Ethereum (ETH) is the second-largest cryptocurrency, right after Bitcoin (BTC), the undisputed market leader. While Bitcoin is mainly used as decentralized, digital cash for executing transactions, payments, and storing value, Ethereum has far more functionalities, focused on web and app development solutions and advanced programming tools.
The fact that the Ethereum ecosystem is open-source means that any developer with sufficient programming knowledge and understanding of the main ETH programming language, Solidity, can create all sorts of apps and code based on the ETH blockchain’s technology.
The high adaptability and versatility of ETH-based programming tools such as the Ethereum Virtual Machine, and other smart contract-based functionalities have enabled developers to create and launch their own cryptocurrencies built upon the ETH system. ERC20 tokens are the most popular type of cryptocurrencies built on ETH and there are hundreds of such tokens with various functions.
Let’s take a look at what development options the ETh blockchain offers, explore what are ERC20 tokens, and learn how to store them on a state-of-the-art Trezor hardware wallet.
The Ethereum Blockchain
When Ethereum was launched back in 2015, the idea behind it was to provide users with tools for developing and building apps that can literally change the world with the help of blockchain technology.
One of the main aspects of the ETH network is smart contracts. These contracts are automated, self-executing agreements that are built using programming code and are able to automate various processes in order to save time and money for businesses and institutions all over the world. With the help of smart contracts, whole business processes such as salary payouts, payments for services, and logistics chains in production and retail systems can be automated to work using the ETH blockchain. In the civic sector, healthcare and educational institutions can easily automate data classification processes and safely store patient or student information with the help of smart contracts.
The next level of Ethereum based smart contracts is decentralized applications that can be built using these contracts. A decentralized application isn’t dependent on any centralized big data technology platform and it can be programmed to include various automated features powered by the ETH blockchain.
Developers have recognized the huge potential of the technology behind Ethereum and used smart contracts and decentralized apps to build their own cryptocurrency tokens on the ETH blockchain.
ERC20 is the most popular token standard for creating crypto tokens on the Ethereum blockchain. This token standard signifies a set of rules for launching ETH-based tokens in terms of data forms, convertibility, security, and other programming standards that are necessary to be met before a developer can launch their token.
There are hundreds of popular ERC20 tokens and some of the most popular cryptocurrencies with huge market caps are in fact ERC20 tokens like Binance Coin (BNB), Tether (USDT), Chainlink (LINK), Basic Attention Token (BAT), Dai (DAI), USD Coin (USDC) and other altcoins.
Trezor One Cryptocurrency Hardware Wallet
When dealing with cryptocurrencies, you need to have a reliable crypto storage solution. Since cryptocurrencies don’t exist beyond their native blockchains, the private keys, which act as passwords that prove your ownership over a certain amount of cryptos, need to be securely stored in a digital location. This is why crypto wallets were developed. Among cryptocurrency wallets, hardware wallets are regarded as the most secure option for storing assets, especially if you have large amounts of digital currencies.
Some of the best hardware wallets include the Trezor Model T, Ledger Nano S, and Trezor One, which this guide is about. The Trezor One model is available for purchase from the trezor.io official website. It’s a highly advanced, specialized USB device with industry-leading encryption solutions for storing your private keys safely offline, beyond the reach of cyber-attacks and malware.
The device comes with password protection, 12-word seed phrase protection, a recovery seed, two-factor authentication, and GPG encryption. Apart from the top security measures, the Trezor One also comes with a user-friendly interface and it is quite easy to use. The wallet supports the storage of ERC20 tokens and it can be connected with various software wallets to easily manage your ERC20 and Ethereum addresses.
Myetherwallet.com (MEW) is one of the best third-party wallets for storing ERC20 tokens in combination with the Trezor One hardware wallet. MEW is a great Ethereum wallet also compatible with Ethereum Classic (ETC) and ERC20 tokens of all kinds. The wallet platform is accessed through the web, but the private keys to your cryptos are stored on your device.
This wallet is available as a desktop wallet for PCs and laptops with Windows, Linux, and Mac operating systems, and there is also a very simple-to-use MEW mobile app compatible with iOS and Android mobile devices. MEW has good customer support, along with a lot of how-to videos that explain all the functions of the wallet.
The MEW wallet is a great choice for pairing with a Trezor One device if you’re looking to securely store your ETH and ERC20 tokens. Other software wallets that can be used to store ERC20 tokens in combination with Trezor are Metamask and MyCrypto.
Storing ERC20 Tokens on Trezor
We’ve already mentioned that a MEW wallet combined with a Trezor hardware wallet is a great solution for storing ERC20 tokens. Here’s a step-by-step guide to combining a MEW wallet with a Trezor device and storing ERC20 tokens on it.
The first part of the process is to set up your Trezor and MEW wallets:
- Connect your Trezor USB device to your PC or laptop and type in the PIN code.
- Go to MyEtherWallet.com and choose the Send Ether and Tokens option from the menu. In the menu bar titled How do you like to access your wallet, choose Trezor.
- The platform will initiate a pop-up window for exporting your public key. Choose the Export option.
- Now you have to enter a derivation path to where your public key will be derived from your seed phrase.
- Choose the wallet address you wish to manage and select the Unlock your wallet option. Now, you have accessed your MEW wallet.
Now, you can transfer ERC20 tokens to your Trezor device:
- Log into your MEW account.
- Choose the Send Ether & Tokens option.
- Choose Trezor as your destination wallet and select the Connect Trezor option.
- Unlock your Trezor device with your personal PIN code and passphrase.
- Now, you will see all the ETH addresses and ERC20 token addresses that Trezor is managing for you.
- Select the appropriate address and copy it to any other crypto wallet or exchange platform account when you wish to send ERC20 tokens from another address to your Trezor device.
A Few Final Words…
Everyone wants to keep their cryptos safe and one of the best methods for keeping your digital currency secure is to combine a good software wallet with a trusted hardware wallet. The combination of MEW and Trezor firmware is exactly one of those secure and reliable options for storing all your ETH and ERC20 tokens.