Trezor Alternative
Why should you look at a Trezor alternative to store your crypto? First, let’s see what Trezor is. Trezor is a company producing crypto hardware wallets. People use these devices to store their Bitcoin and cryptocurrencies offline without having to trust third parties like crypto exchanges or custodians. This is one of the reasons why some crypto users consider hardware wallets to be the safest way to store cryptocurrencies.
But it’s also essential to take into account the risks of self-custody. Every crypto owner needs to be aware that the risk of permanently losing funds held in self-custody is substantial. As the sole custodian of their crypto, they bear the full responsibility for it. In other words, if they lose the device or the passphrase, it is highly unlikely to recover the funds. Such mishaps have already happened to numerous people and resulted in over $100 billion in crypto permanently lost.
Given the significant risks involved with self-custody, do hardware wallets really offer the highest level of security for storing cryptocurrencies? Or should you explore a more user-friendly alternative to Trezor for ensuring the safety of your assets?
What is a hardware wallet?
A hardware wallet serves as an offline device for storing cryptocurrencies and private keys (equivalent to passwords). It functions as a form of cold storage, meaning it stays disconnected from the internet and does not involve third-party intermediaries. Therefore, some within the crypto community consider hardware wallets to be one of the most secure means of storing cryptocurrencies.
The popularity of hardware wallets saw a significant surge following the FTX crash. During that period, users became increasingly concerned about keeping their cryptocurrencies on exchanges due to the absence of clear regulatory guidelines, opaque practices in safeguarding and segregating customer assets, and even unauthorized lending of these assets. This led to a trust crisis in exchanges, as indicated by data showing a five-year low in the number of coins held on these platforms.
Hardware wallets are an interesting option for offline cryptocurrency storage. However, we believe they may not be the absolute safest method for securing your assets. On top of that, they are not necessarily the most user-friendly option due to their complexity of use, the risk of losing or damaging the device, and potential unwanted transaction fees during portfolio rebalancing. In this case, what Trezor alternative could provide a convenient and secure solution for cryptocurrency storage?
Enter Xapo Bank. As the first crypto-enabled bank, it offers a more user-friendly experience than hardware wallets but also more enhanced security than traditional exchanges. Xapo Bank is purpose-built to allow you to securely store your Bitcoin while ensuring easy access from anywhere at any time. Plus, you get access to a wide array of banking services and financial opportunities.
Now, let's look at the distinctions between Trezor vs Xapo Bank to determine the most suitable storage option for your cryptocurrency needs.
Trezor vs Xapo Bank overview
On the one hand, we have Trezor, one of the major crypto hardware wallet manufacturers. Trezor hardware wallets allow people to store their cryptocurrencies offline without needing trusted third parties.
On the other hand, we have Xapo, founded in 2013, as one of the earliest Bitcoin custodians. After a few years of operation, Xapo successfully switched from a Bitcoin wallet to a full-fledged crypto-enabled bank. Today, it allows people to store their Bitcoin on the Xapo Bank mobile app. Additionally, they enjoy different banking and crypto services from the same app.
So, is Xapo Bank an attractive Trezor alternative? Let’s check the table below.
Why should you look at Xapo Bank for a Trezor alternative?
We’ve compared some aspects of Trezor vs Xapo Bank. Now, let’s look closer at Xapo Bank as an option to replace your hardware wallet.
1. Benefit from an easy storage option with enhanced security
First, Xapo Bank solves one major problem that Trezor users can encounter: the risk of losing or getting their device or private key compromised. This could result in a permanent loss of your funds. And since you are the sole person responsible for your assets, you will likely not be able to recover them. With a Xapo Bank account, you don’t have to worry about forgetting your private key, getting hacked or losing your device. Even if you lose your phone or access to your account, you can easily recover access. Plus, our support team is available to guide you through the process.
Additionally, Xapo Bank applies the same level of institutional-grade security as it did when it was Xapo, also dubbed the Fort Knox of Bitcoin back then. This means our purpose-built advanced security features and protocols protect your assets against theft and loss.
But what truly sets us apart is that we employ MPC technology to protect your assets. This means that the private key to your wallet is split in three. Therefore, no single person can have access to your wallet.
2. Enjoy a user-friendly app
Some people in the crypto industry say that hardware wallets are more secure. But in reality, they are also really inconvenient for accessing your funds quickly. At Xapo Bank, advanced security doesn’t mean you should sacrifice flexibility when accessing your Bitcoin. That is to say that you can access your funds anytime, no matter where you are.
For example, this is how you can manage your Bitcoin with flexibility right from the Xapo Bank app:Bitcoin account for your everyday transactionsSavings account to keep your funds separate and earn a yield on themBitcoin Vault to lock up your funds with enhanced procedures for withdrawals
3. Discover the bank made for Bitcoin owners
Xapo Bank offers more than just access to secure purpose-built Bitcoin custody or a custody device. It’s a fully licensed crypto-native bank that gives you rights and protection under Gibraltar’s laws and regulations.
On top of your regulated Bitcoin wallets, get access to regulated banking services such as global money transfers, as well as current and savings accounts for USD*. Regarding accessibility, you can open a Xapo Bank account from anywhere. This means you can easily benefit from a USD account even without being a US resident.
Moreover, Xapo Bank has a robust blockchain infrastructure allowing you to transact in Bitcoin via Lightning Network. Xapo Bank was the first bank ever to integrate Lightning Network payment rails. They allow low-cost Bitcoin payments, like for your daily purchases, at the speed of light. All it takes is just a few taps on the Xapo Bank app!
4. Enjoy financial variety
What if you could keep your Bitcoin safe and watch it grow at the same time? At Xapo Bank, you have various features at your fingertips that allow you to build a diversified portfolio, manage your assets and grow your wealth stress-free:
- Deposit Bitcoin and earn 0.9% interest annually*
- Exchange it to USD and earn 4.6% annual interest*
- Grow your Bitcoin with interest paid out daily in satoshis*
- Invest in the top U.S stocks**
- Buy and sell Ethereum (ETH), Cardano (ADA), and Polygon (MATIC)***
- Earn up to 1% cash back on all your Xapo Bank car transactions (paid in satoshis)
- Convert different stablecoins and traditional fiat currencies to USD.
In short, if you want to do more with your Bitcoin holdings than just storing them, considering Xapo Bank as a Trezor alternative might be interesting for you.
The Advantages of Xapo Bank As a Trezor Alternative
After looking at Trezor vs Xapo Bank, here are some of the advantages of Xapo Bank:
- Access to liquidity instantly – Buy and sell Bitcoin anytime, anywhere. Avoid converting your BTC on exchanges while paying high transaction costs.
- Be flexible when managing your Bitcoin – No need to carry an external wallet to access your funds. Connect to your Xapo Bank account, transact anywhere, anytime and get rid of the risk of losing your physical wallet or private key.
- Earn yield on your holdings – Benefit from a 0.9% annual interest rate on Bitcoin deposits, up to 5 BTC*. Paid daily in satoshis, no minimal deposit, no lock-ins.
- Keep your assets safe – Store your Bitcoin in Xapo Bank’s MPC wallets, where your private keys are not owned by a single individual. Eliminate the risk of a hacker stealing your funds, and enjoy your peace of mind.
- Get guidance when you need it – Our experienced customer support team and dedicated account manager are available 24/7 to guide you and make the most of your money.
Without a doubt, Xapo Bank is the Trezor alternative for robust Bitcoin security, enhanced flexibility and ease of use. Join the bank built for the Bitcoin era.
Disclaimer
* The Annual Interest Rate offered on both USD and Bitcoin deposits is variable and may change at any time. Please see our Interest FAQs for more information. Interest on Bitcoin deposits will only be paid on balances of 5 BTC or less. For more information, visit our Help Centre. Interest on both USD and BTC is currently paid in Satoshis. We may instead choose to pay it in any other supported currency or currencies (fiat and/or crypto) from time to time.
**Capital at risk. This information is not investment advice. Security values can go up as well as down. Past performance is not indicative of future results.
***Capital at risk. This information is not investment advice. Crypto asset values can go up as well as down and you could lose all the money you invest. This is a high‑risk investment and you are not protected if it loses all or some of its value. Past performance is not indicative of future results.
Xapo Bank is a crypto-enabled bank licensed by the Gibraltar Financial Services Commission. We give our members access to a US Dollar and Bitcoin account, successfully bridging the gap between traditional banking and crypto. USDC deposits into Xapo are immediately converted to USD on a 1:1 basis, giving instant dollar cash value with zero exchange fees.
Great news! We'll send you more information soon.
