When you invest in crypto-currencies, you’re facing two major risks : the volatility and piracy. If the first is historically transient, the hacking of your funds is final, for a total loss and irrecoverable 100 %. The purchase of a cold wallet is therefore justified fully when you start to accumulate large sums in crypto-currencies. Today, we present to you, in detail, the Ledger Nano S, which you have probably already heard about it.
Ledger Nano S, what is it ?
The Ledger Nano S is a storage solution of its crypto-currencies on a trusted device that is not connected to your computer. In concrete terms, this takes the form of a USB key (without ferrule USB) with a screen. In English this is called a cold wallet. In proper French, one speaks of a portfolio of physical.
Source : official site LedgerWallet.com
How does it work ?
The Ledger Nano S allows you to blank out all the sensitive information of your portfolios, such as private keys, seeds, passwords, etc, Everything is encrypted thanks to the chip that team this cold wallet. When you connect your Nano S to your computer, your funds are safe, even in case of infection, with data encryption. You can directly perform your transfers from the Ledger Nano S.
You might ask what is the point of investing a little less than 100 eur in such equipment so that a portfolio paper is supposed to put your Bitcoins or other shelter. The concern is that the day where you want to have access to funds of your portfolio paper, you need to import your private key on your computer. In case of infection, your BTC can be appropriated via a malware.
Buy a Ledger Nano S
The crypto-currency supported by the Ledger Nano S
Before entering the heart of the matter, let’s start with a review of the crypto-currencies that it is possible to secure thanks to the Ledger Nano S. Please note that this is the exhaustive list at January 16, 2018, and as this is continually increasing as a function of the rise in popularity of alts :
- Bitcoin Cash
- Bitcoin Gold
- Ethereum Classic
- Stellar Lumens
Presentation of the Ledger Nano S
The Ledger Nano S is in the form of a USB key, protected by a metal shell swivel. When you buy your Nano’s, you receive – in addition to the cold wallet – a USB cable to connect it to your computer (USB 2), a small instruction manual and a logbook to record your recovery key (because yes, in case of loss of your Ledger Nano S you are able to recover your funds by inserting your recovery keys in a new wallet).
Ledger Nano S
To begin to truly use your Ledger Nano’s, you need to connect it to a computer with the Chrome browser. To perform the commissioning of the cold wallet, you do not need to be connected to the Internet, or even a computer. Using the buttons, you will need to choose the option of configuring a new device (right), with seed, brand new. The other option is to restore the portfolios to a Ledger Nano S that would have been lost or destroyed (left button).
For a new configuration, you need to set your PIN code. From the firmware 1.3, the PIN code may consist of 4, 5, 7, or 8 digits. Firmwares previous require you to configure a PIN in 4 digits.
The device provides you with then your seed (sequence of 24 words), word by word. This step is crucial, because it allows you to get the keys to recovery of your Nano S in case of trouble. The Ledger Nano’s will display one-by-one the 24 words of your seed, that you will need to note carefully on the “Recovery Sheet” provided. Check 2 to 3 times that everything is correct before moving on to the next word. If you have to be extra attention during this step, it is also crucial to protect your recovery sheet.
Use the Ledger Nano S
To be able to manage your crypto-currencies via the Nano’s, you need to install specific applications are available on the official website via the “APPS” tab. The app Ledger Manager enables you to manage the cryptos supported by your portfolio of physical. For example, the application Bitcoin allows – in addition to BTC – manage your Dash, Litecoin, Stratis, and a handful of other ALT. Ripple has an application dedicated to XRP. Note : the Ledger Nano’s can hold around 5 applications. However, they can be deleted and added at will.
When the Chrome extension of the desired currency is installed, you can through it access to your wallet Ledger Nano S to send or receive Bitcoins, or otherwise. To send Bitcoins, for example, you will have to validate the transaction using the buttons of the cold wallet. The details of this appear on the screen. The confidential information concerning your addresses never leave the Nano’s encrypted, hence its very high degree of safety.
Main competitor to Trezor, Ledger Nano S is becoming the cold wallet the most popular. It has already been distributed to more than 350 000 copies across the world. Its popularity is such that it is currently out of stock at the manufacturer and with the large distributors. The replenishment is scheduled for end-march 2018.