Trezor Suite Security Features: Metadata, Passphrases & Coin Control

Encrypted Metadata (Labels & Notes)

Metadata lets you attach human-friendly labels and notes to wallets, accounts, addresses and transaction outputs. Instead of remembering long addresses, you can name them ("Savings — Cold", "Payroll — Company X").

• Where it lives: Encrypted metadata files are stored locally or in your chosen cloud (Google Drive, Dropbox) — Suite never stores them on a Trezor server.
• Encryption: Metadata is encrypted with a device-derived key (AES‑GCM), so cloud copies are useless without your device (and passphrase, if used).
• Syncing: Use cloud sync to share labels across devices; keep a local copy if you prefer air-gapped setups.

// Example (simplified) metadata structure
{
  "version":"1.0.0",
  "walletLabel":"Company Treasury",
  "accounts":{
    "m/84'/0'/0'": {"label":"BTC - Main"}
  },
  "addressLabels":{
    "bc1q...":"Payroll — June"
  }
}

Tip: Always back up your local metadata file before reinstalling Suite. If you use cloud sync, keep the provider account secure (strong password, MFA).

Passphrases — Hidden Wallets & Plausible Deniability

A passphrase is an additional secret combined with your recovery seed to derive a different wallet. Think of it as a password that creates a new hierarchy of keys — one seed, many wallets.

• Use cases: Separate funds (savings vs spending), plausible deniability (hidden wallet), or compartmentalise for business use.
• Security trade-offs: A forgotten passphrase makes that hidden wallet unrecoverable — treat it like a second seed and secure it accordingly.
• Best practices: Record passphrases offline if you need long-term access; consider passphrase managers stored offline (hardware-backed).

In Suite, enable the passphrase feature and test access to both the base wallet and the hidden wallet. Verify addresses on the device screen when switching wallets to ensure you're interacting with the intended key set.

Coin Control — Why UTXO Selection Matters

Coin control allows you to pick which UTXOs (unspent transaction outputs) to spend. This is especially important for Bitcoin and other UTXO-based coins because it affects privacy and fee economics.

• Privacy: Avoid combining unrelated UTXOs that could link separate identities or pools of funds.
• Fee optimization: Spend outputs that minimize transaction weight or dust consolidation costs.
• Operational control: Reserve specific UTXOs for long-term storage and use others for daily spending.

Pro users often keep a "spending set" of UTXOs in a separate account and a "cold set" untouched for long-term storage. Use labels to mark these sets.

Putting it together — a workflow example

1. Create accounts: "Savings", "Spending", "Business" in Suite and label them prominently.
2. Enable passphrase for a hidden vault used for high-value long-term storage; record the passphrase offline on metal.
3. Use coin control when spending from "Spending" to avoid touching the "Savings" UTXOs.
4. Store metadata in Google Drive encrypted by Suite for cross-device access; keep a local backup on a secured machine.

This approach separates operational keys from long-term cold storage, improves auditability with labels, and reduces accidental privacy leaks.

Privacy & Operational Security Considerations

• Never paste your recovery seed into software. Suite doesn't ask for it during normal operation.
• Use dedicated, clean machines for high-value operations; keep watch-only machines for accounting.
• Consider Tor routing or a VPN for added network privacy when using Suite's network features.

Troubleshooting & Common Pitfalls

• Lost metadata labels: Check if you used local storage vs cloud sync. Restore from backup if local.
• Passphrase confusion: Test passphrases on a secondary device before relying on them for large sums.
• Coin control complexity: If UTXOs get fragmented, consider consolidating during low-fee periods — but be mindful of privacy trade-offs.

Checklist — Secure Setup

• Download Suite from the official trezor.io site.
• Verify firmware and confirm all prompts on the device.
• Decide metadata storage strategy (local vs cloud) and back up metadata files.
• Choose passphrase policy and record passphrases securely offline.
• Use coin control for privacy-sensitive transactions.
• Practice recovery on a test device periodically.