To store the private keys of our cryptocurrencies, nothing better than a cold wallet or Ledger . These cold wallets allow us to store the access codes to our assets safely without the need to always have them online .
Index of contents
- What is a wallet
- Types of wallets
- What is Ledger Wallet
- What are the security features of Ledger Wallet
- Own software solutions
- What is Ledger Live
- What is BOLOS
- What are the Ledger Wallet models that exist
- Ledger Nano S
- Ledger Nano X
- What is the best Ledger wallet
- Final words on Ledger physical wallets
What is a wallet
It is an element that is used to store access information to cryptocurrencies and payment information . The wallets serve so that we have custody of our cryptocurrencies and have access to them wherever and whenever we want.
A wallet allows you to create a private key and from this, generate the public key and addresses. These cryptocurrency wallets can be “hot wallets” or they can be “cold wallets” , something that we will explain below. In addition, these wallets can be managed or protected by third parties, such as exchanges.
The interesting thing about cryptocurrency wallets is that our funds are not stored locally. As cryptocurrencies are stored on a chain of blocks, they can only be accessed using the private key. This private key verifies that we are the owners of that money and thus be able to use it.
Types of wallets
We can distinguish two large groups of wallets , some called “cold wallet” and others called “hot wallet . ” We will see what each of these types are and the reason for these denominations.
- Hot wallet or hot wallet:This type of wallet is the one that is always connected to the network. They are usually wallet software that downloads the blockchain locally. The wallet software can be for smartphones (Android and iOS), for computers (Windows, Linux, MacOS) and for browsers (such as Metamask). Being in a system connected to the internet, we run the risk of illegitimate access to credentials through malware or other types of attacks or malicious software.
- Cold wallet or cold wallet:They are a type of wallet that is normally disconnected from the network. This type of wallet does not store the blocks, but rather they store the private keys. These types of wallets are used to add an extra security. We can categorize them as ledger wallet (hardware to store the private key) or paper ledger (printed private key) . Indicate that paper wallets are unusual, they are usually replaced by stainless steel or aviation aluminum plates, more resistant to the passage of time.
Then we have the wallets guarded by third parties. These are the ones used by centralized exchanges , where what we have is an address to deposit or withdraw our funds, but the private key is the property of the exchange.
What is Ledger Wallet
They are physical wallets where we can store a huge amount of different cryptocurrencies and tokens. Ledger Wallet are cold wallets where only the owner of the wallet has access to the stored information. What this type of wallet offers us is to further protect our private keys and passwords against possible hacking attempts.
The Ledger company was founded by Pascal Gauthier and eight other security experts. The company’s goal is to develop secure solutions for holding cryptocurrencies. It is currently based in Paris, France and also has offices in San Francisco, California.
What are the security features of Ledger Wallet
One of the strengths of Ledger’s cryptocurrency storage solutions is the great security it offers. A large number of items have been included to make this device highly secure . Ledger has the following layers of security to protect our assets:
- Security hardware:Ledger devices have the ST31 CC EAL5 + and STM 32 security chips . Both chips are responsible for verifying the integrity of the firmware and preventing it from being tampered with. To receive the EAL5 + certification , a series of high-level penetration tests have been passed
- Privacy:Through different security elements, only we will have access to the funds and private keys . In addition, by not depending on third parties, there is a high degree of privacy in the possession of assets and private keys
- Anti-hacking measures:It has a screen and physical buttons to enter the credentials and thus be able to access the funds and private keys. Thanks to the protection chips that act as a shield , any malware on the system will not be able to access what is stored
- PIN number:To unlock the device you need to enter a PIN number. In case of theft or loss, it is guaranteed that no one can access if they do not know this code. When entered incorrectly three times, the information is automatically erased. The information can be restored, but only through the seeds that are given to us when we configure it for the first time
- BackUp:When the device starts, the recovery words “recovery phrase” appear . This phrase allows us to restore the data stored on another device in case of loss or theft
- Cryptocurrency compatibility: Itcurrently supports more than 1800 different cryptocurrencies and tokens. Highlight just a few, such as Bitcoin, Solana , Ethereum, XRP, Cardano, Litecoin or BNB. Depending on the cryptocurrency or token, we can buy them through the wallet, send and receive, exchange or stacking
Own software solutions
To improve usability and security, two software solutions have been developed for these physical wallets . We have on the one hand an application that allows us to manage our assets quickly and easily and on the other hand a highly secure operating system to integrate different assets.
What is Ledger Live
It is a very simple to use software that allows us to interact comfortably with our Ledger Nano wallet. The Ledger Live tool is an offline solution for wallets that allows you to store, send and receive cryptocurrencies in the same application via Bluetooth , without the need for a physical connection to the device.
The tool available for macOS, Linux, Android, iOS and Windows is very easy to use. It allows users to manage their portfolio of assets and store keys safely. In addition, it offers the possibility of exchanging between different cryptocurrencies or checking the balance of a portfolio.
One of the strengths of this tool is the possibility of making an encrypted backup of the information locally. This allows us that in the event of theft, breakage or loss, through the words seed, to be able to restore or access the saved information.
What is BOLOS
It is an operating system developed specifically by Ledger for their wallets. The company emphasizes that specific devices require a specific operating system. To give us an idea, SpaceX’s Space Dragon makes use of a custom version of the Linux kernel.
BOLOS is a special operating system for Ledger wallets designed to improve security and create a user-friendly interface.
Normally a monolithically developed firmware is used, something that makes all applications optimized for it. The developers of hardware wallets do not use an operating system, they make use of a firmware where the information is stored . This means that the firmware encrypts all the asset data in a cryptographic way.
It therefore assumes that they are all under the same application and they are all interconnected. This means that a problem in one asset ends up influencing the rest of the stored assets.
To better compartmentalize it, the BOLOS operating system has been developed, which prevents information from being interconnected . The operating system is complemented by security hardware to detect possible fraudulent access attempts or malware.
Using this open operating system, developers can create and upload their own applications. Signature and authentication mechanisms and physical verification of transactions are added.
What are the Ledger Wallet models that exist
Currently the company offers two solutions for the secure storage of new cryptocurrencies and private keys. The first solution they launched is the Ledger Nano S , but later they launched the Ledger Nano X , more complete and with more functionalities.
Ledger Nano S
- Installed apps: up to 3
- Supported cryptocurrencies: more than 1800
- Software: Allows you to manage up to 27 ERC-20 assets and tokens through the Ledger Live application
- Wallests: Supports more than 50 wallets
- Security: CC EAL5 +
- PIN code: Yes
- Backup: 24 words recovery
- Bluetooth: No
- Display 128 × 32 pixels
- Connector: micro-USB
- Battery: No
- Dimensions: 57 × 17.4 × 9.1mm
- Weight: 16.2 grams
Ledger Nano S, Most Popular Hardware Wallet – Securely Buy, Store, and Manage Bitcoin, Ethereum, and Many Other Currencies
59.00 EUR
Last updated on 2021-10-11
Ledger Nano X
- Installed applications: up to 100
- Supported cryptocurrencies: more than 1800
- Software: Allows you to manage up to 27 ERC-20 assets and tokens through the Ledger Live application. Makes use of the BOLOS own operating system
- Wallests: Supports more than 50 wallets
- Security: CC EAL5 +
- PIN code: Yes
- Backup: 24 words recovery
- Bluetooth: Yes, compatible with Ledger Live Mobile
- Display 128 × 64 pixels
- Connector: USB-C
- Battery: Yes, up to 8 hours of autonomy
- Dimensions: 72 × 18.6 × 11.75mm
- Weight: 34 grams
What is the best Ledger wallet
Currently on the market we have the Ledger Nano S and the Ledger Nano X. If we are going to manage a small portfolio, possibly with the Ledger Nano S we will have more than enough. This unit has more limitations in terms of assets that we can store and in benefits.
Recommended, interesting seeing increasing existing assets, is the Ledger Nano X . This physical wallet has the strength of not requiring a cable connection for asset management as it has Bluetooth. We can store up to 100 different cryptocurrency wallets , which increases the possibilities of using this device for security. It also has the new BOLOS operating system, which offers more versatility and adds another layer of security.
Both are excellent devices to store our cryptocurrencies, although the Ledger Nano X, being more modern, has better features . It is characterized by having the new high security operating system BOLOS and supports a greater number of wallets. That we can connect it via Bluetooth is another of the strengths of this device.
Final words on Ledger physical wallets
A physical wallet disconnected from the network is something widely used by holders of cryptocurrencies and tokens. The motivation for storing the information in these wallets is to prevent a malicious attacker from getting hold of them.
Ledger’s physical wallets have a lot of prestige among users for the high security they offer. These types of wallets have additional certified security and encryption chips to prevent any type of undue incursion. In addition, we can have a backup of the encrypted information in case of any kind of problem.
We explain in this article what cryptocurrencies are and what they are for
They are a fundamental element of security for those who have any amount of cryptocurrencies. Inside the box is a book where you can write down the seed words to restore access to our cryptocurrencies in a simple way. Any erroneous attempt to enter the PIN a total of three times incorrectly, supposes the erasure of the information to prevent any unauthorized access to the data.
More than enough reasons to use this device and store our cryptocurrencies and tokens safely. Having the private keys off the network ensures that a malicious attacker cannot steal that vital credential and seize our funds.
