What is Ledger Wallet & Which Coins are Supported by Ledger Wallet?
If you’re a novice with cryptocurrencies and this whole cryptocurrencies’ wallet business still sounds strange to you, you can learn more.
This article is something you really need to pay attention to. Apart from beginners, already established cryptocurrency investors and traders will also find this guide beneficial.
What is a Cryptocurrency Wallet?
Just like a normal wallet is meant for holding and keeping your physical cash, cryptocurrency wallets do pretty much the same for your coins and tokens.
A cryptocurrency wallet is an online (virtual) account that stores your cryptocurrencies. The concept is similar to that of normal bank account with the distinction narrowed down to a completely digital use and non- fiat cash support.
To secure your cryptocurrencies, Cryptocurrency wallets develop private keys. These are strings of unique characters that give you exclusive access to your crypto funds.
Cryptocurrency wallets can be in various forms, and these are the common types:
- Online wallets – These are only accessible on a website. Examples are MyEtherWaller and Mask
- Mobile Wallets – You can download a mobile app on your phone using iOS/Android stores. Most crypto exchanges provide mobile wallets. Coinbase is a popular example
- Hardware – Another type of cryptocurrencies wallet that has become popular more recently is the hardware cryptocurrency wallets.
These are electronic devices with screens, designed exclusively for the storage of cryptocurrencies and with the ability to generate your private key offline. This will help with keeping your cryptocurrency even more secure from hackers and thieves
What is a Ledger Wallet?
Ledger is a company that specializes in the production/manufacture of hardware cryptocurrency wallets. So far, they have two flagship products which are the Ledger blue and the Ledger Nano S. The ledger blue is a device that allows you to access various cryptocurrency and blockchain apps.
More importantly, the Ledger Nano S (which we shall be focusing on here) is the exclusively designed hardware cryptocurrency wallet. With support for various kinds of cryptocurrencies, the Ledger Nano S is a truly efficient device for keeping your cryptocurrencies safe.
Additionally, transactions can be carried out almost instantaneously, giving you a secure and smooth way to purchase, sell, or move your cryptocurrencies around. Although Ledger wallets are not the only form of hardware cryptocurrency wallets available, they are quite popular and widely accepted.
How Ledger Wallets Work?
Recent hacks and thefts of cryptofunds by nefarious elements have made people call the safety of app and web-based cryptocurrency wallets into question.
Hardware cryptocurrency wallets make it safer to hold and invest coins and tokens, especially when they’re in large amounts.
Okay, this is a step by step guide to the functioning of Ledger Wallets
- Buy a Ledger wallet: This is a pretty obvious point, but nevertheless, logic requires that you start from here. According to the Ledger Website, the Ledger Nano S hardware cryptocurrency wallet costs 79 Euros, exclusive of tax and perhaps shipping to various parts of the world. You can purchase directly from the website or from online store, Amazon.
- Set it up: After getting your ledger wallet device delivered, it’s time to get it running. The first thing you want to do is set up your 4 digit pin which gives you access to the private keys.
For hardware cryptocurrency wallets, the private keys are not left on the web where they are vulnerable to attacks by malware and hackers. Rather, they are stored offline on the device, away from any prying or nicking eyes. The pin is an extra layer of security meant to keep your private keys safe.
- Write down your recovery phrase (24 words): This step is sort of a backup option. Your ledger wallet device supplies you with a 24 word phrase. This will restore access to your cryptocurrencies in the event that your ledger wallet gets damaged, lost, or stolen. The thief wouldn’t be able to access the device without your pin anyway, and the recovery phrase restores your access and ownership.
- Create wallet(s): If you do not already have an existing cryptocurrency wallet, then you can create one on the ledger wallet with the various wallet apps available. Bitcoins, Ethereum, Litecoin, Dogecoin, and any other cryptocurrencies you’re using (provided they’re supported on Ledger wallets) all have their wallet apps.
You can download these apps onto your devices and instantly begin to buy, sell, and manage your funds. However, if you already have wallets on these platforms, all you have to do is login with the apps and keep using your crypto. The ledger wallet notably give you increased security in handling your funds.
- Update as required: The manufacturers of Ledger wallet are continuously working to make it better, more secure, and supportive of more cryptocurrencies. Therefore, updates to the system (known as firmware) are relatively available. Be sure to take advantage of these in order to get the best out of you ledger wallet experience.
Although some users have reported technical issues while trying to update. This is why it’s important to always have your 24 -word recovery phrase handy. That way you can always get your stuff back in the event of any technical problems.
- Watch out for possible scams: To steal the private keys to your cryptocurrencies off the web with ledger wallets is virtually impossible. Therefore, hackers and other nefarious elements have found a way of getting illegal access to people’s cryptocurrencies.
They achieve this by preconfiguring ledger wallets and keeping the recovery phrase. As soon as the new user links their cryptocurrency ledger apps, the thief simply gains access through the recovery code and cleans out the account. To avoid unfortunate circumstances like this, ensure that you set-up your Ledger wallet yourself.
Do not even think of buying them second hand off sites like e-bay or even from individuals. Be sure to order directly either from the Ledger website or from a website like Amazon. Again, we would like to reiterate that already configured ledger wallets are a no-no and you’re almost sure to lose all your Cryptocurrencies.
Which Cryptocurrencies are Supported by the Ledger Wallet?
Like we’ve already mentioned, Ledger wallets are a work in progress. Not all cryptocurrencies are currently supported on ledger wallets. This said however, most of the major and more popular ones are already supported on the Ledger wallet.
Just to be sure, below are a list of the cryptocurrencies that we recommend them to all CoinReview readers with ledger wallets:
1. Bitcoin (BTC): Well, we understand this is obvious but you still can’t blame us for putting it here either. Bitcoin is definitely the most popular and highly priced currency and we’ve kept it in its rightful position here at the top of the cash.
2. Ethereum (ETH): Another big name in cryptocurrencies. Beyond just being a coin, ethereum is a massive platform providing innovative blockchain solutions. It defintitely deserves its place on this list.
4. Ethereum Classic: Also a forked version of Ethereum. Ledger wallet has you covered either you’re transacting with the traditional coins or one of its adaptations.
5. Ripple (XRP): Not as popular as the big boys (Bitcoin and Ethereum). But Ripple has also caused considerable ripples (pun intended) in the cryptocurrency world and is worth holding on to. Ledger wallets allow you to do just this.
6. Litecoin: Another cryptocoin that has allowed investors to diversify and keep a finger in many pies.
7. Dogecoin: If this coin has survived the twists and turns of the cryptomarket so far, then it has earned the support of Ledger wallet, and perhaps a place in your crypto coin collection too.
8. ZCash: This one is often viewed with suspicion in some quarters due to the privacy-oriented system, but if Ledger wallet supports it, maybe it’s not that bad.
9. Dash: Gradually gaining acceptance within the ecosystem, Dash also has a place on Ledger wallets
This is not all however, there are still a wide array of cryptocurrencies supported by ledger wallets and they are listed below:
Final Word of Caution
As much as Ledger keeps trying to keep its hardware cryptocurrency wallet secure, criminal elements are also on their toes trying to counteract these efforts. It’s been reported recently that hackers have found a way to re-route payments and transfers form ledger wallets to their own wallets.
However, provided you’re extra careful, there is no cause for alarm. Here are a few tips you should keep in mind to stay safe when using Ledger wallets.
- Ensure the safety of your PIN, don’t give it out at any time
- Always double check any address you’re sending funds to in order to avoid playing into the hands of a malware.
Regardless of these issues, hardware cryptocurrency wallets are, at the moment, still your safest bet for keeping your crypto assets secure.
DisclaimerThe writer’s views are expressed as a personal opinion and are for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.
Bitcoin is the most prominent cryptocurrency with a 40 percent share of the total coins and tokens market capitalization...