in

What are the pros and cons of DIY USB wallet vs ledger/trezor hardware wallet?

Ledger has closed source software ..and trezor has its own problems like very limited coin support ..does not support major coins like ada,dot,sol etc

so I thought why not create your own USB wallet ..as described in this link

[https://www.youtube.com/watch?v=B4-fIKroG_M](https://www.youtube.com/watch?v=B4-fIKroG_M)

One risk I can imagine with usb wallet is …when you use the private key to sing the transaction – I guess its exposed to internet vs in hardware wallet it does not leave the wallet …correct?

But am concerned ledger has closed source software …which can be changed my developers of ledger any time which makes them risky? don’t know much how it works.



View Reddit by curiosityvView Source

Leave a Reply

Your email address will not be published.

GIPHY App Key not set. Please check settings

9 Comments

  1. If you’re going to use a USB stick then skip whatever that video seems to be saying and instead make a Tails USB boot stick. It’s easier and with Electurm pre-installed it’s a better choice security wise. Make a good seed backup – that’s critical. Look into metal backups if high enough value. Disconnect from internet and boot on Tails to do any transaction signing. Make a watch-only wallet on your normal desktop for monitoring/receiving. There’s some good tutorials around. I did this method for years but eventually got a Trezor because it’s just simpler and more foolproof.

  2. Pros:

    – it’s cheaper

    Cons:

    – unless you’re generating your wallet seed offline then it can be exposed.

    – Unless you’re using your private keys to sign transactions on a 100% dedicated offline computer. Then it’s can be exposed.

    – Storing backups digitally is a bad idea. USB drives fail. Store your backup seed on paper or fireproof and waterproof metal plates.

  3. I guess its exposed to internet vs in hardware wallet it does not leave the wallet …correct?

    No. You can sign a transaction on an offline air gaped computer that will never ever be put on the internet again. Wallets such as Electrum, Coinb.in , and AGAMA will all do this “cold” signing. As an added benefit there are several tools offline again that let you verify the transaction before you broadcast it online. That way you know exact what your transaction will do even before you broadcast it. Oh and by the way, remember that when you sweep the amount from an address, you must sweep the entire amount and specify a new change address where the change goes.

  4. A DIY USB wallet (like the video you linked) is just a software wallet in a fancy outfit. Not much more secure than running the software wallet on your normal OS. Not as secure as running a software wallet on your phone.

    A hardware wallet like ledger or trezor is a separate CPU for dealing with private keys. No virus or attacker can extract the keys via the computer. No virus or attacker can drive the hardware wallet to make a transaction via the computer.

    If you want to make a DIY hardware wallet checkout the seed signer: [https://seedsigner.com/](https://seedsigner.com/)

  5. > when you use the private key to sing the transaction – I guess its exposed to internet vs in hardware wallet it does not leave the wallet

    I didn’t watch your youtube because youtube makes your brains leak out your ears

    But a DIY cold wallet should not connect to the Internet. Follow a cold wallet protocol to use an on-line watching-only wallet (no keys, only addresses and transaction history) to build an unsigned transaction. Copy the unsigned transaction to the off-line cold wallet which contains the keys. Sign the transaction. Then copy the signed transaction to the on-line computer to broadcast the signed transaction
    See: https://electrum.readthedocs.io/en/latest/coldstorage.html

    That’s a lot of work. Using a hardware wallet does the same processes with less effort because the keys are isolated from the network even if the wallet device is plugged in to a PC

    Otherwise, look at the Cobo wallet. It follows the cold protocol described above by copying the transactions into and out of the device using QR codes

  6. I’ve been bitcoining like this since I started. I have no issues.

    Just know that you should create redundancy and store USB sticks somewhere safe from unforeseen events.

    Encrypt any wallet you store on it and make the file hidden, add photos to help obscure the USB stick’s purpose.

    Last but not least, store one or more in a faraday cage. A little extreme? Maybe, but only until the day comes where it isn’t.

What do you think?

Oleg Tselkov’s NFT 'Head With Legs' To Be Sold As NFT

Oleg Tselkov’s NFT Head with Legs to Be Sold as NFT

maticprice

Polygon-The Sleeping Gaint, MATIC Price To Melt Faces When It Wakes!