After being acquainted with cryptocurrency, it becomes a must for all the users of cryptocurrency to know about hardware wallets. With the rapid growth in various cryptocurrencies, the problem of security has also come up. There are various kinds of wallets like paper, USB Flash Drive, Smartphone, Desktop, Web and Hardware wallets which have emerged to store the cryptocurrency for safekeeping. Security issues regarding cryptocurrency at present can be best solved with hardware wallets it seems. Below, we have extracted some of your concerns regarding hardware wallets. This article provides answers to all the questions regarding hardware wallets and specializes in the Ledger Nano S Cryptocurrency hardware wallet which has received much-needed fame these days.
Why Hardware Wallet?
Hardware Wallets are physical devices which have been created to keep the cryptocurrency safe.
They simply store key sets including public and private keys which help to get access to the tokens. The keys allow you to execute transactions in a cryptocurrency network.
Simply put, hardware wallets are the storekeepers of your cryptocurrency who keep it safe. Hardware wallets store the private key and sign your cryptocurrency transaction offline so that no one can try to steal your cryptocurrency by hacking the wallet.
Even if a hacker gets access to your computer they will require access to the physical device connected to your computer also, thus they can do no real harm.
Some of the important reasons why you need a hardware wallet are:
- Generate the private key and store it on the device
- It can execute the operations and transactions on the device and displays a hash of each operation
- To displays the information of the transaction
- If in case the device is lost, stolen or broken, create a backup of the private key
Some of the things to consider about a hardware device are:
- They require a manual confirmation of an operation through a hardware button
- Require the installation of manufacturer-provided software
- It works on Windows, Linux, MacOS, but it does not work on Android
- You cannot install any other software on the device
- A PIN Code is required during the setup
- It does not support all the cryptocurrencies
What is Ledger Nano S?
With looks similar to that of a pen drive, Ledger Nano S is a hardware wallet for storing cryptographic assets and securing digital payments based on vigorous safety features and useful for Bitcoin, Ethereum, Litecoin, Altcoin, Dogecoin, Ripple, Stratis, and Komodo.
Some of the important features of Ledger Nano S are:
- Multi-currency: It supports various currencies
- Built-In Display: It has an anti-malware second factor which checks and confirm transactions on display and confirm the use of the physical buttons
- Security: The data is secured inside a strongly isolated environment locked by a PIN code
- Multi-apps: It uses companion apps like cryptocurrency wallets and FIDO® U2F, GPG, SSH, also you can build your own application.
- On Google, Dropbox, GitHub or Dashlane, it supports FIDO® Universal Second Factor authentication standard
- Backup: The restoration is very easy on compatible wallets(BIP39/BIP44) or any other Ledger device and your accounts are backed up on recovery sheet
Ledger Nano S Review
It is agreeable that Leger Nano S has become one of the leading hardware wallets and have been receiving high acclaim from reviewers worldwide. Ledger was founded in France in 2015 and has since been a huge competitor to the creators of Trezor.
Looking at the design of Ledger Nano S, it can be seen that Nano S is pretty much similar to other hardware wallets like Trezor. It has a metal casing which makes it more durable and physically strong. The looks are also quite attractive in comparison to others. Due to its sleek and compact size, it is portable.
The second screen is helpful during the seed creation. When your computer is hacked, the hacker is able to see the seed displayed on your screen. Thus the seed words show on the device screen is used in these cases. The seed words shown in the device are tamperproof and can be viewed by only you.
The user interface of Ledger Nano S is also better in comparison to other hardware devices. A PIN is required to set up the device from unwanted access, which is similar to other hardware wallets.
To create your private key, a 24-word seed will be used. There are two buttons on the device which helps to control it. The entire process of the set up takes only a couple of minutes. With the installation of an app to allow interface with the device, the entire process of the setup is completed.
Chrome extension can be used as the app for user interface with the device. It gives the general account details, helps in generating crypto coin address to receive the crypto coins, sending cryptocurrency from your hardware wallet, and also provides settings for your app.
Ledger Nano S uses existing wallets like MyCellium, Electrum, Copay, MyEtherWallet, GreenBits, and Bitgo apart from current chrome extension interface.
Also, it supports numerous cryptocurrencies including Bitcoin, Litecoin, Zcash, Dash, Stratis, Dogecoin, and Ethereum. The same device facilitates you to send and receive payments, check your accounts, manage multiple addresses for these currencies.
The price of Ledger is comparatively lesser than other hardware wallets at about $65 which makes it a more attractive bargain with similar features. It can be said in comparison to Trezor, Ledger Nano S proves to be the winner solely due to its price.
At present, there are no bad sides of this product. However, the pros of this product are affordability, multi-currency support, second screen capabilities, and ease of use.
Which currencies can I store?
- Bitcoin Cash
- Bitcoin Gold
- Ethereum Classic
- XRP a.k.a. Ripple
A few things To Know Before Ordering The Ledger Nano S
Before you go on to buy the ledger Nano S, there are a few things you should keep in mind.
- The same backup key is used to store all cryptos meaning that you can control many accounts by labeling them.
- Unlimited coins can be stored
- While it is compatible with Windows, Mac, Linux, and Chrome OS, it is not compatible with Android. However, it can be connected to your Android device using an OTG cable.
- Cryptocurrencies can be received even when your Ledger is not connected to your computer or is offline.
- You do not need to transfer your cryptocurrency coins anywhere before updating. After updating the device, the coins appear automatically.
- Secure element: The security of the Ledger Nano S has also come into question many times. It is safe to say that since it is based on a dual chip architecture, the device integrity is guaranteed by cryptographic attestation.
- Malware proof: The initialization or restoration of your configuration is based on a secure environment so that the cryptographic secrets are not exposed out.
- Privacy: Neither the third party nor Ledger knows your private key since they are hard locked in the secure element. There is total decentralization.
- PIN code: A 4 digit PIN code is required each time it is plugged into your computer which ensures only your sole access to your account. In case you forget the PIN code you can reset it to its factory settings by entering the wrong pin 3 times after which the 24-word backup key is required to restore it.
- Seed Key: Don’t write down your Seed key on digital devices where it can be pilfered. Most of the time we use the computer (Sticky Notes), mobile (Memo), Cloud storage (ie: Dropbox) to store something important information. But, Seed Key is more important security item since you can lose it all.
- Since Ledger is an HD wallet, a new receiving address will be received each time you receive funds.
- You may have to prove your ownership of the address. For this, you can also sign a message using Ledger Nano S.
- You may have to wait for a few days for the delivery of the product since the product is in high demand and there is a long queue.
- It is suggested to order Ledger Nano S from its official site only.
- At present Ledger is offering Ledger Nano S and Ledger Blue both of while are equally good. However, Nano S is portable.
- Unfortunately, if you ever lose your Ledger Nano S, then you can order a new one from their official site and restore your funds using your seed key. Also, you may restore your seed key on any other popular cryptocurrency wallet.
- You do not need to buy a new ledger if Ledger starts supporting a new cryptocurrency. You can simply store newly supported cryptocurrency on the Ledger that you already have.
What’s in the Box?
Here’s what you’ll receive in the mail:
- Ledger Nano S Device
- micro-USB cable
- Lanyard for wearing the device around neck
- keychain and key ring
- Recovery sheet for writing down seed
Pros & Cons
- Most trusted wallet
- Multi-currency support
- Immune to computer
- Viruses and malware
- Wallet software integration
- Added security with pin code and advanced passphrase
- Not Free
Related post: Ledger Nano S Vs Trezor Hardware Wallet
How to Setup the Ledger Nano S?
To get in-depth with the process of the set up let us initiate with the unboxing. The ledger is sealed in cellophane for security. At the unboxing, you will find a ledger, USB Cable, Key Chain, Lanyard, Instruction Card, and a Recovery Card.
The device will be connected to your computer through USB. The device will come to life and will direct you to the URL: https://www.ledgerwallet.com/start/ledger-nano-s.
The Ledger has two buttons which are used for the operation. Pressing both buttons confirms the choice while selecting either of the two buttons will help to move left or right.
After that, you need to configure a PIN code for the device which is minimum four digits. It is essential that you memorize these digits.
You then need to write down the 24 recovery words in the order that the device provides. It is used in case you forget your PIN sometime later. The device will check 4 of them back with you and you will confirm the correct word on the device as requested.
The message “Your Device is now Ready” will be displayed.
After that, you need to use the Chrome Browser. For that, you will need to install an app to interact with the device and cryptocurrency. The Ledger Manager app must be installed in order to install other apps for various cryptocurrencies to use with your Ledger.
Since the Ledger can support 5 different apps at once, you can install the app you wish from the manager by clicking on the blue download button shown beside the currency.
After you have downloaded one from the site and had it installed, you can run it. You must enter your pin in the device and create the respective crypto address.
The app will help to send and receive transactions, create new accounts, modify display settings, and more.
Ledger Nano S has undoubtedly been one of the emerging products taking over the crypto world. Ledger Nano S has an excellent support for different currencies, is more affordable than other hardware wallets, provides optimum safety, and this is a highly recommended product.
Wallet related posts: