A Ledger Wallet is a USB wallet with the ability to that store multiple cryptocurrencies and is protected by two-factor security mechanism.
Ledger Wallet has been developed by three French startups including BTChip, Chronocoin and La Maison du Bitcoin. It was launched in 2014 and is used by most cryptocurrency miners and traders. Due to the widespread use of cryptocurrencies around the world, a Ledger Wallet makes it easy to perform transactions through its simple plug and play feature.
A Ledger Wallet is available for €79.00 and can be purchased directly from the ledgerwallet.com website. It currently supports Bitcoin, Ethereum Classic, Altcoin and Litecoin.
Ledger Wallet S is different from other wallets produced by the same company because it has a screen attached to the USB. In the previous versions, users had a security card that was used for entering the PIN code. But in this version, the PIN is set during the initializing process which makes the transactions easier to verify through the press of a few buttons.
The Ledger Wallet Nano S includes:
- 1 micro USB cable
- 1 USB wallet with screen
- 1 instruction manual
- 1 recovery manual
- 1 keychain and ring
- A lanyard for wearing device around neck
Working of a Ledger Wallet
A Ledger Wallet is designed keeping in mind the needs of a regular Bitcoin user. Due to its small size, it can easily fit in a pocket and can even be chained to a keychain. The Ledger Wallet comes with an LCD-embedded USB card key for verification of each transaction. Though this may sound a little obtrusive, but it is one low-cost way to secure the Ledger Wallet easily.
Once you have the USB with you, use it on a safe computer. You will need to install Google Chrome app to carry out transactions. You will have to first verify the wallet by authenticating it through the app. After installing the app on Google Chrome, create a wallet. While creating the wallet, ask for a 24-digit recovery phrase. The 24-digit recovery code also includes the recovery code for the smart key.
Note: The 24-digit recovery phrase should be kept safe. Without it, the wallet will not be accessible.
Once the wallet is set, simply plug-in the USB and enter the code that you had setup while initializing the Ledger Wallet S USB key.
The wallet is easy-to-use if you are an existing Bitcoin wallet user. The only addition inculcated in this wallet is the two-factor security verification factor, made possible through the card. Think of this security key as your only way to access the wallet.
It will then prompt you for verification before making the transaction. Confirm it by pressing the buttons available on the USB key.
- Buttons and Screens
A compelling feature in this wallet by Ledger Wallets is the addition of the screen and the button. Previously, the users had to keep the security card for making any transaction but now everything is available on the USB. The buttons need to be pressed at the same time to confirm the transactions.
With the addition of the screen, the Ledger Wallet can make transactions even when connected to an infected computer.
- 3-Try Wallet Security
Another feature rolled out courtesy the Ledger Wallet was the addition of three tries. A stranger won’t be able to use the wallet even if they try to enter the PIN code thrice. The wallet will automatically get locked and the device will be reset to factory settings. The owner will then have to use the 24-digit phrase key for gaining access to the wallet’s contents.
- Offline Storage
The main purpose Bitcoin miners use the Ledger Wallet is because it is an offline storage medium and they don’t need to be afraid of their data getting lost even if the computer’s security is compromised. Since state-of-the-art security procedures are used in the Ledger Wallet, the offline storage is simply out of the reach of a hacker.
- Anti-Tampering Seal
Just be sure to check the tamper-proof seal when it arrives. Make sure it is not altered in anyway, or else someone was most definitely tampering with it.
If this is the case indeed, call the support and request them for a new device.
- Passphrase (To be added Soon)
A new security feature (under development) is that of the passphrase. This will be an addition to the 24-digit security pass of wallet. The passphrase will allow you to set your own phrase (in addition to all the existing security protocols that concern Ledger Wallet), so that even if the 24-digit security is compromised, the attacker won’t be able to access the wallet without this passphrase.
The screen on the USB key adds additional security layer. You can easily confirm the payments through the screen and also check if the correct amount is being sent or not.
Why is Ledger Wallet better than Other Digital Wallets?
Apart from the regular two-factor security features, Ledger Wallet provides an offline security layer that isn’t available in other digital formats. This way a hacker won’t be able to use your wallet if it is not connected to a device and your assets will remain secure.
In the worst case scenario, even if a hacker somehow gains access to the wallet, the two-factor security option will make the wallet redundant.
While searching for an offline wallet for your digital currencies, doing a cost-benefit analysis is a recommended act. As per our analysis, Ledger Wallet is a good investment for protecting your digital currencies.