Best Practices for Trezor Wallet Security

Introduction

The Trezor Wallet is like a personal safe for your digital coins. It's a hardware wallet that prioritizes security and user-friendliness, making it an ideal choice for storing keys to our digital assets. But, with cyber threats growing more advanced, having a strong security setup is essential for a successful cryptocurrency journey. In this guide, we'll show you the best practices for using a Trezor wallet, providing you with the knowledge and tools you need to navigate the cryptocurrency world securely.  Let's get started!

Best practices for Trezor Hardware Wallet

From setting up our Trezor wallet to participating in a transaction, we need to consider the risks that are involved with hardware wallets and the crypto world. It is always better to be safe than sorry. With this keeping in mind, let's take a look at some best practices that we should follow to be more secure in the crypto world.

1. Purchase Trezor device from official sources only

It is important to take precautions when purchasing a device where you are going to store your assets credentials. It is important to purchase a Trezor device or any other hardware wallet from their official website or authorized resellers. Do not use any third-party applications that provide different types of discounts on the product to attract. It is most likely that the device would be tampered with if it is cheap.

2. Set up the device and Use it in a Secure Environment

Ensure that you are in a secure environment when setting up your Trezor wallet. You should always avoid using public Wi-Fi Networks or Untrusted Computers during wallet setup and even when you are performing some transaction. 

You should always use a private, trusted computer and a secure network whenever crypto is involved.

3.  Use Strong PIN Protection on Trezor devices

A PIN is a powerful tool that acts as a barrier, protecting our account and crypto assets from any unwanted physical access to our device. Setting up a strong PIN is required to protect our device from unauthorized use. You should avoid using a PIN that is easy to guess, like "1234" or "0000". You should also avoid setting your birthdate or year as a PIN, as they are easily predictable if the attacker knows about you.

While setting up a PIN, you can follow some tips like -

• Avoid repeating numbers, as repeating numbers increases the length of the PIN but not the complexity
• Avoid using sequences, as they are usually the first combinations that are tested. Sequences are also easy to guess
• Use as many different numbers as possible to increase the complexity of the PIN. It is recommended to have a PIN of at least 6 to 8 digits.
• Trezor allows us to have a maximum length of 50-digit PIN. Use it wisely

4. Keep your wallet up to date

It is essential to keep the wallet's firmware updated as there are often update releases from the manufacturers to improve the security and functionality of the wallet. Updating your wallet will keep your wallet secure from future threats.

5. Back up your Seed Phrase/ Recovery Phrase

A recovery phrase is also called recovery seed, passphrase, seed phrase, or mnemonic, is an ordered list of English words that contain all information necessary for recovering our wallet.

When you are backing up your recovery phrase, words must be written down in the same order as they appear. Those words are the key to your private and public key, which allows us to access our crypto assets available in our wallet.

It is extremely important to keep the recovery seed private and safe so that the cryptocurrencies are never at any risk. If by any chance we lose access to our Trezor wallet, even then, our account can still be recovered if we have the recovery phrase with us.

Write down your seed phrase (recovery phrase) on a physical medium (like paper) and store it securely in a place separate from your Trezor. Never store your seed phrase digitally or take pictures of it.

6. Enable Passphrase/Hidden wallet feature

 For added security, some wallets allow users to add a passphrase in addition to the PIN. A passphrase is like an extra word added to your recovery seed/recovery phrase.

Using the recovery seed alone grants us access to our Standard wallet, where no passphrase is used. But when we use the passphrase feature effectively, it creates a hidden wallet which is visible only when the passphrase is provided. 

Each unique combination of 'recovery seed + passphrase' grants access to a corresponding unique Hidden wallet

However, we need to use this feature with caution as if we forget the passphrase. There's no way to recover it as they are not stored anywhere on the device.

7. Use Secure Connections

Always use a secure and encrypted network connection (HTTPS) when interacting with your Trezor wallet over the internet. Do not use open and public Wi-Fi Networks. These precautions should be taken as nowadays network hacking is very common, and we need to protect our assets from these attacks.

8.  Use Multiple Accounts on Trezor Suite

If we often transfer crypto between two accounts, it may become obvious that both accounts belong to us. As a result, employing several accounts as an additional privacy option is better suited to expert users. 

Trezor Suite allows us to manage multiple accounts for each supported cryptocurrency. This feature makes it easy to track balances and manage our digital currency's identity. We can utilize multiple accounts, each with a different purpose, to increase the privacy of our transactions. Each account has its extended public key (XPUB) or public receiving address (XPUB) that allows anyone to view all transactions to and from an account; therefore, utilizing several accounts safeguards this sensitive information.

The number of new addresses that may be generated under a single Trezor account is limited to 20.

9. Use a new address for each transaction

The spender and receiver of a transaction each provide to each other the public keys or addresses used in that transaction. This enables any party to utilize the public blockchain to trace previous and future transactions involving the same addresses as the others. 

If a public key is often used, others may naturally trace a person's receiving and spending activities. As a result, identifying the owner of the address is also simple.

It is effective to use a different address for each receiving transaction to increase your privacy.

Trezor Suite generates new addresses for each (receiving) transaction. By creating a new address each time, you reduce the risk of exposing sensitive personal information. As well as protecting your privacy

10. Verify Transactions before approving

Before sending crypto to other accounts, always recheck the recipient's address. This will prevent sending tokens to the wrong address. There are always possibilities of sending tokens to the wrong address, either due to a manual mistake while entering the address or due to a malware activity that can change addresses copied to the clipboard.

You should also verify the transaction details on your hardware wallet's screen before confirming, not just on your computer or smartphone screen.

11. Beware of Phishing attacks

Phishing and vishing are two techniques used by cyber attackers to mislead consumers into disclosing sensitive information. Trezor customers are frequently targeted with fake emails, websites, or phone calls pretending to be from Trezor. Attackers may request that users enter their seed phrase, provide login information, or connect their device to a malicious website.

Using these ways, the attackers acquire the account details and seed phrases from the users and can later transfer all the crypto to their own addresses.

Below are some ways that will help you to be cautious and identify phishing scams and prevent yourself against them

• Watch out for emails from suspicious email addresses.
• Don't click on links or download attachments from unknown sources.
• Use only legitimate and trusted websites and bookmark them for the future.
• Never share or store digital copies of your passphrase.
• Set up your Trezor wallet securely.

12. Enable Discreet Mode in Trezor Suite

Users should improve their privacy by selecting the discreet mode in both the desktop and online versions of Trezor Suite.

Discreet mode allows the user to hide their account balances and any other private data presented in Trezor Suite, only disclosing it when the user hovers their mouse over it.

This is a basic but vital feature that should be utilized if other people, cameras, or views of your computer screen are present.

Conclusion

In the changing world of digital finance, protecting your cryptocurrency assets is of critical. The Trezor Wallet is a strong protector, combining security and usability in one elegant container. By following these recommended practices, you strengthen your defenses against possible attacks, from getting your Trezor device from reliable sources to using discrete modes and unique addresses.

Remember that the internet world is full of opportunities, but it also contains threats. You can navigate this landscape safely with diligence and the correct tools. So, take the time to put these practices in place and enjoy the peace of mind that comes from knowing your assets are safe.

Reference - https://trezor.io/learn

FAQs

Q. Why is it crucial to purchase a Trezor device from official sources or authorized resellers?

A. Purchasing a Trezor device from official sources or authorized resellers is essential to ensure its authenticity and integrity. Third-party applications offering discounts may sell tampered devices, putting your assets at risk.

Q. What precautions should I take when setting up my Trezor wallet?

A. When setting up your Trezor wallet, always choose a secure environment. Avoid using public Wi-Fi networks or untrusted computers. It's imperative to utilize a private and trusted computer along with a secure network during setup and transactions.

Q. How can I enhance the security of my Trezor wallet using a PIN?

A. Setting up a strong PIN is crucial to safeguard your Trezor wallet from unauthorized access. Avoid easily guessable combinations like "1234" or personal information like birthdays. It's recommended to use a PIN of at least 6 to 8 digits and to avoid repeating or sequential numbers.

Q. Why is it important to back up my recovery seed phrase?

A. The recovery seed phrase is a vital component for accessing your wallet. It contains all the necessary information for recovery. Keeping it private and secure is paramount. In case of losing access to your Trezor wallet, having the recovery phrase allows you to regain control of your account and assets.

Q.  How can I protect my privacy when using a Trezor wallet?

A. To enhance privacy, utilize features like enabling a passphrase or hidden wallet. Additionally, consider using multiple accounts for each supported cryptocurrency to prevent linking them together. Always generate a new address for each receiving transaction to avoid exposing personal information.