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Put it in the vault - Part Two
Episode 357th April 2022 • Generational Wealth with Cryptocurrency • McIntosh
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In today's episode I finish the discussion of securing your crypto. We cover the benefits of using hardware wallets and several of the most common hardware wallets.

News

Bitcoin Conference 2022 in Miami  April 6-9

Strike  -- another cryptic twitter post --- jack mallers will speak at 4.35 eastern time on April 7

https://twitter.com/Strike/status/1511859572398604290?s=20&t=yLDR5EuyhmvMyUOIwXqB1w

UK government announces plan to adopt stablecoins as legal tender

https://watcher.guru/news/uk-government-announces-its-plan-to-adopt-stablecoins-as-legal-tender

Taro protocol proof of concept on Lightning Layer

https://bitcoinmagazine.com/technical/how-bitcoin-taro-protocol-works

https://www.cnbc.com/2022/04/05/bitcoin-powers-a-fast-new-way-to-send-us-dollars-around-the-world.html

Hardware wallet links

Trezor

https://trezor.io

Ledger

https://www.ledger.com

Ellipal (Titan)

https://www.ellipal.com

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I can be reached by email at mcintosh@genwealthcrypto.com and on twitter at @McIntoshFinTech. My mastodon handle is @mcintosh@podcastindex.social. Looking forward to hearing from you!

Website

https://genwealthcrypto.com

Music Credits

Protofunk by Kevin MacLeod

Link: https://incompetech.filmmusic.io/song/4247-protofunk

License: https://filmmusic.io/standard-license

The following music was used for this media project:

Music: Ethernight Club by Kevin MacLeod

Free download: https://filmmusic.io/song/7612-ethernight-club

License (CC BY 4.0): https://filmmusic.io/standard-license

Artist website: https://incompetech.com

Transcripts

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Hey, everyone.

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No one on this podcast is a financial advisor.

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All information presented on this podcast is for informational purposes only.

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Now that we have the legal stuff out of the way, let's jump on in.

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Welcome to the Generational Wealth with Cryptocurrency podcast.

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I'm your host, McIntosh.

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And today we're going to be talking about storing your investments safely.

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All right.

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Welcome to the first Thursday episode of Generational Wealth with Cryptocurrency.

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I hope it's been a good week so far.

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We're going to start off with the news and there has been a good amount of news actually

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since Monday.

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So we'll jump right on in to that and then we'll be covering the remainder of our discussion

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about storing your wealth, storing your investments.

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So to begin, I wanted to mention that I believe this is the first case of a government announcing

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that they would allow stablecoins to be legal tender.

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So the UK government, Great Britain, has announced that it will plan, well, they're in the planning

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stages of this, but they're going to adopt stablecoins as legal tender.

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Stablecoins, something like Tether, USD, these digital assets that are pegged to a currency,

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whether that's the US dollar or maybe in their case a British pound, something like that.

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So again, more governmental regulation, more governmental moving into the process.

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This is a weekly thing that we hear and I don't want to belabor this, but this is what

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we're going to see this year.

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And probably for a few years coming.

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So that's pretty major news in my opinion.

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I think that will be followed suit by other countries around the world.

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As we move through this process, I will be including a link to that in the show notes.

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Now the second thing I want to talk about was Lightning Labs, who is one of the large

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companies that are involved in the Lightning network, the Lightning Bitcoin network, announced

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what they would call like a proof of concept for a new protocol, technically on the Lightning

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network called Tarot.

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So Tarot is the name of the protocol.

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And the idea behind it, and we're not going to go into a lot of detail about this, but

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the idea behind it is that it would actually allow you to send, wait for it, not Bitcoin,

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other digital assets.

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I want to talk about this for just a second.

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I actually think this is super important.

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As I've stated a number of times on the show, I find the Lightning network intriguing.

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I do believe that it's maybe not ready for prime time, but there are certainly a lot

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of activity going on on it and a lot of flow of money into it.

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And I think it's got a very good chance of becoming a major asset or whatever you want

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to call it.

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So I always keep my eye on the Lightning network, but basically this will be able to do something

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like you can send like stable coins, US digital dollars around the world without a bank, which

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frankly enough would actually kind of replace what XRP is doing.

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That was their idea about Ripple with banks, you know, sending money back and forth between

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the different institutions, but this is kind of a play on that that would certainly be

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extremely low cost, extremely fast.

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Now at this point, it is certainly just proof of concept.

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It has not been accepted basically into the core of the Lightning network.

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I do believe it probably will happen, however.

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Lightning Labs is no joke.

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I've listened.

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The CEO of Lightning Labs is a woman named Elizabeth Stark and I've heard a number of

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talks of hers.

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They've got a lot of money behind them and they are serious about Lightning.

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So more good news there for Lightning.

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Again, I'll have actually I'll have a couple of links in the show notes for that one for

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kind of a little bit more technical article and the one that kind of gives an overview.

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I mentioned this I believe last Monday.

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The Bitcoin Conference actually started today.

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So Bitcoin Conference 2022 down in Miami.

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I talked about how I believe that, oh, well, the conference runs between, well, April 6

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through 9.

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So yesterday, Wednesday, I should say, Thursday, Friday, Saturday.

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Today was Wednesday.

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Today was more of the industrial, institutional kind of side of things.

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Not really open for the general public.

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It was actually streamed on YouTube.

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There was a YouTube stream of it and I watched a bit of it.

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It's interesting information, interesting stuff.

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Tomorrow, though, kicks off kind of the main part of the conference.

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And our friend Jack Mollers, CEO of Strike, again, Lightning, they worked with the El

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Salvador Project, for example, had or has a talk at 435 Eastern Time on Thursday, tomorrow

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as I'm recording this.

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And if there's going to be any announcement about an Apple integration with Lightning,

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like I speculated, that would be when it is.

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And funny thing, a couple hours ago on Strike's Twitter account, they posted the date tomorrow.

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So 4-7-2022 and then 435 EST, Eastern Standard Time, completely referencing the time that

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Jack is talking tomorrow.

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So another kind of cryptic little note, more speculation.

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It's crazy.

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I hope he has something really good.

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I hope I'm not disappointed.

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I mean, I would be frankly over the moon if it was Apple, this integration.

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I think in terms of retail, I think that will bring a lot of people to the table.

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But we'll see.

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Maybe something completely different, who knows?

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You might want to check your Twitter feed or your, I don't know, coin telegraph or something

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like that around 5 o'clock Eastern Time tomorrow.

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Or check the Bitcoin price and see if it's spiked.

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Unfortunately, it did not spike today.

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It actually went down.

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We're at 43,300, which is pretty much the bottom, at least I hope.

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It went down to 43,100 or so, I believe, and it slowly crept back for the last few, maybe

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the last couple hours.

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I don't know.

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Ethereum is at 3,200 roughly, 3,194 actually.

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So it's not been a good day.

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It was all related to the stock market and the Federal Reserve meeting notes were released

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earlier today, which, you know, this kills me.

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I was talking to somebody earlier.

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So a month ago, they had the meeting and then they came out and everybody knew kind of how

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things were.

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And then they come out and release the notes.

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The notes are the same as what they said and, you know, so we panicked twice.

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It's great.

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It's good stuff.

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Unfortunately, at this point, Bitcoin still is fairly correlated to the stock market.

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And so, you know, it took a dip.

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Now, we're not underwater.

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I'm not ready to call it a bear market, but we were looking much better a few days ago.

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I did some work tonight charting and it is conceivable that where we reached was a bounce,

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you know, kind of the inflection point.

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We'll see.

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That remains to be seen, where at least we'll temporarily bounce back.

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We'll of course just keep having to monitor that over the coming weeks.

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If my dreams come true and Jack releases something that has to do with Apple, like I said, we

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may see an immediate boost and then a long-term trend of an upgrade.

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All right.

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So that's it for the news.

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We will be jumping on into our topic for this Thursday, which is a continuation of our discussion

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about, you know, how to manage your assets offline or out of centralized exchanges.

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I'm going to be talking about hardware wallets this week.

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To start with, I'm going to give a very brief summary for those who missed Monday's episode

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about what we talked about.

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And then this episode, we're going to continue talking about hardware wallets.

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So we're talking about ways that you can store your investments in crypto.

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Probably not the safest thing in the world to leave a large amount of money up on the

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centralized exchanges.

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Last week, we talked about software wallets.

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I would say, you know, if you have a moderate amount of money, you probably want to start

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keeping some off of the centralized exchanges or minimally at least spread them around several

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exchanges.

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If you cannot afford to buy a hardware wallet, which we'll be discussing prices and that

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type thing here in a minute, then use a software wallet because at least the majority of them

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are free.

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I'm sure there's probably some that charge, but wallets like Metamask, wallets like the

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two Cardano wallets, Dale Dulles and Yori, the Bitcoin Electrum wallet, all of those

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are free and you can set them up on your computer.

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You can store your assets in those wallets and most importantly, you control those private

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keys to those wallets.

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That's what we talked about last week.

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This week, we're going to talk about hardware wallets.

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Now what's the difference?

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Well, it is literally hardware versus code that's running on a laptop or mobile device.

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These typically are some type of USB type device.

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In fact, the first two that we're going to talk about, three specific hardware wallets

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and to be clear, these are not the only hardware wallets that are out there.

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These are just the three that I'm going to cover in detail.

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The first two brands are USB type devices.

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The third one actually is not.

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We're going to talk about, first of all, about the two most common manufacturers of hardware

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wallets and then we're also going to talk about one that's maybe not as common, but

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I think might actually provide a better, more secure storage solution and certainly supports

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a massive amount of tokens.

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All right, so the first two companies that we're going to talk about and they are somewhat

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similar, we're going to talk about Trezor, T-R-E-Z-O-R.

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They are actually the first company to manufacture hardware wallets for basically everybody,

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for the retail market.

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It is a very famous and very popular wallet.

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One of the defining features of Trezor is that they do operate on open source software,

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so the code is literally out there available on GitHub.

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What that does mean is, first of all, it's basically harder to find a bug in the code

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because more people are looking at it, but one of the benefits of that is that there's

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an official Trezor app, but there's other people who have built apps that interact with

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Trezor so that there's more choice there because that code is available and they can interact

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with it.

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They can use it to develop their code.

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Trezors use a USB cable to connect to the PC to carry out transactions.

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You can buy, sell, trade, stake, manage NFTs, but not dApps.

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DApps are decentralized applications, so they can cover a wide variety of services.

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Now, they have two models.

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The Model 1, which is kind of their entry-level model, it's about $80, and Model T, which

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is $260.

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It's more expensive.

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It's got a few more features.

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It's got a bigger screen.

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The next company, which has been out for quite a while and is also very popular, probably

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equally as popular as Trezor, is called Ledger.

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They claim that they're the most popular hardware wallet, actually, in the world.

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It looks like a USB stick.

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They have slightly more affordable pricing on their upper end.

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They have a Nano X that's $200.

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They have a Nano S, which is $90 on their website, or roughly those prices.

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Some of the differences, again, you're going to have a bigger little screen to interact

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with on the Nano X.

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It also has Bluetooth, so you can interact with your smartphone.

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Just like the Trezor, it supports buying, selling, trading, actually accessing dApps,

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in this case, and managing NFTs.

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It does support a wide range of things.

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What you don't see with these is, oh, I only support Bitcoin, or I only support Ethereum.

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That's nice, because you can quite typically have all of your different crypto in one place.

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Now, you should check to make sure.

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I know some of these, maybe they don't support Cardano, or I don't know, Ripple, or whatever.

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Let's say you have a big percentage of your portfolio on Cardano.

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You certainly would want to make sure that the ADA token is supported on that device.

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If you're looking at these two products, the Trezor or the Ledger, I'm not going to tell

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you to buy one versus the other.

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Now, if you're buying the entry-level device, it will support basically everything that

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most people would need.

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Maybe you don't want to spend that extra money.

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I would offer that there's a third option.

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One of the things that you need to know about both of these hardware wallets, Ledger and

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Trezor, is they are not what are actually called cold storage.

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Another word for that is actually air-gapped.

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Now, these wallets have better security, in my opinion, than software wallets that, anytime

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you're online, they're online.

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However, they do not support true air-gapping, meaning your storage, your vault, stays completely

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offline.

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And there's technical ways that they do that, but it does work.

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It's very, very secure.

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But neither one of these supports that.

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Now, one as an example that does, which I would recommend as kind of the ultimate form

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of security, is called Elipal.

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So it's Elipal Titan.

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It costs about $200.

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I'll have a link to it, just like the others in the show notes.

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It's at elipal.com.

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But it is designed to be able to be air-gapped.

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So I do not have to connect this wallet to my computer or to my smartphone via some app

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or whatever to make it work.

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And the way that this works is you actually use a QR code.

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So your wallet has a camera that will be used to scan a QR code.

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There's no physical connection via like a USB cable.

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There's no NFC, near field communication.

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There's no Bluetooth.

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There's no, I don't know, Wi-Fi connection, whatever.

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It's strictly you use the camera on the wallet to scan a QR code, which is generated from

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the app that runs on your phone.

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And then that actually is used to make the transaction.

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So this is actually kind of like the ultimate security.

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You don't ever want to say anything is unhackable.

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If I had a huge amount of money, I might consider splitting it up over multiple wallets.

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I mean, we're talking about a $200 device here.

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And if I've got multiple millions of dollars, what's $200 out of all of that, right?

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So I might split it up.

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Now one thing that you don't have to worry about, people who are first time they hear

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about this, they're like, well, what if it gets destroyed?

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What if my house catches on fire?

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Great question.

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And these are all recoverable basically in the same way.

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It's through what they call mnemonics.

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It's a series of words that's used to recover your device history or whatever you want to

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call it on a new one.

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And so I can keep my mnemonics in a separate place than my wallet as my recovery mechanism.

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Now you need to be careful about that because you can recover your wallet.

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But say for example, I'm an adult, I'm off of my own, I've got my crypto going and I've

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got quite a bit of money in there.

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I might want to keep my mnemonics in my parents' house in a safe box, hopefully.

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And the chances of both of those things being destroyed at the same time is very negligible.

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So you're providing even another layer of security there.

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I probably would not keep them both say in the same safe in case you had an intense fire

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or God forbid, maybe, I don't know, somebody broke in your house and stole the entire safe.

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That probably would not be a safe way to do it.

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Maybe you could keep it in a lock box at a, what do they call that, a safety deposit box

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at a bank.

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There's a number of ways that you can handle that or you can memorize them.

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I don't necessarily recommend that at least over the long term because some of us will

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forget and it's a terrible thing when you have hundreds of thousands or millions of

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dollars in a crypto device and then you forget the mnemonics to recover it or the passphrase.

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All right, so to me, this cold storage, this air gapping is a reason that I would use this

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versus one of these other devices.

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This is about $200.

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If we go back and look at the prices of the other ones, it's actually cheaper than the

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Traser Model T at $260 and it's the same price basically as the Nano X at $200.

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So to me, I would buy that.

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That would be the one that I would do at that price level.

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So you know your own situation, you know how much you can spend and you can make your choices

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based on that.

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But as you move up these levels of crypto, if I've got $1,000 in crypto, I'm probably

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not going to buy an air gap device like this.

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I don't really feel like that's necessary to spend a couple hundred dollars to secure

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that.

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But if I had $10,000, it's probably something I should start thinking about.

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If I had $100,000, I definitely need to be thinking about it or other mitigation techniques,

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right?

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Spreading it across multiple software wallets or whatever.

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Okay, so very cool.

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Highly recommend that you look into these if you have a significant amount of assets

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that are just sitting there.

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Now, one thing, do not, repeat after me, do not go to Amazon and order a Trasor or a Ledger.

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Why would I say that?

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It is certainly theoretically possible and in fact, probably will happen at some point

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if it's not already happened.

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That somebody will buy a Ledger off the website, off the Ledger website, take it apart, get

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the mnemonics password recovery phrase, which is in your device packaging, and then put

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it back up for sale, repackage it, put it back up for sale on Amazon.

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And then you buy it, you put your money on there and then they can simply reconstitute

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that device the same way you would if you lost it in a fire or I don't know, a tornado

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or flooding or whatever and take your money because they control it at that point, even

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though there's two copies of it.

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I hope that makes a lot of sense.

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I highly recommend that you buy these devices even if it's a few dollars more.

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This is not a place you need to be skimping on.

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Even if it's a few dollars more.

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Pay for it at the Ledger site, the Treasurer site, Elipal or however they say their name

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or whoever it is that you decide to use for your hardware device.

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And again, same thing as last week, I mentioned this last week or earlier this week, be very

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careful about your keys.

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Your keys, it's access to those software wallets, hardware wallets.

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Don't ever give out your private keys to anybody.

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Be very careful about these phishing attacks and you see stuff on telegram groups, Facebook,

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everywhere across all this social media, Twitter, whatever.

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People are, I mean, I don't know, it's just the world.

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I don't know.

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And you just have to be careful.

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Remember, you're the bank.

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You're responsible for this and you can be.

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You just have to be careful.

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All right, and we'll wrap things up.

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The Generational Wealth Cryptocurrency Podcast supports Podcasting 2.0.

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You can support the podcast in three ways, time, talent and treasure.

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If you want to support the podcast and have some time or talent, I could use help with

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If you find the content valuable, you can support the podcast with streaming sats from

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Thanks for being here.

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I hope this has been helpful and I would love to hear from you.

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I'm on Twitter at McIntosh Fintech and you can reach me by email at mcintosh at genwealthcrypto.com.

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Of course, the Generational Wealth website is at genwealthcrypto.com and go out and make

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it a great week.

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Thanks for watching.

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