Storing cryptocurrency is the most responsible process. Experts believe that keeping large amounts on an exchange or in a mobile light client is irresponsible. In this case, you should consider hardware wallets. These are physical storage devices with a high level of security.

Link to the Ledger wallet website
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Externally, they resemble a USB flash drive. The first such device was released in 2014. Ledger introduced its first model in 2016. Today, cold wallets from the French company hold a leading position in global sales. What principles does a crypto wallet operate on and how to use it — answers will be given in this article.

Ledger — internal structure and operating principles

The wallet works in tandem with a personal computer. The user creates a transaction on the computer, the data is sent to the wallet connected to the PC. The wallet owner signs the transaction, confirming it. The approved transaction is sent back to the computer and then to the blockchain. This way, private keys always remain inside, and attackers are deprived of the opportunity to hack the crypto wallet.

The case is compact in size. It is made of plastic and has a protective steel element. Inside, there is a single printed circuit board with a small display. Standard storage uses ST31H320 and STM32F042 chips, or similar models, which allow data to be stored in encrypted form. The lower-end devices in the lineup do not have a built-in battery, so they only work when connected to a computer or mobile gadget.

Ledger — available models

The current lineup consists of three models. They are available for purchase by anyone at the moment. Let's take a closer look at the main differences:

There is an opinion that a crypto wallet should only be ordered from the original website. This is not entirely correct. You can buy it anywhere and then verify it. Only an original wallet passes the authenticity check through the Ledger Live app.

Ledger crypto wallet — first launch and setup

Let's look at setting up a new device and generating private keys. This section is also dedicated to Ledger — how to use the wallet and increase transaction security. The instructions will be written using the basic wallet — Ledger Nano S as an example. Therefore, you will need:

• the device itself with the included micro USB cable;
• a personal computer with the Ledger Live app installed.

Go to the Ledger.com website and open the "Apps and Support" section. Select the desktop version of Ledger Live.

Next, select the operating system installed on your personal computer. Download the installation file, run it, and wait for the app to finish installing.

Then open Ledger Live on your computer and select the wallet you purchased.

The system will offer to set up a new wallet or connect a previously activated device. Choose the first option.

Remember that setup is done using the two buttons located on the wallet's body. Then follow the steps suggested by the app:

Next, the message "Choose PIN" will appear, again hold both buttons to confirm. Then you will see the PIN code creation window. Use both buttons to enter numbers. The password consists of 4-8 digits. Complete all steps and click "Continue". After that, the system will prompt you to re-enter the code to check memorization.

At the next stage, the wallet screen will display the message "Write down your recovery phrase". This is the most important part of the setup, since all keys are stored offline. Do not use screenshots, text editors, or record the recovery phrase using a computer.

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The wallet offers a ready-made solution — the device comes with 3 sheets on which you can write down 24 words in English. These words are the only way to recover the wallet and all funds stored on it. Press the right button on the device, writing down the words at the same time. Check the correctness of the writing, then the device will offer to check the correctness again. Hold both buttons, the screen will display "Processing". After that, the device will notify you that it is ready for use.

Then the app on your computer will notify you that you need to securely hide the recovery phrase. At the last step, you will be prompted to complete a mandatory authenticity check of the device.

Your device is fully set up!

Ledger — how to transfer cryptocurrency

To work with Bitcoin, you will need the Bitcoin app; for Ethereum tokens, you will also need a separate app. They are available in the wallet creator's app store. Next, you need to create an account.

To receive coins into your account, follow these steps:

The wallet also allows you to send funds. The user needs to connect the device to the PC and open the "Send" section on the left in Ledger Live.

Follow these simple steps:

Great! The funds have been sent to the desired crypto wallet.

Ledger — buying crypto coins with fiat

Almost any action will require an active connection between the wallet and the PC, don't forget this. Ledger allows you to buy cryptocurrency with fiat without leaving the app. To do this, follow this sequence of actions:

Then choose to top up via bank card, after which the process is similar to a regular online purchase. Don't forget to confirm the necessary actions on the hardware wallet.

Ledger Swap — how to use the built-in exchange

The wallet's software provides users with coin exchange with minimal losses at the conversion stage. This allows you to avoid third-party intermediaries, truly increasing transaction security. To make an exchange, make sure the "Exchange" app is installed. You need to do this in the "Manager" section.

Now everything is ready for the exchange. Follow these steps:

The app will prompt you to confirm the action using the hardware wallet — complete the final step. Done! The exchange is complete.

Ledger — advantages and disadvantages

Even the most popular and secure wallet has its pros and cons. Let's first look at the advantages:

• positive user reviews, a well-known brand with a proven track record;
• high level of security, no vulnerabilities;
• top models support 5,500 coins;
• multilingual and very user-friendly interface;
• steel case protected from damage;
• even if the device is lost, coins can be restored using the seed phrase;
• regular app updates, excellent user support.

The disadvantages include the following points:

• high cost of top models;
• the lower-end model is tied to a computer;
• there are no perfectly secure gadgets in the world — in 2017, a hardware wallet was hacked, after which the vulnerability was fixed;
• working with the wallet's buttons is inconvenient for many users;
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• such a double-confirmation algorithm may not suit every user.

Ledger has its own features, but it is considered a must-have device for those who store large amounts in cryptocurrency. A hardware wallet is considered the safest way to store coins today.

Link to the Ledger wallet website