Hardware Wallet

William Carey asked 3 months ago

If my hardware wallet company (Trezor) goes bust and client disappears are my bitcoins lost?

Ofir Beigel Staff replied 3 months ago

@Aiden for future posting please open a new question for this and don’t “piggyback” on other people’s questions.

The hardware wallet is an easy device for sending / receiving Bitcoins. Regarding your question about storing money on an exchange like you said – it’s not recommended, but if you have to do it at least have 2fa enabled.
Regarding storing the seed and PIN, there’s no recommended method for this – whatever you feel would be the safest way is good.
For more info please watch this video:
https://99bitcoins.com/bwbt-bitcoin-safety-expert/

Aiden replied 3 months ago

Hi,

Great website, very informative! I recently bought some digital currencies and I’m looking for a safe way to store them. I like the idea of a hardware wallet like this one. Based on the following information and how I will use bitcoin/other coins is it a good suggestion for me:
1) I’m buying coins only for investment purposes, I will never use them to purchase anything
2) While I will not be day trading, I would be looking to sell after a significant rally and then to buy back cheaper later on (I’d say maybe I would buy/sell a few times a year), if the price goes skyrocketing in a short period I would take profit and wait to buy back cheaper. How easy is it to move my coins from the hard drive back to an online wallet so that I could sell? Also, after I buy back later how easy is it to move back from online wallet to hard drive? Also it’s not recommended to store large amount on online exchange wallet but if I were to sell, I’d have to store it there for a while until the price went back down so I can purchase again… moving to my bank account and then moving back when I want to buy is not feasible since price moves so fast it would take time for money to clear. Is this a bad idea to keep it in the online wallet until I buy again and move back to hard drive? Any other suggestions here?
3) So basically with the hard drive, I would have 2 pieces of paper where I would need to write down the recovery phrase and my pin that would be used to verify any transactions I make with the hard drive? so someone would need the device and the paper to gain access. Is it recommended to store the papers in a bank deposit box at a bank then since you don’t want both stored together? What is recommended? I would also assume you would need more than 1 copy of those papers in case something happened to them? What do people do normally? One at bank and one hidden at home?

Thanks!

1 Answers
Ofir Beigel Staff answered 3 months ago

Hi William!
When you first set up the TREZOR you get a 12-24 word seed phrase. If anything happens to your physical device you can use that seed phrase to recover your Bitcoins.

Ofir Beigel Staff replied 3 months ago

Another wallet – either a new TREZOR device or a software wallet like Electrum.

Keivn replied 3 months ago

Just to go a little further down this path since I have the same question.. WHERE do I use that seed phrase to recover my Bitcoins? A website? Another wallet? Remember, in the original query, TREZOR has gone bust and is no longer a going concern.

Thanks for the clarification!

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