Bitbox Wallet Review: Open Source Hardware Wallet

Description

What is Bitbox? The Bitbox02 Wallet is an easy to use USB-C, multisig hardware wallet that is designed to store and manage bitcoin securely. It is a product of Swiss company Shift Crypto and was launched in 2015. You can plug it in to your computer or smartphone and use the Bixbox software to sign transactions or generate new receiving addresses. The wallet is based on open source software.

How to Set Up Bitbox Wallet

The process of activating your Bitbox wallet is simple, especially if it is not your first time dealing with hardware wallets. To set up your BitBox hardware wallet, ensure you have the necessary equipment: your BitBox device, a microSD card (provided with your BitBox), and access to a computer or Android phone. Begin by downloading and installing the BitBoxApp compatible with your operating system – whether it’s Windows, Linux, macOS, Tails, or Android – from the official BitBox website. Once installed, insert the microSD card into your BitBox and connect it to your computer using the provided USB cable. Launch the BitBoxApp and follow the setup wizard, which may include firmware updates for your device.

You’ll then choose whether to create a new wallet or restore an existing one. Set a strong password for your BitBox device, crucial for wallet access and management. Additionally, create a backup of your wallet on the microSD card to ensure recovery in case of loss or damage to the device. Optionally, set a recovery password, which, along with your backup, enables wallet restoration on another BitBox device or Android phone.

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Bitbox for Linux

If you’re a Linux user and own a BitBox02 hardware wallet, you can manage your Bitcoin directly on your computer using the dedicated BitBoxApp. This application supports popular 64-bit Linux distributions like Ubuntu, Debian, and Fedora.

Getting started involves downloading the appropriate version of the BitBoxApp from their website and verifying the download’s authenticity. The installation process might differ slightly depending on the downloaded file type (.deb, .rpm, or AppImage). Once installed or launched for AppImage, simply connect your BitBox02 using the USB cable. The application should recognize your device automatically. Remember to verify the checksums of the downloaded files to ensure authenticity before unpacking them.

With the BitBoxApp for Linux, you can keep track of your Bitcoin holdings by viewing your account balance and transaction history. You can even manage multiple wallets and create backups for added security. However, it’s important to remember that while the app allows viewing these details, any transactions initiated through the app will still require physical confirmation on your BitBox02 device. This two-factor approach ensures an extra layer of protection against unauthorized spending.

Bitbox Watch Only Wallet

With a watch-only wallet, you can monitor your Bitcoin holdings without constantly connecting your BitBox02. This is done by exporting your extended public key and importing it into a separate app. This grants you viewing access to your balances and transaction history, but not the ability to spend your funds.

One such method involves using Electrum wallet. Begin by launching the Electrum software wallet application and initiating a new wallet creation process by navigating to “File” and selecting “New/Restore.” Opt for a standard wallet configuration, ensuring to uncheck the option to create a new seed. Then, choose “Use public or private keys” and input your extended public key (xPub) obtained from your BitBox device, typically accessible via the device menus. After pasting the xPub into the designated text box, proceed to import it, acknowledging any warnings regarding the creation of a watch-only wallet.

Alternatively, you can explore other software wallet options like BlueWallet, which also offer watch-only functionality compatible with BitBox. The precise steps for each software wallet may vary, so consulting the respective official documentation is advised for accurate guidance.

Privacy and Security

BitBox is known for its privacy and security measures, which include a physical secure element chip that stores the user’s private keys, secure Multisig, Tor support, end-to-end encryption of communication between the app and the device. The BitBox wallet supports multiple cryptocurrencies, including bitcoin. It’s possible to use a bitcoin only edition. The wallet is also compatible with a number of popular desktop and mobile wallets, including Electrum and MyEtherWallet.

Bitbox02 hardware wallet enables you to securely back up your bitcoin seed by storing it on a microSD card. This approach minimizes the risk of losing your funds due to human error when transcribing the seed words.

BitBox02 is one of the few wallets, the other one being Blockstream Jade, that implement anti-Klepto measures. The term “Klepto” refers to a specific type of attack where an attacker physically steals the hardware wallet or extracts the cryptographic keys stored on the device. This poses a significant threat to the security of your funds. While traditional hardware wallets store private keys directly on the device, making them vulnerable to theft or extraction, BitBox02 uses a secure element chip to store and protect sensitive information, including private keys.

Moreover, the communication between the BitBox02 and companion software is encrypted. Finally, by design, wallet aims to minimize its attack surface. It doesn’t expose unnecessary components or features that could be exploited by attackers. This includes implementing anti-Klepto measures to protect against physical theft of the device.

Bitbox is an open source hardware wallet, which means anyone with technical skills and knowledge can inspect and audit the code.

Finally, the BitBox02 also supports silent payments, enhancing your privacy by allowing you to receive payments in a more discreet manner. Silent payments were proposed by Ruben Somsen in 2021 and provide an additional layer of privacy protection.

How to Buy Bitcoin on Bitbox Wallet

The BitBox wallet itself doesn’t function as a Bitcoin exchange for direct Bitcoin purchases. However, you have two methods to acquire Bitcoin and store it in their BitBox wallet. Firstly, you can buy bitcoin directly in the BitBoxApp using Pocket exchange and MoonPay. Pocket is a Swiss bitcoin exchange that automatically exchanges your bank transfers into bitcoin and sends them directly to Bitbox with no account or registration. This integration eliminates the necessity of creating an account on a separate exchange.

Alternatively, you can opt to purchase Bitcoin on a different exchange platform according to their preferences or specific requirements. Once the Bitcoin is acquired, you will be able to transfer it to your BitBox wallet.

BitBox02 Wallet: Summary

Below is a summary of its key features, benefits, and potential drawbacks.

Is BitBox02 a Good Wallet?

Yes, BitBox02 is an excellent choice if you prioritize security, privacy, and portability. In addition to its strong security features—such as a secure element chip for storing private keys, end-to-end encryption, multisig support, and silent payments—the wallet is known for its compact size, making it small enough to fit in a pocket or be carried on a keychain. Its user-friendly interface ensures a simple setup and seamless use, even for less experienced users. The BitBox02 includes a standard two-year warranty, with the option to extend it up to four years.

A standout feature of the BitBox02 is its integration with the BitBoxApp, allowing you to buy Bitcoin directly using Pocket Bitcoin exchange and MoonPay. Pocket, a Swiss Bitcoin exchange, automatically converts bank transfers into Bitcoin and sends it directly to the BitBox02 without requiring an account or registration. This integration eliminates the need to create an account on a separate exchange.

Another useful feature is BitBox02’s watch-only wallet capability. This feature allows you to monitor wallet balances and view transaction history without connecting the hardware device itself. Compatible with software like Electrum and BlueWallet, BitBox02’s watch-only mode adds flexibility by allowing balance checks and transaction monitoring while keeping the private keys offline.

One potential downside is the price (165 USD/149 euro at the time of writing this review), as BitBox02 is relatively expensive compared to other hardware wallets. Additionally, it requires a separate device, such as a smartphone or computer, to interact with it fully. However, this dependency can be viewed as a security feature, reducing the wallet’s attack surface. While the mobile app is currently only available for Android for mobile phones, the desktop app is compatible with Windows, macOS, and Linux, offering flexibility for various users.

Overall, BitBox02 stands out as a reliable, secure, and easy-to-use hardware wallet, ideal for managing your Bitcoin securely on the go.

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