guide
- To move on to the next step, you will have to write down your 12-word seed phrase. Click in the gray box to reveal your 12-word seed phrase.
Step 4. How can you verify your recovery phrase?
At this point, you will have a fully functioning cryptocurrency wallet that is able to store, send, and receive cryptocurrency. Before you put funds in your wallet, you need to verify and create a backup of your recovery phrase. Your recovery phrase is the only way to restore access to your funds if you lose access to your wallet - backing up your recovery phrase is a very important step. Before moving on to Section B, you need to find out what your recovery phrase is, so you can back it up.
WARNING: When you follow the steps to find your recovery phrase, you will be writing the recovery phrase on a piece of paper. It is very important that you back up the recovery phrase on a more reliable medium, and then destroy that piece of paper. Paper is vulnerable to accidental loss, theft, and damage. It is not the safest method of backing up your recovery phrase.
- Now you need to confirm you accurately prepared your Seed Phrase for backup. MetaMask will display your 12 words in a random order. Starting with the first word, click on each word in the correct order.
- MetaMask encrypts data on the client-side. This means all data is encrypted locally in your web-browser before being transmitted over the internet. If you lose access to your account, MetaMask cannot help you recover your account
- Pay attention to the piece of paper you have written your seed phrase on. Do not leave this paper anywhere where someone else can find it. It is advisable to destroy the paper after you have backed up your seed phrase.
- Congratulations! Your wallet has been created and is ready to be used. You have also prepared your seed phrase for backup. Read over the advice given on the Congratulations screen and click `All Done` when you are ready.
- Get ready to explore the world of Ethereum. Your MetaMask wallet can store, send, and receive any token on the Ethereum blockchain. MetaMask is more than just a wallet - it's your portal to interact with apps and smart-contracts built on Ethereum.
- Before you put funds in your wallet, you need to create a safe backup of your seed phrase. Your seed phrase is the only way to restore access to your funds if you lose access to your wallet.
You are now ready to proceed to Section 5. Securely back up your seed phrase and securely back up your funds.
Recommended Action: After you securely back up your recovery phrase, it is important to destroy the paper you temporarily wrote your recovery phase on.
Step 5. How can you securely back up your seed phrase?
If you used Vault12 to generate your recovery phrase, your recovery phrase is already securely backed up in your digital vault.
Your recovery phrase is the master key to all of your cryptocurrency funds. BRD Wallet uses BIP39, which is the current industry best practice for generating recovery phrases. The majority of modern wallets today use BIP39. This means your MetaMask seed phrase can be used to access your funds across many different wallets.
Securely backing up your recovery phrase is the most important step in creating a new wallet. To emphasize how important this is, consider how someone with your recovery phrase could access your funds without you knowing.
Imagine a bad actor has your recovery phrase, and you have your BRD Wallet locked down with 2FA, IP address whitelisting, blocked tor access, and all the other security features. The attacker could simply open any wallet application, and import your recovery phrase. The attacker now has access to all of your funds.
We want you to have a secure backup, so this never happens to you.
Nine out of ten wallet providers only mention one way to back up your recovery phrase - by writing the recovery phrase on paper. Wallet providers only mention this paper backup method because it is easy for beginners to do. Paper backups are simply not that secure.
We did extensive research and compiled the best ways to back up your recovery phrase. We cover all the most well-known options, including next-generation options like how to back up your recovery phrase in Vault12.
Once you have safely backed up your seed phrase, you can initialize your wallet using any BIP39 compatible wallet. In the next section, you will learn how you can initialize a MetaMask wallet using your seed phrase.
Step 6. How can you Initialize or import your seed phrase?
If you are following this guide from the beginning, and you created your wallet using the default approach, using the app to `Create a Wallet`, then congratulations! You are ready to start using your wallet.
However, be careful about storing large amounts of funds secured only by a wallet-generated recovery phrase.
If you followed one of our guides for pre-generating a more secure seed phrase, for instance using Vault12, and you want to use that seed phrase with your wallet - this section is for you!
In this section, you will learn how to initialize your wallet using only your recovery phrase. There are 3 main reasons to generate your wallet using this method:
- You lost access to your wallet, and you need to regain access to your wallet and your funds.
- You want to access your wallet and funds using a different wallet app.
- You want the best security, and you generated a recovery phrase using an advanced method.
The Metamask Wallet makes the process super easy and user friendly. Let's get started.
In this section you are going to create a new wallet in the MetaMask browser extension by importing your seed phrase. Let's get started.
To create a new wallet with a new recovery phrase in MetaMask:
- Click on the MetaMask extension and tap on `Get Started`. This will launch the wallet setup process.
- On the `Wallet Setup` screen you will be presented with 2 options:
- `Import Wallet`← This is the one you want to select
- `Create a new wallet`
- Help us improve MetaMask? Before setting up your wallet, MetaMask wants to know if you want to help contribute to MetaMask development by contributing anonymous data. This is a personal decision for you to make based on your own value system. The data MetaMask wants to collect is anonymous clicks and pageviews.
- Enter your seed phrase and create a new password.
- Proceed to type in your 12 word recovery phrase. Any typos, misspellings, or typing the words in the incorrect order will invalidate the process and you will have to start over
- Create a secure password! MetaMask does not have 2FA, so creating a secure password is very important
- Make your password unique, do not reuse an old password
- Consider using a passphrase instead, a sequence of 4 or more random words
- Consider using a password generator and manager, like Bitwarden
- Setup a time frame to rotate to a new password
- Congratulations! Your wallet has been created and is ready to be used. Get ready to explore the world of Ethereum. MetaMask is more than just a wallet - it's your portal to interact with apps and smart-contracts built on Ethereum. Your MetaMask wallet can store, send, and receive any token on the Ethereum blockchain.
- Read over the advice given on the Congratulations screen and click `All Done` when you are ready to start using MetaMask.
Recommended Action: do you have a safe backup of your seed phrase? Your seed phrase is the only way to restore access to your funds if you lose access to your wallet. Review Section 5. Securely Backup Seed Phrase of this guide for compiled information on best practices for secure seed phrase backups.
Where can you read more about MetaMask?
In the world of cryptocurrency, knowledge is your best friend.
Crypto Wallet providers will almost always have their own user documentation, and sometimes they may even have a user community where you can ask questions.
Check out these resources about MetaMask Wallets:
Information about best practices on the topic of security can be scattered all over the internet. We work hard to distill the best practices into one place for you.
Check out these resources about securing digital wallets:
- Benefits of using an encrypted digital vault, like Vault12
- How to back up a seed phrase on paper
- All about RNG's - Random Number Generators and why they are important
Ethereum is home to a rapidly growing ecosystem of dApps, smart contracts, communities, and more.
Check out these resources about Ethereum:
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